Golf cart incident sparks $500,000 indemnity case

By Justin Stoltzfus | Jun 1, 2018

A complaint filed May 25 in U.S. District Court for the Northern District of California provides a cautionary tale about following the rules – or paying the price.

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SAN FRANCISCO – A complaint filed May 25 in U.S. District Court for the Northern District of California provides a cautionary tale about following the rules – or paying the price. 

The plaintiff, MGA Employee Services, is demanding that the defendant, The John Stewart Company dba as Westbrook Apartments, pay $500,000 in injury claims by one of MGA's employees, after the defendant allegedly allowed an MGA employee to drive a golf cart in violation of contract provisions and that decision resulted in serious injuries to another employee. The venue has been found to be appropriate based on the defendant's location.

A timeline submitted in the complaint alleges the two parties entered into an agreement on Feb. 24 of 2017, and that a few months later, on April 21, an MGA employee was allowed to drive a golf cart. 

MGA has already paid the $500,000 in injury claims and wants indemnification from The John Stewart Company.

Count one of the complaint, breach of contract, shows that the agreement between the two companies included language showing that the defendant agreed to indemnify MGA in various situations including “any and all liability claims, demands, actions, rights of actions or legal proceedings whatsoever should MGA personnel drive any motor vehicles – in the performance of services pursuant to this agreement.”

The injured employee's counsel requests damages of at least $500,000, reasonable attorneys fees and “such other relief as is just, equitable and proper.” The plaintiff is also demanding a jury trial.

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