Oklahomans are justifiably concerned about judicial activism. Even “minor” rulings can have major consequences. A recent Oklahoma Supreme Court decision falls into that category.
Thanks to the court’s ruling, an untold number of contracts have been nullified and countless state businesses left with daunting potential legal liability. Oklahoma companies operating in the oil and gas industry may be among those hardest hit.
When companies use subcontractors, it is common to have an indemnity contract that protects the contracting company from being sued for alleged wrongdoing done by a subcontractor.
But in Knox v. Oklahoma Gas and Electric Co., the Oklahoma Supreme Court invalidated an indemnity contract.