Judgment and Liabilities Clause Samples
The Judgment and Liabilities clause defines the responsibilities and consequences for each party in the event of a legal judgment or claim arising from the agreement. Typically, it outlines who will be liable for damages, costs, or penalties if a court or arbitrator issues a decision against one of the parties, and may specify procedures for handling such liabilities, including indemnification or reimbursement. This clause serves to allocate risk between the parties and ensures clarity regarding financial and legal responsibilities should disputes escalate to formal judgments.
Judgment and Liabilities. In the event that the Fire Department is levied a judgment or liability or incurs an unanticipated and reasonably necessary expense that is not covered by insurance or another funding source, each City shall equally share the costs of such judgment, liability or necessary expense and shall pay the Fire Department within 30 days of the request by the Fire Department.