Delle Donne & Associates, LLP v. Millar Elevator Service Co.

840 A.2d 1244, 2004 Del. LEXIS 33, 2004 WL 103447
CourtSupreme Court of Delaware
DecidedJanuary 9, 2004
Docket070,2003
StatusPublished
Cited by14 cases

This text of 840 A.2d 1244 (Delle Donne & Associates, LLP v. Millar Elevator Service Co.) is published on Counsel Stack Legal Research, covering Supreme Court of Delaware primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Delle Donne & Associates, LLP v. Millar Elevator Service Co., 840 A.2d 1244, 2004 Del. LEXIS 33, 2004 WL 103447 (Del. 2004).

Opinion

JACOBS, Justice:

The plaintiff, who was injured while riding on an elevator, brought this action in the Superior Court against two companies that installed and serviced the elevator (the “Millar defendants” or “Millar”), and against two companies that owned and managed the building where the elevator was located (the “Delle Donne defendants” or “Delle Donne”). During the pendency of that case and before the trial began, all four defendant companies entered into joint tortfeasor settlements with the plaintiff. That left for resolution only the defendants’ cross claims against each other for indemnity and contribution.

At the trial on the defendants’ cross claims, the jury determined (inter alia) the defendants’ proportionate liability, finding that the Delle Donne defendants were 65% liable, and that the Millar defendants were 35% liable, for the plaintiffs injuries. Based on those findings, the trial court determined that the Millar defendants were entitled to contractual indemnity of $18,750, plus an attorneys’ fees award of $76,186.91, against Delle Donne. 1 The trial court entered judgment against Delle Donne in that amount.

Delle Donne has appealed from the trial court's judgment, claiming that no ($0) indemnity and attorneys’ fees should have been awarded to Millar. Millar has cross-appealed from that portion of the judgment awarding attorneys’ fees, claiming that after Millar settled with the plaintiff, it was contractually entitled to 100%, rather than 65%, of the fees it incurred to recover contractual indemnification from Delle Donne.

For the reasons set forth herein, we affirm the trial court’s final order awarding contractual indemnity and attorneys’ fees to Millar. We reverse that portion of the order limiting Millar to 65% of the attorneys’ fees it incurred after May 30, 2002 to recover contractual indemnification from Delle Donne, however, because we conclude that Millar was entitled to recover 100% of those fees.

Facts

On July 30, 1997, the plaintiff, Cheryl Wickes, sustained injuries while riding on an elevator that suddenly dropped and came to an abrupt stop. The elevator on which this incident occurred was installed, serviced, and maintained by Millar Elevator Service Company (“Millar”), which was an unincorporated division of Schindler Elevator Corporation (“Schindler”). 2 The building in which the elevator was located was owned by Delmont Partners, L.P. and was managed by Delle Donne & Associates (collectively “Delle Donne”). 3

*1248 On June 3, 1999, plaintiff Wickes filed her initial Superior Court complaint, naming as defendants Millar, Schindler, and Delle Donne. Wickes later amended her complaint on July 2, 1999, and again on April 19, 2000, to add as additional defendants Delmont, and later Elevator Equipment Company, which manufactured a component part of the elevator.

In its answers to the three complaints, Millar asserted a cross claim for indemnity, or .alternatively for contribution, against Delle Donne. Millar’s cross claim also sought reimbursement of its expenses, including the reasonable attorneys’ fees it incurred to defend the lawsuit. In its answers, Delle Donne asserted a cross claim against Millar for contractual indemnity, common law indemnity and contribution.

Between November 5, 2001 and May 30, 2002, the defendants entered into separate settlements with the plaintiff. On November 19, 2001, Delle Donne settled with the plaintiff for $95,000. As part of that settlement, the plaintiff granted to Delle Donne a joint tortfeasor release that contained language intended to protect Delle Donne from further contribution claims, as contemplated by the Uniform Contribution Among Tortfeasors Law. 4 Because it remained an interested party for purposes of resolving the mutual cross claims asserted by and against Millar, Delle Donne was not dismissed from the case.

On February 11, 2002, Elevator Equipment Company advised the trial court that it had entered into a settlement with the plaintiff in an undisclosed amount. Elevator Equipment Company was dismissed as a party, because the other defendants decided not to pursue cross claims against it. That left Millar as the only defendant still contesting the plaintiffs negligence claims. On May 30, 2002, two days before the trial was scheduled to begin, Millar settled with the plaintiff for $80,000.

Thus, by the time of trial, plaintiff Wickes’ claims against all the defendants had been settled for $175,000. The only claims that remained to be determined were the cross claims being asserted by the Delle Donne and the Millar defendants against each other for indemnification and/or contribution arising out of their individual settlements with Wickes.

In their cross claim, Delle Donne claimed that the parties’ indemnification and contribution rights and obligations were governed by the “Elevator Maintenance Agreement” into which Delle Donne and Millar had entered on October 1, 1992. The Elevator Maintenance Agreement obligated Millar to indemnify Delle Donne for any liability caused by Millar’s own negligence, but it did not impose a reciprocal indemnity obligation running from Delle Donne to Millar. Delle Donne acknowledged that the stated term of the Elevator Maintenance Agreement extended only to September 30 1995 (two years before Wickes suffered her injury). Delle Donne contended, nonetheless, that on the date of Wickes’ injury *1249 the Elevator Maintenance Agreement was still in effect, because there had been no attempt to terminate that agreement and both parties continued to operate under its terms.

The Millar defendants disputed that contention, urging that by its terms the Elevator Maintenance Agreement had expired. Millar took the position that on the date that Wickes was injured, the only operative contract was the “Custom Engineered Maintenance Agreement” among the parties, that became effective on September 1,1992. That contract was terminable by either party at the end of a five-year period, or any subsequent five-year renewal period, on ninety (90) days’ written notice. 5 Importantly, the Custom Engineered Maintenance Agreement contained reciprocal indemnity covenants, wherein the Delle Donne defendants and the Millar defendants each agreed “to indemnify and hold harmless the other from and against all claims, damages, losses and expenses, including reasonable attorneys’ fees, resulting from bodily injury.. .to any person.. .to the extent caused by the negligent acts or omissions of the other (the indemnifying party).” That is, the Custom Engineered Maintenance Agreement — unlike the Elevator Maintenance Agreement upon which Delle Donne relied — required Delle Donne to indemnify Millar for its losses to the extent they were caused by Delle Donne’s negligence.

Thus, from an indemnity standpoint, the Maintenance Agreement manifestly favored Delle Donne, whereas the Custom Engineered Maintenance Agreement clearly favored Millar. For that reason, the issue of which agreement was in effect on the date of Wickes’ injury became critical during the trial court proceedings.

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Bluebook (online)
840 A.2d 1244, 2004 Del. LEXIS 33, 2004 WL 103447, Counsel Stack Legal Research, https://law.counselstack.com/opinion/delle-donne-associates-llp-v-millar-elevator-service-co-del-2004.