Azurak v. Corporate Prop. Investors

790 A.2d 956, 347 N.J. Super. 516
CourtNew Jersey Superior Court Appellate Division
DecidedFebruary 7, 2002
StatusPublished
Cited by8 cases

This text of 790 A.2d 956 (Azurak v. Corporate Prop. Investors) is published on Counsel Stack Legal Research, covering New Jersey Superior Court Appellate Division primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Azurak v. Corporate Prop. Investors, 790 A.2d 956, 347 N.J. Super. 516 (N.J. Ct. App. 2002).

Opinion

790 A.2d 956 (2002)
347 N.J. Super. 516

Mary AZURAK, Plaintiff,
v.
CORPORATE PROPERTY INVESTORS, t/a Ocean County Mall, Defendant-Respondent, and
Planned Building Services, Defendant-Appellant.

Superior Court of New Jersey, Appellate Division.

Argued November 14, 2001.
Decided February 7, 2002.

*957 Theresa E. Mullen argued the cause for appellant (Sachs, Maitlin, Fleming, Greene, Wilson & Marotte, attorneys; Ms. Mullen, on the brief).

Lawrence M. Berkeley, Livingston, argued the cause for respondent (Rubin & Fiorella, attorneys; Mr. Berkeley, on the brief).

Before Judges SKILLMAN, CARCHMAN and WELLS.

The opinion of the court was delivered by CARCHMAN, J.A.D.

In a pre-trial motion, the motion judge determined that defendant Planned Building Services (PBS) was required to indemnify defendant Corporate Property Investors (the Mall) for damages arising from the Mall's negligence as well as pay all defense costs. We conclude that the Mall is not entitled to indemnification for its own negligence under its indemnification provision absent "explicit contractual language" required by Mantilla v. NC Mall Assocs., 167 N.J. 262, 770 A.2d 1144 (2001). Accordingly, we reverse.

I.

These are the relevant facts. Plaintiff Mary Azurak was injured when she slipped on a "cheese-type substance" and fell while shopping at the Mall. Plaintiff brought an action in the Law Division and, after relevant amendments, the issue was joined with both the Mall and PBS named as party-defendants. At the time of the incident, the Mall had contracted with PBS for the latter to provide janitorial services to the Mall. The contract contained the following provision:

Contractor [PBS] shall indemnify, defend and hold harmless each Indemnitee [the Mall] from and against any claim (including any claim brought by employees of Contractor), liability, damage or expense (including attorney's fees) that such Indemnitee may incur relating to, arising out of or existing by reason of (i) Contractor's performance of this Agreement or the conditions created thereby (including the use, misuse or failure of any equipment used by Contractor *958 or its subcontractors, servants or employees) or (ii) Contractor's breach of this Agreement or the inadequate or improper performance of this Agreement by Contractor or its subcontractors, servants or employees.

Relying on the pleadings and pre-trial discovery, the motion judge granted the Mall's motion for summary judgment seeking indemnification and defense costs. The judge concluded

as a matter of law that the indemnity provision is to be construed in accordance with the rules for the construction of contracts and, hence, the judicial task here is to ascertain the intention of the parties by reading the language, the surrounding circumstances, and the object sought to be obtained under the agreement.... [P]ursuant to Vitty v. [D.C.P. Corp., 268 N.J.Super. 447, 633 A.2d 1040 (App.Div.1993) ] the cause of the claim may not be related to an act or omission in carrying out the duties required by the license and instead all that is required is that the injury or property damage grow out of or have its origins or be connected to the subject matter. And in construing the indemnity agreement doubt is required to be resolved in favor of the indemnitee.
In the case at hand, the slip and fall on the product on the floor in the common area where the plaintiff was allegedly injured grew out of, had its origin, or was in connection with the subject matter of the contract and the indemnification clause. Discovery need not disclose any other claims of negligence against CPI [the Mall] and the indemnification clause is applicable as in this case and the discovery will be the fall arose out of the duty to clean and maintain the floor. Motion is hereby granted.

[citations omitted.]

After ordering indemnification and a defense, the judge then certified the judgment as final and PBS appealed.[1] While this appeal was pending, plaintiff's cause of action was tried resulting in a judgment against the Mall and PBS. Negligence was found as against all parties—plaintiff 30%; the Mall-30%; and PBS-40%—and the jury awarded plaintiff $7,600.16, which was then molded to reflect plaintiff's comparative negligence. After computation of prejudgment interest, a judgment was entered in plaintiff's favor for $6,131.02.

II.

Subsequent to the filing of this appeal, the Supreme Court decided Mantilla. In Mantilla, the Court revisited the issue of interpretation of indemnification agreements and held "absent explicit contractual language to the contrary, an indemnitee who has defended against allegations of its own independent fault may not recover the costs of its defense from an indemnitor." 167 N.J. at 275, 770 A.2d 1144. The Court was confronted with two apparently conflicting indemnification provisions—one which appeared to require indemnification for the indemnitee's negligence and the other which did not. Observing that indemnity provisions are to construed in accordance with the rules for construction of contracts generally, id. at 272, 770 A.2d 1144, the Court restated a "bright-line" rule, which had been enunciated in other indemnification contexts, that "a contract will not be construed to indemnify the indemnitee against losses resulting from *959 its own negligence unless such an intention is expressed in unequivocal terms." Id. at 272-73, 770 A.2d 1144 (quoting Ramos v. Browning Ferris Indus. of S. Jersey, Inc., 103 N.J. 177, 191, 510 A.2d 1152 (1986) (applying the principle in construing an indemnity contract in the context of a workers' compensation case)).

The Mall relies on the "broad" versus "limited" form indemnification analysis enunciated in Doloughty v. Blanchard Constr. Co., 139 N.J.Super. 110, 117, 352 A.2d 613 (Law Div.1976). In Doloughty, the judge said:

An analysis of recent case law, both in this and other jurisdictions, indicates that indemnity provisions in construction contracts are generally of one of two types. The first of these is a broad undertaking by an indemnitor to indemnify the indemnitee in respect of any damage or injury which occurs during or in connection with or as a result of the indemnitor's performance of the contracted work. Such undertakings are usually construed, consistent with what appears to be the intent of the parties, as imposing the exclusive obligation upon the indemnitor both to defend and to respond in damages irrespective of fault and irrespective of the absence of an express undertaking to indemnify the indemnitee for its own negligence.

[Id. at 117, 352 A.2d 613 (emphasis added).]

The contractual language in Doloughty, a construction case, referred to claims "arising out of the performance" of the work. Id. at 119, 352 A.2d 613. The judge identified the contrasting type of indemnity provision as "one which is limited to risk of loss or damage resulting from the negligence or fault of the indemnitor." Id. at 118, 352 A.2d 613. Contractual language used to express this "limited" type of indemnity includes "a specific reference to the indemnitor's fault or negligence, ... [or language such as] arising from the indemnitor's `acts or omissions.'" Ibid. The judge then concluded that a court must determine:

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790 A.2d 956, 347 N.J. Super. 516, Counsel Stack Legal Research, https://law.counselstack.com/opinion/azurak-v-corporate-prop-investors-njsuperctappdiv-2002.