28-11-317: When judgment not conclusive against person indemnifying.

(1) If the person indemnifying, whether the person is a principal or a surety in the agreement, does not have reasonable notice of the action or proceeding against the person indemnified or is not allowed to control the person indemnified's defense, judgment against the person indemnified is only presumptive evidence against the person indemnifying.

(2) A stipulation that a judgment against the person indemnified is conclusive upon the person indemnifying is inapplicable if the person indemnifying had a good defense upon the merits that by want of ordinary care the person indemnified failed to establish in the action.