Fujitsu Microelectronics, Inc. v. Lam Research Corp.

27 P.3d 493, 174 Or. App. 513, 2001 Ore. App. LEXIS 803
CourtCourt of Appeals of Oregon
DecidedJune 6, 2001
Docket9810-07687; A108732
StatusPublished
Cited by5 cases

This text of 27 P.3d 493 (Fujitsu Microelectronics, Inc. v. Lam Research Corp.) is published on Counsel Stack Legal Research, covering Court of Appeals of Oregon primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Fujitsu Microelectronics, Inc. v. Lam Research Corp., 27 P.3d 493, 174 Or. App. 513, 2001 Ore. App. LEXIS 803 (Or. Ct. App. 2001).

Opinion

BREWER, J.

Lam Research Corporation (Lam) appeals from summary judgment in favor of Harder Mechanical Contractors, Inc., and its employee, Thomas Leist, (collectively, Harder) on Lam’s claims for contribution, ORS 18.440, and common-law indemnity. Lam argues that the trial court erroneously relied on a contractual waiver provision in granting summary judgment to Harder. We review for errors of law, ORCP 47 C; Jones v. General Motors Corp., 325 Or 404, 420, 939 P2d 608 (1997), and affirm.

The facts are undisputed. Fujitsu Microelectronics, Inc., (Fujitsu) contracted with Technology Design and Construction Company (TDC) to design and build a semiconductor fabrication plant.1 The written contract between Fujitsu and TDC included the following “waiver” provision:

“13.5.1 [Fujitsu] and Contractor waive all rights of recovery against each other and all subcontractors of any tier for damages covered by property insurance, builder’s risk insurance, loss of use insurance and any other property or casualty insurance provided under this Section 13, except such rights as a party may have to the proceeds of such insurance as a Loss Payee. Contractor shall require similar waivers from all subcontractors * * * and shall require each of them to include similar waivers in their sub-subcontracts and consulting agreements.”

The waiver provision was part of an overall contracting scheme under which Fujitsu, TDC, and TDC’s subcontractors mutually agreed to waive any right to recover damages arising from the work that was covered by insurance. In a written subcontract, TDC engaged Harder to “receive, unload, uncraté, wipedown (twice), transport, and set tools [at the plant].” Fujitsu purchased a wafer transport platform tool from Lam for $719,790, and Lam delivered the tool to the plant. In the course of unloading the tool, Leist attempted to lift it from a pallet with a forklift. The tool fell from the forklift and was severely damaged when it struck the concrete floor. The loss was covered by insurance and, therefore, Fujitsu was barred by the waiver provision from asserting [517]*517any claim against Harder. However, Lam was not subject to the contract between Fujitsu and TDC. Thus, Lam was not protected by the waiver provision.

Fujitsu filed an action against Lam for breach of contract and negligence, alleging that Lam had failed to package the tool properly to prevent damage in transit. Lam filed a third-party complaint against Harder for contribution and common-law indemnity. Harder moved for summary judgment against both third-party claims. Harder argued that the contribution claim was barred by ORS 18.440(1), which provides:

“Except as otherwise provided in this section, where two or more persons become jointly or severally liable in tort for the same injury to person or property or for the same wrongful death, there is a right of contribution among them even though judgment has not been recovered against all or any of them. There is no right of contribution from a person who is not liable in tort to the claimant.” (Emphasis added.)

In addition, Harder observed that, in order to obtain indemnity, Lam must establish, among other requirements, that Harder is liable to Fujitsu. See Fulton Ins. v. White Motor Corp., 261 Or 206, 210, 493 P2d 138 (1972). According to Harder, the waiver provision contained in the agreement between Fujitsu and TDC insulates Harder from liability to Fujitsu and, thus, provides a complete defense to Lam’s contribution and indemnity claims. The trial court agreed and entered summary judgment for Harder. The court entered final judgment under ORCP 67 B, and Lam appeals from that judgment.

The decisive issue on appeal is whether the waiver provision in the contract between Fujitsu and TDC prevents Harder from being “liable in tort” to Fujitsu within the meaning of ORS 18.440(1).2 As it did in the trial court, Harder rests [518]*518its defense entirely on the waiver provision. In response, Lam contends that the trial court erred in concluding that Harder is not liable to Fujitsu, because there has been no judicial determination of its liability on the merits.

The Supreme Court first considered the meaning of the statutory phrase “liable in tort” in Blackledge v. Harrington, 291 Or 691, 634 P2d 243 (1981). The defendants in Blackledge brought a third-party action for contribution against an alleged joint tortfeasor who had prevailed in an earlier action by the plaintiff to recover for the same injury. The court held, based on ORS 18.440(1), that the earlier judgment was conclusive in favor of the third-party defendant on the question of liability to the plaintiff. Id. at 696.

This court considered the reach of Blackledge in Transport Indemnity, a case on which Lam relies heavily. There, an insurer for one of the defendants paid the plaintiffs claim in full, obtained a judgment of dismissal in favor of all defendants and then sought contribution from the other defendants in a separate action. The trial court granted summary judgment in favor of the defendants in the contribution action. On appeal, one of the defendants argued that the contribution claim was barred by claim preclusion based on the dismissal of the underlying action. Transport Indemnity, 63 Or App at 397. We reversed. We distinguished Blackledge on the facts because, unlike in that case, there had been no determination in the underlying action that the defendant was not liable in tort to the claimant. Id. at 398. However, we ultimately concluded that the doctrine of claim preclusion was “not relevant” to the circumstances at bar, because the right to recover contribution is governed by a specific statutory scheme. Id. at 399. We explained that the defendant’s argument was inconsistent with ORS 18.440(3), which provides that a tortfeasor who settles a claim is not entitled to contribution from any joint tortfeasor whose liability to the claimant is not extinguished by the settlement. Id. at 398. We observed that ORS 18.440(3) would be a “nullity” if the defendant’s argument were correct because, in that event, a tortfeasor who does obtain a discharge of liability for all [519]*519tortfeasors also would be barred from recovering contribution. Id. We concluded that “the legislature [did not intend] ORS 18.440(1) to be so construed, and we do not think the Supreme Court intended Blackledge to control under these facts.” Id.

Relying on Beaver v. Pelett, 299 Or 664, 705 P2d 1149 (1985), Harder argues that a necessary feature of “liability in tort” under ORS 18.440

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Cite This Page — Counsel Stack

Bluebook (online)
27 P.3d 493, 174 Or. App. 513, 2001 Ore. App. LEXIS 803, Counsel Stack Legal Research, https://law.counselstack.com/opinion/fujitsu-microelectronics-inc-v-lam-research-corp-orctapp-2001.