Damnification

Damnification \Dam`ni*fi*ca"tion\, n. [LL. damnificatio.]
   That which causes damage or loss.
   [1913 Webster]
    

DAMNIFICATION. That which causes a loss or damage to a society, or to one 
who has indemnified another. For example, when a society has entered into an 
obligation to pay the debt of the principal, and the principal has become 
bound in a bond to indemnify the surety, the latter has suffered a 
damnification the moment he becomes liable to be sued for the debt of the 
principal - and it has been held in an action brought by the surety, upon a 
bond of indemnity, that the terror of suit, so that the surety dare not go 
about his business, is a damnification. Ow. 19; 2 Chit. R. 487; 1 Saund. 
116; 8 East, 593; Cary, 26. 
     2. A judgment fairly obtained against a party for a cause against which 
another person is bound to indemnify him, with timely notice to that person 
of the bringing of the action, is admissible as evidence in an action 
brought against the guarantor on the indemnity. 7 Cranch, 300, 322. See F. 
N. B. Warrantia Chartae; Lib. Int. Index, Warrantia Chartae; 2 S. & R. 12, 
13.