If, after request, the person indemnifying neglects to defend the person indemnified, unless a contrary intention appears, a recovery against the latter suffered by him in good faith, is conclusive in his favor against the former.

Source: SDC 1939, § 31.3107 (5); repealed SL 1966, ch 111 , § 5; re - enacted SL 1967, ch 235 , § 7 (5).