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Expert Analysis

M&A Indemnification: Who Should Control 3rd-Party Claims?

Law360, New York ( March 28, 2016, 10:16 AM EDT) -- Indemnification. The devil is in the details, and it is all about control. When a third-party claim arises following the sale of a private company, indemnification may cover the related economic losses, but the party controlling its defense may influence the claim's ultimate effect on the noncontrolling party, both economically and otherwise. Some indemnitors may want a contractual right to assume control over the defense of third-party claims, but certain situations may call for an alternative regime in which the indemnitee maintains control....

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