
Deborah Alley Smith, Sharon D. Stuart and Abbott M. Jones won an appeal reversing an attorney fee award of approximately $1.1 million based on an indemnity agreement. The Alabama Supreme Court wrote opinions on both the original appeal and the rehearing. Among other issues, the court reaffirmed that Alabama law does not permit a party to be indemnified for its own wrongful conduct, and held that the party seeking indemnification unquestionably was sued for its own allegedly wrongful acts such that it was not entitled to indemnity for attorney fees as a matter of law. The court also addressed the meaning of best efforts contracts, holding as a matter of law that the defendant did not breach the indemnification clause because the defendant had exercised its best efforts under the parties’ agreement.

