Coulter v. Dayton Power Light Company

731 N.E.2d 1172, 134 Ohio App. 3d 620
CourtOhio Court of Appeals
DecidedJuly 30, 1999
DocketC.A. Case No. 17602. T.C. Case No. 95-0985.
StatusPublished
Cited by5 cases

This text of 731 N.E.2d 1172 (Coulter v. Dayton Power Light Company) is published on Counsel Stack Legal Research, covering Ohio Court of Appeals primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Coulter v. Dayton Power Light Company, 731 N.E.2d 1172, 134 Ohio App. 3d 620 (Ohio Ct. App. 1999).

Opinion

Wolff, Judge.

The Dayton Power & Light Co. (“DP&L”) appeals from a judgment of the Montgomery County Court of Common Pleas, which entered judgment in favor of the Ohio Bell Telephone Co. (“Ohio Bell”), in a dispute over the applicability of a contractual indemnification provision.

The facts giving rise to this appeal are as follows.

*622 In 1993, DP&L granted Ohio Bell an easement to use DP&L’s land to install a fiber-optic cable. In the agreement, Ohio Bell agreed to indemnify DP&L for any loss, damage, or expense related to the easement. Two workers were subsequently injured while excavating the site, allegedly because DP&L had failed to adequately mark buried gas and electric lines, and the workers filed suit. DP&L filed a cross-claim against Ohio Bell based on the indemnification provision. DP&L filed a motion for summary judgment on the issue of indemnification, and the trial court denied the motion on May 20, 1997. On August 18, 1997, when other claims were still pending in the case, the trial court denied a DP&L motion for reconsideration and refused to grant Civ.R. 54(B) certification to its May 20, 1997 judgment entry denying summary judgment. The other claims were later settled so that the sole remaining issue in the case was whether DP&L was entitled to indemnification from Ohio Bell. At that point, the trial court concluded that it would make “no sense and would not be judicially economical now to have a trial on comparative negligence with an ‘automatic’ appeal of the indemnification issue” to the court of appeals. The court granted Civ.R. 54(B) certification on its May 20, 1997 order nunc pro tunc and “enter[ed] final judgment in favor of Ohio Bell on the indemnification question.”

DP&L raises one assignment of error on appeal:

“The trial court erred to the prejudice of DP&L by improperly denying DP&L’S motion for summary judgment.”

DP&L’s argument under this assignment of error is threefold. First, DP&L claims that the trial court erred in concluding that the scope of the indemnification provision was ambiguous and that two sophisticated business entities cannot contractually allocate responsibility for damages resulting from the negligence of one party to the other party. Second, DP&L claims that the trial court erred in relying upon R.C. 2305.31 in concluding that the contractual indemnification provision was against public policy. Third, DP&L contends that, even if the indemnification provision was void as applied to damages resulting from its own negligence, DP&L was nonetheless entitled to indemnification for its attorney fees and costs.

The indemnification provision in the easement provides:

“In consideration for the [easement], [Ohio Bell] hereby agrees to indemnify and save [DP&L] free and harmless from any and all loss, damage, or expense, including but not restricted to attorneys fees and court costs, arising from, caused by or incident or related to, injuries or damages to property (including property of [Ohio Bell]) or persons or the death of any person or persons, including but not restricted to employees and agents of the Owners, in the performance of their duties or otherwise; which may arise out of or be incident or related in any way *623 to the easement described above on [DP&L’s] premises, subject, however, to the provisions of Section 2305.31 of the Revised Code of Ohio, if applicable, and provided further, that nothing herein shall require indemnification as to any claims against [Ohio Bell] arising under the Ohio Workers’ Compensation Law.

“This easement is subordinate to all existing facilities of [DP&L], either above or below the surface. [DP&L] has attempted to accurately locate all of its underground facilities; however, [Ohio Bell] shall be responsible for any damage to said facilities whether accurately located or not.”

The trial court found that these provisions were ambiguous because the first paragraph required Ohio Bell to indemnify DP&L for all loss, including damages to property and bodily injury, while the second paragraph required Ohio Bell to indemnify DP&L for damage to the underground facilities if they were not properly located, but was unclear as to “whether Ohio Bell is held responsible for bodily injury if the underground facilities are inaccurately located.” (Emphasis sic.) The trial court construed the second paragraph to establish that “the entire agreement only relates to damage to the promisee’s [DP&L] own property.”

We disagree with the trial court’s finding that the provisions of the easement were ambiguous as to the allocation of responsibility for damages, whether resulting from bodily injury or damage to property. In our view, the second paragraph did not narrow the scope of the first. Rather, it elaborated on the first paragraph by making clear that Ohio Bell’s duty to indemnify included situations in which DP&L had failed to accurately locate all of its underground facilities. Moreover, the second paragraph specifically referred to underground facilities and damage thereto, which explains why there was no mention of responsibility for bodily injury in that section. The trial court’s interpretation did not recognize that the second paragraph had a narrower scope than the first and ignored the plain language of the first paragraph indicating that Ohio Bell would hold DP&L harmless “from any and all loss, damage, or expense * * * arising from, caused by or incident or related to, injuries or damages to property * * * or persons” related to the easement. Thus, we find that these paragraphs are not inconsistent and’ that the trial court erred in concluding that the indemnification provision in the easement was ambiguous.

Moreover, Ohio law does not require that contracts purporting to hold an indemnitee harmless for its own negligence contain express language to that effect. In Delco Products Div., Gen. Motors Corp. v. Dayton Forging & Heat Treating Co. (Feb. 2, 1979), Montgomery App. No. 6017, unreported, 1979 WL 155686, we held that general language providing indemnification for “all liabilities, claims or demands for injuries or damages to any person or property growing out *624 of the performance of this contract” clearly and unequivocally included negligence by the indemnitee. Id. at 10. In so holding, we observed that it “ ‘is difficult to see how more comprehensive or inclusive language could have been used. Negligence might have been spelled out specifically, but this is not required.’ ” Id. at 8, quoting Gen. Acc. Fire & Life Assur. Corp., Ltd. v. Smith & Oby Co. (C.A.6,1959), 272 F.2d 581, 585, 11 O.O.2d 346, 349.

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Bluebook (online)
731 N.E.2d 1172, 134 Ohio App. 3d 620, Counsel Stack Legal Research, https://law.counselstack.com/opinion/coulter-v-dayton-power-light-company-ohioctapp-1999.