Niagara Frontier Transportation v. Tri-Delta Construction Corp

In Niagara Frontier Transportation v. Tri-Delta Construction Corp (107 A.D.2d 450 [4th Dept]) affd 65 N.Y.2d 1038 [1985], Justice Denman neatly synthesized the law that relaxed in certain cases the strict rule requiring that an indemnity clause expressly state that a party is to be indemnified against his own negligence before the clause will be given that effect: "Where an indemnification agreement has been negotiated at arm's length between sophisticated business entities, the intent being to allocate the risk of liability to third parties between themselves, essentially through the employment of insurance, the rule has been somewhat liberalized. In such circumstances it is not necessary that the exculpatory language refer expressly to the negligence of the indemnitee, so long as the intention to indemnify can be clearly implied from the language and purposes of the entire agreement, and the surrounding facts and circumstances" (Id. at 454)