Settlement and Alternative Dispute Resolution
Settlement Fundamentals
Settlement indemnity provisions require the plaintiff to satisfy liens and to indemnify the defendant against claims by lienholders, medical providers, or insurers asserting rights to the proceeds.
Indemnity does not bind the lienholder.
Alternative Names:
Settlement Indemnity, Hold Harmless in Settlement
Why it Matters?
The provision protects the defendant contractually but does not defeat a lienholder's independent statutory rights, so a Medicare or ERISA plan can pursue the defendant regardless of the indemnity. That makes indemnity a backstop rather than a solution, and verifying lien resolution before funding is the actual protection. Plaintiff counsel indemnifying personally rather than only on behalf of the client adds meaningful security.
Frequently Confused with
Related terms
Frequently asked questions
Does indemnity protect against lienholder claims?
What is the actual protection?
