Darin & Armstrong v. Ben Agree Co.

276 N.W.2d 869, 88 Mich. App. 128
CourtMichigan Court of Appeals
DecidedJanuary 16, 1979
DocketDocket 78-160
StatusPublished
Cited by37 cases

This text of 276 N.W.2d 869 (Darin & Armstrong v. Ben Agree Co.) is published on Counsel Stack Legal Research, covering Michigan Court of Appeals primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Darin & Armstrong v. Ben Agree Co., 276 N.W.2d 869, 88 Mich. App. 128 (Mich. Ct. App. 1979).

Opinion

*132 N. J. Kaufman, P.J.

On February 27, 1967, Ellis Funk, an employee of Ben Agree Co., a plumbing subcontractor, was injured on the job when he fell through a hole in the roof. Funk recovered workers’ compensation benefits from Ben Agree, and then brought suit against Darin & Armstrong, Inc., the general contractor, and General Motors Corporation, the owner. Darin & Armstrong notified Ben Agree of this action and requested that Agree take over the defense. Agree refused to do so. A jury trial was then held, and a verdict was returned against General Motors Corporation and Darin & Armstrong. The Supreme Court affirmed as to Darin & Armstrong, but reversed on the basis of an instructional error as to General Motors Corporation. Funk v General Motors Corp, 392 Mich 91; 220 NW2d 641 (1974). No new trial was held because Darin & Armstrong satisfied the entire judgment.

Darin & Armstrong then brought the present action on March 24, 1976, seeking contractual and common-law indemnity from Ben Agree. In an order issued December 20, 1977, the trial court granted summary judgment to Ben Agree. GCR 1963, 117.2(1). The court’s opinion stated that since Darin & Armstrong had been found guilty of negligence in the Funk v General Motors Corp action, it was not entitled to common-law indemnity. The contractual indemnity theory was also rejected, because the court found that the provision in question did not provide specific indemnity of Darin & Armstrong against its own negligence. Darin & Armstrong now appeals as of right, challenging both of these determinations and also contending that its complaint stated a cause of action for Agree’s breach of warranties to perform the work in a safe and workmanlike manner.

*133 First, as to common-law indemnity, the party seeking such indemnity must be free from personal fault, i.e., free from active or causal negligence. Husted v Consumers Power Co, 376 Mich 41; 135 NW2d 370 (1965), Minster Machine Co v Diamond Stamping Co, 72 Mich App 58; 248 NW2d 676 (1976). Liability should fall upon the party best situated to adopt preventive measures. Dale v Whiteman, 388 Mich 698, 706; 202 NW2d 797 (1972), Minster, supra, at 62.

In the original lawsuit by Funk, Darin & Armstrong was found personally, actively negligent. In • upholding the jury verdict, the Court stated at 104:

"We regard it to be part of the business of a general contractor to assure that reasonable steps within its supervisory and coordinating authority are taken to guard against readily observable, avoidable dangers in common work areas which create a high degree of risk to a significant number of workmen.”

The above statement followed a discussion of the necessity to place "ultimate responsibility” on the general contractor for job safety, the recognition that as a practicál matter, often only the general contractor is in a position to provide safety features, and finally, the facts shown in the jury trial: That Darin & Armstrong’s project superintendent made repeated tours of the job site throughout each day, a job site where the complete absence of safety equipment for people working 30 feet above ground was "obvious to even the most casual observer”. Funk, supra, at 103. This is not "passive negligence”. See Moore v Lewis Manufacturing Co, 406 F Supp 1225, 1227 (ED Mich, 1976). To allow indemnification on these facts would be to defeat the Supreme Court’s intention in Funk.

*134 134

However, that does not end the inquiry. Since Ben Agree was not a party to the Funk lawsuit, yet seeks to apply the Funk ruling to the present case, there is a substantial question as to whether the rule of mutuality of estoppel will allow Agree to do so.

Collateral estoppel precludes relitigation of issues actually determined in a prior lawsuit between parties or their privies. Senior Accountants, Analysts & Appraisers Association v Detroit, 399 Mich 449, 458; 249 NW2d 121 (1976). But collateral estoppel does not apply unless the estoppel is mutual. Howell v Vito’s Trucking & Excavating Co, 386 Mich 37; 191 NW2d 313 (1971). Mutuality of estoppel is for all practical purposes coextensive with the requirement of identity of parties or privity. Braxton v Litchalk, 55 Mich App 708, 721; 223 NW2d 316 (1974).

