publishing indemnification

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Latest post Wed, Aug 27 2014 9:55 AM by salmi. 6 replies.
  • Mon, Aug 25 2014 3:59 PM

    • salmi
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    publishing indemnification

    is a publishing house liable for legal actions agianst its imprints (subsidiaries)? 

  • Mon, Aug 25 2014 4:34 PM In reply to

    Re: publishing indemnification

    You haven't provided nearly enough information to address the question.  In particular, what sort of legal actions?

    That said, the general rule is that a parent corporation is not liable for the obligations of its subsidiaries absent a showing that the two entities are alter egos.

  • Mon, Aug 25 2014 4:49 PM In reply to

    • salmi
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    Re: publishing indemnification

    sorry. and thank you, much!

    let's say the imprint publishes a book and gets sued for defamation. if the imprint loses the action, and is unable to pay the award ordered by the court, does the parent publishing house have to pay the bill?

  • Mon, Aug 25 2014 8:30 PM In reply to

    Re: publishing indemnification

    salmi:
    let's say the imprint publishes a book and gets sued for defamation. if the imprint loses the action, and is unable to pay the award ordered by the court, does the parent publishing house have to pay the bill?

    That depends on how the "imprint" is organized in relationship to the publisher, the details of how the imprint was operated, and the state law that applies. However, let me answer the question with an example. Suppose Big Publishing Company, Inc., (BPC) is organized as a corporation and it owns a subsidiary corporation, Dark Secret Books, Inc., (DSB). DSB is in the business of publishing biographies of celebrities. One of the subjects of a biography, Peter Famous, sues DSB for defamation and wins. Generally speaking, Peter would have to look only to DSB to collect his judgment. BPC is not liable for the judgment simply because it is a shareholder in DSB. That's benefit of operating in corporate form. But there are circumstances in which BPC might be liable. If Peter can show that BPC and DSB failed to sufficiently respect the separate identities of the two corporations then the Peter might succeed in pursuing BPC under a theory of piercing the corporate veil, nominee, or alter-ego. What exactly he'd need to prove to do that depends on the applicable state law. 

  • Mon, Aug 25 2014 8:41 PM In reply to

    • salmi
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    Re: publishing indemnification

    great! again, mucho mucho for the info

    do you happen to know the title of the statute that covers this in califormia?

    please and thank you thank you!

  • Wed, Aug 27 2014 9:24 AM In reply to

    Re: publishing indemnification

    This is not a matter of statutory law.

  • Wed, Aug 27 2014 9:55 AM In reply to

    • salmi
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    Re: publishing indemnification

    OKAY. THX.

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