South Dakota Code § 56-3-14

Application of stipulation as to conclusiveness of judgment against person indemnified upon indemnitor
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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.

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