Gap v. Apex Xpress CA1/5
This appeal concerns an indemnity agreement between Apex Xpress, Inc. (Apex) and The GAP, Inc. (Gap). Following a bench trial, the trial court determined Apex was obligated to indemnify Gap for a portion of defense and indemnity costs incurred in defending a lawsuit filed by an Apex employee. The court also awarded Gap a portion of attorney fees and costs incurred in a declaratory relief action Gap filed against Travelers Insurance Company (Travelers), the company from which Apex purchased insurance. The court entered judgment for Gap.
Apex appeals. We conclude Apex has an obligation to indemnify Gap for a portion of the fees and costs incurred in defending the employee’s lawsuit, but that the court erred by awarding Gap a portion of attorney fees and costs incurred in Gap’s lawsuit against Travelers. We therefore reverse the portion of the judgment awarding Gap $25,914.76 in attorney fees and costs.
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