American Cyanamid Co. v. Campbell Construction Co.

864 F. Supp. 580, 1994 U.S. Dist. LEXIS 14652, 1994 WL 562610
CourtDistrict Court, S.D. Mississippi
DecidedSeptember 27, 1994
Docket2:92-cv-00265
StatusPublished
Cited by1 cases

This text of 864 F. Supp. 580 (American Cyanamid Co. v. Campbell Construction Co.) is published on Counsel Stack Legal Research, covering District Court, S.D. Mississippi primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
American Cyanamid Co. v. Campbell Construction Co., 864 F. Supp. 580, 1994 U.S. Dist. LEXIS 14652, 1994 WL 562610 (S.D. Miss. 1994).

Opinion

MEMORANDUM OPINION AND ORDER

WINGATE, District Judge.

Before the court is the plaintiffs motion for partial summary judgment filed pursuant to Rule 56(a) and (c), 1 Federal Rules of Civil Procedure. The disputed question here is whether the defendant, Campbell Construction Company (hereinafter “Campbell”), is obligated by contract to indemnify the plaintiff, American Cyanamid Company (hereinafter “American Cyanamid”), for American Cyanamid’s costs and expenses in defending a personal injury lawsuit brought against American Cyanamid by a Campbell employee injured at the American Cyanamid plant while working under a construction contract between the parties. This court has jurisdiction over this lawsuit pursuant to diversity of citizenship, 28 U.S.C. § 1332. 2 Although defendant Campbell opposes the motion, this court is persuaded to grant it.

FACTS

On February 13, 1987, American Cyanamid and Campbell entered into a construction contract (“the Contract”) in connection with the construction of an addition to American Cyanamid’s Pearl, Mississippi, plant. Article II of the Contract provides that Campbell will indemnify American Cyanamid against “any and all claims, losses, demands, causes of action and any and all related costs and expense, of every kind and character including, without limitation, reasonable attorneys’ fees ... on account of personal injuries or death ... growing out of, incident to, or resulting directly or indirectly from the performance by [CAMPBELL] hereunder, whether such loss, damage, injury or liability is contributed to by the negligence of CYAN-AMID ... or by premises themselves or any equipment thereon ... or from other causes whatsoever; except that [CAMPBELL] shall have no liability for damages or the costs incident thereto caused by the sole negligence of CYANAMID.”

*582 On April 22, 1987, Michael Allen Gray, a Campbell employee, was injured when he fell from a platform or “super structure” when a guard rail gave way. This super structure and guard rail were a part of the original construction of the American Cyanamid plant in Pearl, Mississippi.

On April 10,1990, Michael Allen Gray filed suit in this court against American Cyanamid for injuries he sustained in his April 22,1987, fall. That action was filed, “Michael Allen Gray v. American Cyanamid Company, United States District Court for the Southern District of Mississippi, Jackson Division, Civil Action No. J90-0167(B).” Gray alleged that his fall and resultant injuries were caused by the negligence of American Cyan-amid. American Cyanamid denied these allegations and averred that Gray’s injuries were the result of his own negligence or that of Campbell, his employer. No party here denies that American Cyanamid incurred attorneys’ fees and other expenses in defending the Gray action at both the trial and appellate levels.

After the complaint was filed against American Cyanamid, American Cyanamid made demands upon Campbell to assume the defense of American Cyanamid in that action based upon the indemnity provision contained in Article II. Campbell, however, refused to defend American Cyanamid, alleging that Gray’s fall had not resulted from any negligence of Campbell, but as a result of the sole negligence of American Cyanamid in the design, construction, and maintenance of the metal guard rail by American Cyanamid.

In December, 1991, the Gray action proceeded to trial before a jury, with Judge William H. Barbour, Jr., presiding. The case was submitted to the jury on special interrogatories. The jury found that American Cyanamid was negligent in some unspecified manner, but the jury also found that such negligence was not a proximate cause of Gray’s fall and resulting injuries. Pursuant to these findings by the jury, the court entered its final judgment adjudicating that the accident and Gray’s injuries and damages were not caused by any negligence on the part of American Cyanamid.

On February 10, 1992, Gray served his Notice of Appeal of the Gray action to the United States Court of Appeals for the Fifth Circuit. Proceeding under its understanding of the terms of the Contract to require Campbell to indemnify American Cyanamid for its trial and appellate costs and expenses, including reasonable attorneys’ fees consequented by the Gray action, on March 10, 1992, American Cyanamid tendered the defense of the Gray action appeal to Campbell. Campbell refused to prosecute the appeal or to indemnify American Cyanamid for all or any part of its fees, costs, and expenses.

Aggrieved over Campbell’s refusal to indemnify it, American Cyanamid filed this action for damages and for declaratory judgment on May 7, 1992. American Cyanamid demands: (1) a judgment in its favor against Campbell in the amount of $334,099.54, the amount of attorneys’ fees and other costs and expenses allegedly incurred by it to that point in defending the Gray action, plus prejudgment interest, and interest on the entire amount from the date of judgment until paid; (2) a judgment in its favor against Campbell for extra-contractual damages in an amount to be determined at the trial of this action; (3) a judgment in its favor against Campbell adjudicating and declaring that Campbell is required to indemnify American Cyanamid against all costs and expenses, including reasonable attorneys’ fees, incurred by American Cyanamid in defending the appeal of Michael Allen Gray from the final judgment and orders of this court in Civil Action No. J90—0167(b); (4) retention of jurisdiction of this action to fix and determine the amount to which American Cyanamid is entitled upon the conclusion of said appeal; and (5) for such other relief as the court may deem appropriate.

On June 22, 1993, this court stayed this action pending the outcome of the appeal of Gray v. American Cyanamid in the United States Court of Appeals for the Fifth Circuit.

On May 17, 1994, the Fifth Circuit handed down its decision, affirming the district court. The Fifth Circuit meticulously reviewed the evidence in the case and held that the evidence was sufficient to support the jury’s verdict that while American Cyanamid was *583 negligent, that negligence was not the proximate cause of Gray’s accident. The Fifth Circuit found Gray’s other complaints to be without merit.

Upon being notified that Gray v. American Cyanamid had been decided, this court thereafter lifted its stay of the action sub judice and undertook a consideration of plaintiff’s motion for partial summary judgment.

SUMMARY JUDGMENT STANDARD

Rule 56(c) of the Federal Rules of Civil Procedure states in pertinent part:

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Cite This Page — Counsel Stack

Bluebook (online)
864 F. Supp. 580, 1994 U.S. Dist. LEXIS 14652, 1994 WL 562610, Counsel Stack Legal Research, https://law.counselstack.com/opinion/american-cyanamid-co-v-campbell-construction-co-mssd-1994.