Arnold v. Stupp Corporation

205 So. 2d 797
CourtLouisiana Court of Appeal
DecidedMarch 8, 1968
Docket7183
StatusPublished
Cited by48 cases

This text of 205 So. 2d 797 (Arnold v. Stupp Corporation) is published on Counsel Stack Legal Research, covering Louisiana Court of Appeal primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Arnold v. Stupp Corporation, 205 So. 2d 797 (La. Ct. App. 1968).

Opinion

205 So.2d 797 (1967)

Claude ARNOLD, Plaintiff,
v.
STUPP CORPORATION and the Travelers Indemnity Company, Defendants, Third-Party Plaintiffs, Appellants,
v.
CHARLES CARTER & CO., Inc. and Manhattan Fire & Marine Insurance Company, Third-Party Defendants, Appellees.

No. 7183.

Court of Appeal of Louisiana, First Circuit.

December 19, 1967.
Rehearing Denied January 29, 1968.
Writ Refused March 8, 1968.

*798 Frank M. Coates, Jr., of Taylor, Porter, Brooks, Fuller & Phillips, Baton Rouge, for Stupp Corporation and The Travelers Indemnity Co.

John V. Parker, of Sanders, Miller, Downing & Kean, Baton Rouge, for Charles Carter & Co., Inc., third party defendants-appellees.

Before LOTTINGER, SARTAIN and ELLIS, JJ.

SARTAIN, Judge.

This appeal is by third party plaintiffs, Stupp Corporation (Stupp) and the Travelers Indemnity Company (appellants) following a decision by the district judge which sustained a peremptory exception of no cause of action filed by third party defendants, Charles Carter & Company, Inc., (Carter) and Manhattan Fire & Marine Insurance Company (appellees).

The instant controversy grows out of a suit instituted by Claude Arnold, an employee of Carter, against appellants for personal injuries sustained by Arnold at Stupp's plant in Baton Rouge. Arnold's petition alleges that on the date of the accident, he fell from a ladder belonging to Stupp and that Stupp's negligence was the sole and proximate cause of the accident and his injuries.

Stupp, a manufacturer of steel lined pipe, entered into a contract on March 29, 1965 with Carter, a building contractor, whereby Carter was to replace certain existing bolts in Stupp's main plant buildings, crane runways and appurtenant structures. The accident occurred on April 20, 1965.

Stupp filed a third party petition alleging that its contract with Carter provides for the latter to hold Stupp free and harmless against the type of liability urged by Arnold. Said contract provides as follows:

"Charles Carter & Company, Inc. agrees to defend, indemnify and save harmless Stupp Corporation and Stupp Bros. Bridge & Iron Company against any and *799 all liability, damage, costs, fees and other losses of whatever nature on account of any injury to person or persons, or any damage to any property arising out of, caused by or resulting from the sale, handling, loading or use of any materials purchased from Stupp Corporation by Charles Carter & Company, Inc., or caused by or resulting from any business transaction with or work done for Stupp Corporation and/or Stupp Bros. Bridge & Iron Company by Charles Carter & Company, Inc."

Carter and its liability insurer filed a peremptory exception to Stupp's third party petition, which peremptory exception was sustained. On the appeal now before us appellants contend (1) that the trial judge erred in failing to find that the above quoted indemnity agreement covered all liability of appellants, including liability for damages caused by negligence imputable to appellants, and alternatively (2) the lower court erred in dismissing appellees third party demand on a peremptory exception of no cause of action, thereby denying appellants the right to introduce evidence to establish the intent of the parties.

The above quoted indemnity agreement and others similar to it have been the subject of much litigation out of which has evolved, as expected, a general rule with exceptions, including majority and minority adherence.

The general rule is stated thus: "A contract of indemnity will not be construed to indemnify the indemnitee against losses resulting to him through his own negligent acts, where such intention is not expressed in unequivocal terms. 27 Am.Jr., Indemnity, § 15, page 464; 42 C.J. S. Indemnity § 12, page 580." The established principle supporting the rule is that general words alone, i. e., "any and all liability", do not necessarily import an intent to impose an obligation so extraordinary and harsh as to render an indemnitor liable to an indemnitee for damages occasioned by the sole negligence of the latter.

The minority view is bottomed on the premise that the words "any and all liability" are unambiguous and the use thereof means just that and the restrictive interpretation adhered to in the majority view is violative of the rule of law that a contract freely entered into, which is not against public policy or prohibited by law, is the law between the parties and subject to judicial recognition and enforcement. 77 A.L.R.2d 1134.

For reasons hereinafter stated we are of the opinion and so hold that Louisiana is committed to the majority view. Motor Sales & Service v. Grasselli Chemical Company, 15 La.App. 353, 131 So. 623; (Orl.App., 1930); Buford v. Sewerage & Water Board of New Orleans, 175 So. 110 (Orl.La.App., 1937); Dorman v. T. Smith and Son, Inc., 55 So.2d 587 (Orl.La.App., 1951); Moore v. Liberty Mutual Insurance Co., La.App., 149 So.2d 192 (3rd Cir., 1963); Brady v. American Insurance Co., 198 So.2d 907 (4th Cir., 1967).

In Motor Sales & Service v. Grasselli Chemical Co., supra, plaintiff sought to recover for property damage to its automobile occasioned by sulphuric acid that was negligently released from drums which were being transported on one of defendant's trucks which was under lease to and being operated at the time by A. J. Peter, a public drayman. Defendant sought to recover judgment against Peter for the amount of plaintiff's judgment by virtue of an indemnity agreement executed in its favor by Peter, which provided in part: (131 So. p. 625)

"* * * I/we hereby agree to hold and save The Grasselli Chemical Company, its agents, officers and employees harmless from any loss, damage or liability which it may suffer, or be about to suffer from any claims, demands, action or causes of action which may be made or had against it by reason of the use, maintenance or operation of said auto trucks, teams or wagons, or by virtue of any accident or injury involving the said *800 trucks, or teams and wagons, or services of the said chauffeur, driver, teamster, or helper; and I/we further agree to protect ourselves and the said The Grasselli Chemical Company by carrying liability and property damage insurance on said trucks or teams and wagons in the amount of $5,000.00." (Emphasis ours)

In rejecting defendant's contention, the court stated: (p. 625)

"* * * The intention of the parties thereto was that Peter should indemnify the Grasselli Company against any loss which might result from his negligence, which, if suffered by third persons, might be legally chargeable to the Grasselli Company. Here the negligence was wholly chargeable to the latter company, and Peter was in no way responsible either directly to plaintiff or to defendant under the indemnity contract above set forth." (Emphasis ours)

In Buford v. Sewerage and Water Board, supra, defendant had entered into a contract with Thomas H. Brockman, whereby the latter was to install certain sewerage mains for the Board. Plaintiff, an employee of Brockman, was injured on the job site through the negligence of defendant. Defendant and Brockman had entered into an indemnity agreement, the pertinent clause of which read as follows: (175 So. p. 112)

"* * * shall fully secure and protect the said Sewerage and Water Board, its legal successors and representatives

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205 So. 2d 797, Counsel Stack Legal Research, https://law.counselstack.com/opinion/arnold-v-stupp-corporation-lactapp-1968.