28-11-317. When judgment not conclusive against person indemnifying. (1) If the person indemnifying, whether he 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 his defense, judgment against the latter is only presumptive evidence against the former.
     (2) A stipulation that a judgment against the person indemnified shall be conclusive upon the person indemnifying is inapplicable if he had a good defense upon the merits which by want of ordinary care he failed to establish in the action.

     History: En. Sec. 3586, Civ. C. 1895; re-en. Sec. 5654, Rev. C. 1907; re-en. Sec. 8169, R.C.M. 1921; Cal. Civ. C. Sec. 2778; Field Civ. C. Sec. 1530; re-en. Sec. 8169, R.C.M. 1935; R.C.M. 1947, 30-307(6), (7).