As noted in Braxton, and also in DePolo v Greig, 338 Mich 703; 62 NW2d 441 (1954), well-recognized exceptions to the mutuality rule exist where there is a relationship of principal and agent, master and servant, or indemnitor and indemnitee. These exceptions are confined to the defensive assertion of collateral estoppel. Howell, supra at 46-47, fn 7. The rule with respect to indemnity was stated as follows in Anno: Judgment obtained by third person against indemnitee as conclusive against the latter, irrespective of its conclusiveness against indemnitor, in indemnitee’s action against indemnitor for amount paid in satisfaction of judgment, 24 ALR2d 329, 330:

"Irrespective of whether a judgment obtained by an injured person against an indemnitee is conclusive upon the indemnitor under the general rules governing the conclusiveness of judgments, the authorities which have considered the subject of this annotation as a distinct *135 question hold * * * that an indemnitee, in his action to recover from the indemnitor the amounts paid in satisfaction of a judgment obtained against him by an injured person, is bound by all findings without which the judgment could not have been rendered, and that, if the judgment in the earlier action rested on a fact fatal to recovery in the action over against the indemnitor, the latter action cannot be successfully maintained.”

Accord, 46 Am Jur 2d, Judgments, § 564, pp 725-726; Restatement Judgments, § 107, p 511.

In the case at bar, Darin & Armstrong’s claim is one for indemnification, and Ben Agree seeks to assert collateral estoppel defensively. The judgment against Darin & Armstrong in the prior action rested on a fact fatal to Darin & Armstrong’s recovery here, namely, Darin & Armstrong’s personal negligence. This issue has been "actually litigated” by Darin & Armstrong in a full trial on the merits. In addition, Darin & Armstrong notified Ben Agree of that action and requested Agree to take over the defense. 1 In this factual situation the court correctly dismissed the action for indemnity. Builders Supply Co v P J McCabe, 366 Pa 322; 77 A2d 368; 24 ALR2d 319 (1951). We do not see the Supreme Court’s opinion in Howell, supra, as forbidding such a result.

Next, Darin & Armstrong argues that the following provision in its contract with Ben Agree allows indemnification:

Free access — add to your briefcase to read the full text and ask questions with AI

Related

Cremer v. Hollymatic Corp.
12 S.W.3d 363 (Missouri Court of Appeals, 2000)
Petraglia v. Benincasa Const., Inc., No. Cv93 030 68 11 S (Aug. 18, 1997)
1997 Conn. Super. Ct. 12624 (Connecticut Superior Court, 1997)
Metzler v. United States
832 F. Supp. 204 (E.D. Michigan, 1993)
Lichon v. American Universal Insurance
459 N.W.2d 288 (Michigan Supreme Court, 1990)
Estate of Doyle v. Doyle
442 N.W.2d 642 (Michigan Court of Appeals, 1989)
Keil v. United States
705 F. Supp. 346 (E.D. Michigan, 1988)
Viele v. DCMA
423 N.W.2d 270 (Michigan Court of Appeals, 1988)
Duncan v. State Highway Commission
382 N.W.2d 762 (Michigan Court of Appeals, 1985)
Michigan Oil Co. v. Department of Natural Resources
384 N.W.2d 777 (Michigan Court of Appeals, 1985)
Bosak v. Hutchinson
375 N.W.2d 333 (Michigan Supreme Court, 1985)
Rohe Scientific Corp. v. National Bank
350 N.W.2d 280 (Michigan Court of Appeals, 1984)
LaVergne v. Community National Bank
347 N.W.2d 463 (Michigan Court of Appeals, 1984)
Wilcox v. Sealey
346 N.W.2d 889 (Michigan Court of Appeals, 1984)
Thoms v. Diamond
346 N.W.2d 69 (Michigan Court of Appeals, 1983)
Hardy v. Monsanto Enviro-Chem Systems, Inc
323 N.W.2d 270 (Michigan Supreme Court, 1982)
Harbenski v. Upper Peninsula Power Co.
325 N.W.2d 785 (Michigan Court of Appeals, 1982)
Reed v. ST CLAIR RUBBER CO.
324 N.W.2d 512 (Michigan Court of Appeals, 1982)
Langley v. Harris Corp.
321 N.W.2d 662 (Michigan Supreme Court, 1982)
Parliament Construction Co. v. Beer Precast Concrete, Ltd.
319 N.W.2d 374 (Michigan Court of Appeals, 1982)

Cite This Page — Counsel Stack

Bluebook (online)
276 N.W.2d 869, 88 Mich. App. 128, Counsel Stack Legal Research, https://law.counselstack.com/opinion/darin-armstrong-v-ben-agree-co-michctapp-1979.