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Chapter 23 Assignment: Shifting Losses Chapter 23 deals with indemnities. After reading the chapter, please read the following prompt then draft an indemnity agreement for the following scenario: Billionaire real estate mogul Glenn Rhee owns two large parcels of land in Alexandria, VA: Greenacre and Blueacre. Greenacre is to the north and Blueacre is directly south. Both parcels of land are surrounded by protected conservation land. A state highway runs perpendicular to the properties. Greenacre Owned by Walker Treatment Inc. Blueacre Owned by Grimes Highway - - - - - - - - - - - - - Six years ago, Mr. Rhee decided to leave the real estate business and open a chain of pizza restaurants called "Maggie's Slice." Greenacre was quickly purchased by Walker Treatment Inc., which is a hazardous materials treatment center. For the past six years Walker Treatment Inc. has crossed over Blueacre in order to reach the highway that runs perpendicular to the land. Greenacre does not have its own access to the highway. Walker Treatment Inc. uses the highway to pick up hazardous waste from all over the county and processes it at its treatment center. Occasionally, customers will transport their hazardous waste to Walker Treatment and cross over Blueacre. Rick and Michonne Grimes have decided to purchase and develop Blueacre. They have plans to build a large shopping mall and high-end condos near the highway to attract commuters. They are also going to construct a large sound barrier wall to help improve the ascetics of the mall and condos Walker Treatment Inc. has now come to the Grimes asking for an easement to transport hazardous materials over Blueacre in order to reach their facility on Greenacre. After consulting their attorney, Rick and Michonne realize that Walker Treatment Inc. is entitled to an "easement by necessity," because Greenacre is landlocked and has no access to the public highway. The Grime's have decided to grant the easement, however, they want to include an indemnity clause in the agreement. Write up a full indemnity agreement between the two parties (1-2 pagesPlease consider the following factors when you draft the agreement: 1) What protections should the Grimes' include in the indemnity clause? Remember to consider various risks ie: overturned trucks, potholes in the road etc. 2) What damages and losses are covered should be covered? 3) Is there a cap on liability? What is the amount? 4) What obligations do the Grimes' have in maintaining the road? Who is responsible for snow removal? 5) Is insurance required? By whom? 6) Will there be a reduction in liability of the owner was partially at fault? (consider comparative negligence) 7) Can third parties use the easement? To what extent? How often? 8) What will cause these obligations to "trigger"? Any accident or loss? Or only if a claim is filed against the Grimes'? 9) Is this easement free or is there a purchase price? How will it be paid? Next, take a look at your indemnification agreement and answer the following questions in a few paragraphs: 1) Is the agreement fair? Are the obligations reasonable or are they one-sided? Why or why not? 2) If you were the attorney for Walker Treatment Inc. what changes would you propose to the agreement? Chapter 23 Assignment: Shifting Losses Chapter 23 deals with indemnities. After reading the chapter, please read the following prompt then draft an indemnity agreement for the following scenario: Billionaire real estate mogul Glenn Rhee owns two large parcels of land in Alexandria, VA: Greenacre and Blueacre. Greenacre is to the north and Blueacre is directly south. Both parcels of land are surrounded by protected conservation land. A state highway runs perpendicular to the properties. Greenacre Owned by Walker Treatment Inc. Blueacre Owned by Grimes Highway - - - - - - - - - - - - - Six years ago, Mr. Rhee decided to leave the real estate business and open a chain of pizza restaurants called "Maggie's Slice." Greenacre was quickly purchased by Walker Treatment Inc., which is a hazardous materials treatment center. For the past six years Walker Treatment Inc. has crossed over Blueacre in order to reach the highway that runs perpendicular to the land. Greenacre does not have its own access to the highway. Walker Treatment Inc. uses the highway to pick up hazardous waste from all over the county and processes it at its treatment center. Occasionally, customers will transport their hazardous waste to Walker Treatment and cross over Blueacre. Rick and Michonne Grimes have decided to purchase and develop Blueacre. They have plans to build a large shopping mall and high-end condos near the highway to attract commuters. They are also going to construct a large sound barrier wall to help improve the ascetics of the mall and condos Walker Treatment Inc. has now come to the Grimes asking for an easement to transport hazardous materials over Blueacre in order to reach their facility on Greenacre. After consulting their attorney, Rick and Michonne realize that Walker Treatment Inc. is entitled to an "easement by necessity," because Greenacre is landlocked and has no access to the public highway. The Grime's have decided to grant the easement, however, they want to include an indemnity clause in the agreement. Write up a full indemnity agreement between the two parties (1-2 pagesPlease consider the following factors when you draft the agreement: 1) What protections should the Grimes' include in the indemnity clause? Remember to consider various risks ie: overturned trucks, potholes in the road etc. 2) What damages and losses are covered should be covered? 3) Is there a cap on liability? What is the amount? 4) What obligations do the Grimes' have in maintaining the road? Who is responsible for snow removal? 5) Is insurance required? By whom? 6) Will there be a reduction in liability of the owner was partially at fault? (consider comparative negligence) 7) Can third parties use the easement? To what extent? How often? 8) What will cause these obligations to "trigger"? Any accident or loss? Or only if a claim is filed against the Grimes'? 9) Is this easement free or is there a purchase price? How will it be paid? Next, take a look at your indemnification agreement and answer the following questions in a few paragraphs: 1) Is the agreement fair? Are the obligations reasonable or are they one-sided? Why or why not? 2) If you were the attorney for Walker Treatment Inc. what changes would you propose to the agreement