Lostocco v. D'Eramo

I respectfully dissent. In Georgia, an indemnity clause must be strictly construed against the indemnitee. See, e.g., DeKalb County v. Lenowitz, 218 Ga. App. 884, 889 (4) (463 SE2d 539) (1995); McMichael v. Robinson, 162 Ga. App. 67, 69 (2) (290 SE2d 168) (1982). Here, the indemnity clause in the settlement agreement required D’Eramo to indemnify Lostocco “from and against any liability for federal taxes arising out of PLI and its operations.” It did not expressly require indemnification for the assessment of a penalty. The assessment against Lostocco, even though it may have been “assessed…