SteveHarris
Junior Member
What is the name of your state? Massachussetts
John Doe Inc., contracted with me to act as a third party and pay any independent contractors that I used. They charged me and the IC's fees for this service.
The paragraph in the contract below deals with indemnification:
"John Doe Company will undertake and pay for energetic and good faith defense of regulatory and/or governmental audits, assessments, claims, demands, lawsuits, administrative proceedings, losses, damages, costs and expenses arising out of Independent Contractor status challenges and issues by the John Doe Affiliated Independent Contractors performing Services under this Agreement."
I have been audited and assessed by the state of California for back payroll taxes. John Doe unsuccessfully appealed the assessment and John Doe refuses to pay the assessment, saying that my contract only calls for “legal indemnification."
My attorney said John Doe is liable to pay for any damages because, “there is no such thing as legal defense for 'losses and expenses.' [John Doe] is obligated to pay any damages or losses. If [John Doe] settles on your behalf, it is your "loss" unless [John Doe] pays."
Any opinions would be greatly appreciated. Thanks!What is the name of your state?
John Doe Inc., contracted with me to act as a third party and pay any independent contractors that I used. They charged me and the IC's fees for this service.
The paragraph in the contract below deals with indemnification:
"John Doe Company will undertake and pay for energetic and good faith defense of regulatory and/or governmental audits, assessments, claims, demands, lawsuits, administrative proceedings, losses, damages, costs and expenses arising out of Independent Contractor status challenges and issues by the John Doe Affiliated Independent Contractors performing Services under this Agreement."
I have been audited and assessed by the state of California for back payroll taxes. John Doe unsuccessfully appealed the assessment and John Doe refuses to pay the assessment, saying that my contract only calls for “legal indemnification."
My attorney said John Doe is liable to pay for any damages because, “there is no such thing as legal defense for 'losses and expenses.' [John Doe] is obligated to pay any damages or losses. If [John Doe] settles on your behalf, it is your "loss" unless [John Doe] pays."
Any opinions would be greatly appreciated. Thanks!What is the name of your state?