SDCL § 56-3-14: Application of stipulation as to conclusiveness of judgment against person indemnified upon indemnitor.

A stipulation that a judgment against the person indemnified shall be conclusive upon the person indemnifying, is inapplicable, unless a contrary intention appears, if the person indemnified had a good defense upon the merits, which, by want of ordinary care, he failed to establish in the action.