What is this Indemnification Provision in my Contract?


Indemnification is the action of protecting (someone) by promising to pay for the cost of possible future damage, loss, or injury. In a contract setting, it is a provision where one party promises to pay the costs of potential future liabilities incurred by the other party as a result of some defined set of circumstances that might occur because of the contractual arrangement.


The most common example of an indemnification agreement is an insurance policy. In an insurance policy contract, […]

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The Waters are a Bit Muddier with the Ferguson Decision on Mechanic’s Liens Relating Back to First Work

In the recent case of Ferguson Enterprises, Inc. v. Keybuild Solutions, Inc., Case No. 10CA2234, December 22, 2011, the Colorado Court of Appeals addressed a situation regarding the priority of mechanic’s liens.

Backround Summary

To understand the situation, one must understand that mechanic’s liens for certain improvements to a property such as new construction have priority over other earlier liens or mortgages on the land.  CRS 38-22-103(2).  However, a lien for a construction loan which is taken out to do the […]

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New Legislation Passed into Law Regarding Mechanic’s Liens

In Weize Co., LLC v. Colorado Regional Construction, Inc., No. 09CA1369, the Colorado Court of Appeals held that a plumber’s claim to foreclose on a mechanic’s lien had to be dismissed because of the plumber’s failure to file a lis pendens or notice of commencement of action on the title of the property.  The defendant did provide a lien release bond, and the liens were released.  However, while the supplier to the vendor was apparently successful in establishing violation of […]

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Clarification of Liability Under the Excessive Lien Statute, Contrast to Trust Fund Statute

The Colorado Court of Appeals released its opinion in the matter of JW Construction Co., Inc. v. Elliot, No. 10CA0244 (Colo. Ct. App. March 17, 2011) regarding the construction of a custom home.  Specifically, the homeowners asserted that they found discrepancies in the invoices and pay applications provided by the General Contractor.  When the Contractor refused to provide complete records to support the draw requests, the homeowners terminated the contract and proceeding with the work on their own, paying the […]

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