Billionaire real estate mogul Glenn Rhee owns tow large parcels of land in Alexandria, VA: Greenacre and Blueacre. Greenacre is to the north and Blueacre is directly south. Both parcels of land are surrounded by protected conservation land. A state highway runs perpendicular to the properties.
Six years ago, Mr Rhee decided to leave the real estate business and open a chain of pizza restaurants called ”Maggies slice”.
Greenacre was quickly purchased by Walker Treatment Inc., which is a hazardous materials treatment center. For the past six years Walker Treatment Inc. has crossed over Blueacre in order to reach the highway that runs perpendicular to the land. Greenacre does not have its own access to the highway. Walked Treatment Inc. uses the highway to pick up hazardous waste from all over the country and processes it at its treatment center. Occasionally, customers will transport their hazardous waste to Walker Treatment and cross over Blueacre.
Rick and Michoone grimes have decided to purchase and develop Blue acre.They have plans to build a large shopping mall and high-end condos near the highway to attract commuters. They are also going to construct a large sound barrier wall to help improve the ascetics of the mall and condos. Walker Treatment Inc. has now come to the Grimes asking for easement to transport hazardous materials over Blueacre in order to reach their facility on Greenacre. After consulting their attorney, Rick and Michonne realize that Walker Treatment Inc is entitled to an “easement by necessity,” because Greenacre is landlocked and has no access to the public highway. The Grime’s have decided to grant the easement; however, they want to include clause in agreement.
Please answer all of the following:
1. What protections should the Grimes include in the indemnity clause? Remember to consider various risks ie: overturned trucks, potholes in the road etc.
2. What damages and losses are covered should be covered?
3. Is there a cap on liability? What is the amount?
4. What obligations do the Grimes have in maintaining the road? Who is responsible for snow removal?