Calif. Appeals Court Rejects Indemnity Claim by Property Manager

LOS ANGELES - A California appellate panel has declined to overturn a trial court decision denying a property manager's claim for $77,612.42 in costs for defending against the property owner's unsuccessful claims for constructive fraud and negligence. Karr v. Hook, et al., No. B192846 (Calif. Ct. App., 2nd Dist.).

California's Second Appellate District ruled on March 17 that because the indemnity clause in the management agreement between owner Bailey Karr and Janet Hook did not expressly provide indemnification for "active" negligence, it must be construed against Hook.

Bailey Karr and her daughter, Hillary Kelley, were co-trustees of the Karr Family …