When a shopper is injured in or near a department store, thestore's insurer consults the applicable lease agreement early on.The lease may require the mall owner to indemnify the tenant storeif the shopper brings a lawsuit, or it may require the store toindemnify the mall.
If the shopper sues both the mall and the store, then the partyentitled to indemnification under the lease can “tender” the suitto the other. When tender is accepted, the party accepting tenderagrees to defend the other during the lawsuit, and to pay anyjudgment entered against it at trial. As such, an indemnificationclause can allow for a significant savings in defensecosts.
On occasion, however, a lease is silent on the issue ofindemnification. Or the indemnification clause cannot be enforcedbecause it is too general and vague. In these situations, theparties may be able to resort to common lawindemnification.
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