Bush Terminal Buildings Co. v. Luckenbach Steamship Co.

11 A.D.2d 220, 202 N.Y.S.2d 172, 1960 N.Y. App. Div. LEXIS 8652
CourtAppellate Division of the Supreme Court of the State of New York
DecidedJuly 5, 1960
StatusPublished
Cited by8 cases

This text of 11 A.D.2d 220 (Bush Terminal Buildings Co. v. Luckenbach Steamship Co.) is published on Counsel Stack Legal Research, covering Appellate Division of the Supreme Court of the State of New York primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Bush Terminal Buildings Co. v. Luckenbach Steamship Co., 11 A.D.2d 220, 202 N.Y.S.2d 172, 1960 N.Y. App. Div. LEXIS 8652 (N.Y. Ct. App. 1960).

Opinions

Breitel, J.

Defendant Luckenbach appeals from an order dismissing its cross claims against defendants Atlantic and Muehlstein as legally insufficient. Involved on the appeal is the much litigated question of the right to indemnity based on distinctions between “ active ” and “ passive negligence, or, better, between primary and secondary negligence.

Plaintiffs sue for property damages resulting from a fire and explosion at the Luckenbach steamship pier. Luckenbach had engaged Atlantic to repair some equipment. In the course of the work, Atlantic used oxyacetylene torches. Sparks or molten metal from the torch work ignited rubber scrap which had spilled from insecurely packed burlap bags delivered to the pier for shipment by Muehlstein. The fire spread rapidly to Primacord or detonating fuses in the vicinity and the explosion followed.

The original or prime complaint alleged that Luckenbach bad full knowledge that the rubber scrap was scattered about the pier or should have had such knowledge in the exercise of reasonable care. It also alleged that Atlantic was using the torches with the knowledge and consent of Luckenbach and that Luckenbach knew, or in the exercise of reasonable care should have known, of the inherent danger in the torch operations. It further alleged that Luckenbach took no action to stop the operations and negligently stored the combustible rubber scrap and explosives in the vicinity. The complaint also alleged, in substance, that Luckenbach knew, or was chargeable with knowledge, that the pier-stored rubber scrap and explosives were combustible and explosive.

Luckenbach’s answer, as amended, contained two cross claims against Atlantic and two cross claims against Muehlstein. It alleged that both Atlantic and Muehlstein had been guilty of [223]*223‘ primary, active and affirmative negligence ’ ’ and sought recovery from each of them based on implied rights of indemnity. The answer also alleged that Atlantic had expressly agreed to indemnify Luckenbach for all losses resulting from Atlantic’s breach of the contract to repair the equipment. The answer also alleged that Muehlstein had expressly agreed to indemnify Luckenbach for all losses resulting from Muehlstein’s breach of the contract of carriage.

Special Term held that the prime complaint did not contain any allegations of “ passive ” negligence on the part of Luckenbach, and therefore dismissed both cross claims based on implied rights of indemnity. The cross claim against Muehlstein based on the express contract of indemnification was dismissed on the ground that the contract covered only damages to ship and cargo. The cross claim against Atlantic based on the express contract of indemnification was also dismissed (but with leave to replead) on the ground that there was a dispute as to the terms of the contract, which contract was not before the court.

The principles in the field are sometimes difficult to apply. Since it appears, however, that, as among the defendants, either Muehlstein or Atlantic, or perhaps both of them, may be primarily responsible for the accident, the two cross claims of Luckenbach based on implied rights of indemnity should be sustained as legally sufficient. The two cross claims based on the express contracts of indemnity were properly dismissed (but there should be leave to replead as to both) on the ground that in neither cross claim has Luckenbach alleged facts establishing that either Atlantic or Muehlstein undertook to indemnify Luckenbach for its own wrongful acts.

Under current terminology, apart from an express contract of indemnity, a defendant guilty of “ active ” negligence may not claim over against another who has also Avrongfully contributed to the accident. The most such a defendant may obtain is the right to look to the other for contribution upon payment of more than a prorata share of a joint judgment (Civ. Prac. Act, § 211-a; Fox v. Western N. Y. Motor Lines, 257 N. Y. 305). What this really means is that if two or more joint tortfeasors, by their respective AAWongful conduct, concur in producing the accident, and no one owed any ‘ ‘ independent duty or obligation ” to another of the joint tort-feasors (see McFall v. Compagnie Maritime Belge, 304 N. Y. 314, 331) to prevent the accident to the injured plaintiff, then no implied right of indemnity arises among the tort-feasors, int&r se.

[224]*224A defendant guilty merely of ‘ ‘ passive ’ ’ negligence, however, may claim over against another who is guilty of “ active ” negligence. In so doing, such a defendant does not sue directly for the damages sustained by the injured party as the result of the accident. Bather, he obtains indemnity for the damages, in terms of the liability he has sustained by reason of his satisfaction of plaintiff’s direct damages. Thereby the ultimate burden of his own responsibility (i.e. liability) to the prime plaintiff is shifted to the one who owed him a duty to prevent the accident and — thus also to prevent the liability incurred to the prime plaintiff.

Such defendant is permitted to do this because as between himself and the other defendant, the other is primarily responsible (Wischnie v. Dorsch, 296 N. Y. 257; Phoenix Bridge Co. v. Creem, 102 App. Div. 354, affd. 185 N. Y. 580; Restatement, Restitution, §§ 94, 95). The claim over is permitted on the ground that the public policy against granting relief to a person in pari delicto is not violated. Put still another way, although the third-party defendant has breached a duty to the prime plaintiff for which it is liable to him, it has also breached an “ independent ” duty to the third-party plaintiff which breach occasioned damage to the third-party plaintiff to the extent that the latter was cast in damages in favor of the prime plaintiff.

All students of the subject do not agree that the implied right to indemnity stems from a duty owed by the indemnitor to the indemnitee (see, e.g., n.: Contribution and Indemnity Among Tortfeasors in Minnesota, 37 Minn. L. Rev. 470, 475 et seq.; Davis: Indemnity Between Negligent Tort-feasors, 37 Iowa L. Rev. 517, 545-546). But it would seem, in the simplest terms, that the ‘£ right ” to indemnity must be posited on a “ duty” owned to the indemnitee. True, at this point one must avoid begging the question and go on to consider the underlying fact relationships which the courts recognize as creating the implied duty (see Leflar, Contribution and Indemnity Between Tortfeasors, 81 Univ. of Pa. L. Rev. 130, 146 et seq.; Davis, op. cit., 37 Iowa L. Rev. 517). These relationships do not fall into easily defined categories, but there is no reason why they should.

In many cases it is quite easy to determine whether a defendant has been charged with, or is guilty of, negligence which will debar or allow an implied right to indemnity from a joint tortfeasor. Thus one finds little difficulty in sustaining a claim by the master against his servant where the master has been held liable to plaintiff, solely on the basis of respondeat superior, and the servant alone committed the wrongful act for which the [225]*225master has suffered, liability to the prime plaintiff (Opper v. Tripp Lake Estates, 274 App. Div. 422, affd. 300 N. Y. 572; Restatement, Restitution, § 96).

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Bluebook (online)
11 A.D.2d 220, 202 N.Y.S.2d 172, 1960 N.Y. App. Div. LEXIS 8652, Counsel Stack Legal Research, https://law.counselstack.com/opinion/bush-terminal-buildings-co-v-luckenbach-steamship-co-nyappdiv-1960.