A lawyer sought enforcement of an indemnity agreement executed by former clients in relation to claims arising from the release of disputed trust funds.
After a third-party action was commenced against the lawyer, his professional insurer settled the claim for $100,000 and sought reimbursement under the indemnity agreement.
The respondents argued the settlement was improvident and unreasonable.
The court held that the settlement was reasonable in the circumstances, particularly given the uncertainty of a pending Rule 21 motion and the risks of continued litigation involving a multi‑million‑dollar claim.
The respondents were found jointly and severally liable to reimburse the amounts paid under the indemnity agreement.
