Allison Steel Manufacturing Co. v. Superior Court

523 P.2d 803, 22 Ariz. App. 76, 1974 Ariz. App. LEXIS 411
CourtCourt of Appeals of Arizona
DecidedJune 27, 1974
Docket2 CA-CIV 1623
StatusPublished
Cited by32 cases

This text of 523 P.2d 803 (Allison Steel Manufacturing Co. v. Superior Court) is published on Counsel Stack Legal Research, covering Court of Appeals of Arizona primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Allison Steel Manufacturing Co. v. Superior Court, 523 P.2d 803, 22 Ariz. App. 76, 1974 Ariz. App. LEXIS 411 (Ark. Ct. App. 1974).

Opinion

OPINION

HATHAWAY, Chief Judge.

This special action challenges the propriety of denying petitioner’s motion for summary judgment on a third party complaint filed against it by the respondent real parties in interest, defendants in a pending lawsuit for personal injuries. If, as contended by petitioner, it was entitled to summary judgment on the third party complaint, appellate intervention via this special action procedure is appropriate. Chrysler Corporation v. McCarthy, 14 Ariz.App. 536, 484 P.2d 1065 (1971); Allison Steel Mfg. Co. v. Superior Court, 20 Ariz.App. 185, 511 P.2d 198 (1973).

Briefly, the posture of the litigation below is as follows. In February, 1971, plaintiff Salcido filed an amended complaint against various defendants including the real parties in interest. The complaint alleged that the plaintiff was employed by petitioner and was working on a construe *78 tion project in which petitioner was a subcontractor and Sundt Construction was the prime contractor; that Stecker and Klingerman were employees of Sundt working at the construction site; that Hindeman and Farr were workers at the construction site; and that said defendants negligently and carelessly operated, maintained and controlled the construction site, failed to observe safety standards and rules, and negligently operated a crane resulting in severe injuries to the plaintiff.

Eleven months later a third party complaint was filed against petitioner setting forth two counts. Count One on behalf of all defendants alleged that pursuant to the provisions of a subcontract agreement between Sundt and petitioner, defendants were entitled to be indemnified if they, or any one of them, were found to be liable to the plaintiff.

Count Two of the third party complaint set forth a claim only by Sundt, Klingerman and Stecker. It further alleged that if said defendants, or any of them, were held liable to the plaintiff, such liability would arise because of the active and primary negligence of petitioner and its employees and not because of any active fault or active participation by said defendants in the conduct causing injury to the plaintiff, hence they would be entitled to be indemnified by petitioner. Cross-motions for summary judgment were filed and it was stipulated between the third party plaintiffs and the third party defendants that the court might consider, in ruling on the motion, a .document entitled “AIA Document A 201 General Conditions of the Contract for Construction" and the document entitled “Subcontract Agreement” attached to a memorandum submitted below. Both motions for summary judgment were denied and petitioner now contends the denial of its motion was erroneous in that (1) the contractual provisions for indemnity did not include the right to indemnification for negligent acts of the indemnitee and (2) the negligent conduct on the part of the defendants asserted by the plaintiff was not the type which would qualify for indemnity. 1

The subcontract agreement between Sundt Construction and Allison Steel provided in pertinent part:

“ . . . Subcontractor agrees to bind and obligate himself, in the performance of this Subcontract, to the Contractor by the same terms, conditions, undertakings and obligations that the Contractor is bound and obligated to the Owner by the Principal Contract insofar as the terms thereof shall not be in conflict with the terms hereof.”

Section 16 of the subcontract entitled “Additional Requirements” contains a provision whereby the subcontractor agreed to hold harmless the owner and contractor, their agents and employees, from “all liability, penalties, losses, damages, costs, expenses, causes of action, claims or judgments resulting from injury, harm or death to any person . . . arising out of, sustained or in any way connected with the performance of work under this Subcontract, or the furnishing of services, labor, equipment and materials by Subcontractor”. The subcontractor agreed to indemnify the contractor for any claim for injuries to the subcontractor’s employees “resulting from any cause whatsoever”, and further agreed:

“(g) that he shall assume toward the Contractor all the obligations and responsibilities that the Contractor assumes toward the Owner, as set forth in the Principal Contract, General and Special Conditions, Drawings, Specifica *79 tions and other documents hereinabove referred to, insofar as applicable, generally 'or specifically, to the materials to be furnished, the work to be performed and the responsibilities to be assumed under this Subcontract.”

A provision of the principal contract between the owner and the contractor, provided :

“4.18 Indemnification
4.18.1 The Contractor shall indemnify and hold harmless the Owner and the Architect and their agents and employees from and against all claims, damages, losses and expenses including attorneys’ fees arising out of or resulting from the performance of the Work, provided that any such claim, damage, loss or expense (a) is attributable to bodily injury, sickness, disease or death, or to injury to or destruction of tangible property (other than the Work itself) including the loss of use resulting therefrom, and (b) is caused in whole or in part by any negligent act or omission of the Contractor any Subcontractor, anyone directly or indirectly employed by any of them or anyone for whose acts any of them may be liable, regardless of whether or not it is caused in part by a party indemnified hereunder.” (Emphasis supplied)

Petitioner contends that the subcontract agreement does not include indemnity for losses occasioned by the negligence of Sundt and/or its employees — therefore, its motion for summary judgment on Count One of the third party complaint, based on contract, should have been granted. The real parties in interest, on the other hand, maintain that since § 4.18.1 of the general conditions, supra, was incorporated into the subcontract agreement, petitioner could be required to indemnify for losses occasioned by an indemnitee’s negligence so long as the indemnitee’s negligence was not the ' sole cause of injury.

In this jurisdiction, we are committed to the rule that a contract of indemnity will not be construed to cover losses to the indemnitee caused by his own negligence unless the intention is expressed in clear and unequivocal terms. Southern Pacific Company v. Gila River Ranch, Inc., 105 Ariz. 107, 460 P.2d 1 (1969); Royal Properties, Inc. v. Arizona Title Ins. & Tr. Co., 13 Ariz.App. 376, 476 P.2d 897 (1970); Allison Steel Mfg. Co. v. Superior Court, supra.

Petitioner has cited to us the California Supreme Court decision of Goldman v. Ecco-Phoenix Electric Corp., 62 Cal.2d 40, 41 Cal.Rptr. 73, 396 P.2d 377

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Bluebook (online)
523 P.2d 803, 22 Ariz. App. 76, 1974 Ariz. App. LEXIS 411, Counsel Stack Legal Research, https://law.counselstack.com/opinion/allison-steel-manufacturing-co-v-superior-court-arizctapp-1974.