Iowa Code § 554.3119

Notice of right to defend action
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In an action for breach of an obligation forwhich a third person isanswerable over pursuant to this Article or Article 4, the defendant may give the third person written notice of the litigation, and the person notified may then give similar notice to any other person who is answerable over. Ifthe notice states that the person notifiedmay come in and defend and that failure to do so will bind the person notified in an action later brought by the person giving the notice as to any determination of fact common to the two litigations, the person notified isso bound unless after seasonable receipt ofthe notice the person notified does come in and defend.

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