Hooper Assoc., Ltd. v. AGS Computers, Inc

In Hooper Assoc., Ltd. v. AGS Computers, Inc., 74 NY2d 487 [1989] the plaintiff prevailed in an action for breach of contract and later asserted that the contract's indemnification clause entitled it to recoup the attorneys' fees incurred in prosecuting the action (74 NY2d at 489). There, the contract provided: "Defendant shall at all times indemnify and hold harmless [plaintiff], its successors and assigns and any of its officers, directors, employees representatives, and/or agents, and their heirs, executors, administrators, successors and assigns or each of them against and from any and all claims, damages, liabilities, costs and expenses, including reasonable counsel fees arising out of: (i) Any breach by [defendant] of any express or implied warranty hereunder and any express representation or provision hereof, . . ." (id. at 490 n 1). The Court of Appeals held that the indemnification clause did not contain language permitting the plaintiff to recover the fees from the defendant (id. at 492). The Court reasoned that the clause was typical of those providing indemnification of third-party claims (id.). Focusing on the subjects of the claims covered by the clause, the Court stated: "None are exclusively or unequivocally referable to claims between the parties themselves or support an inference that defendant promised to indemnify plaintiff for counsel fees in an action on the contract" (id.).