Genie Industries v. Market Transport

158 P.3d 1217
CourtCourt of Appeals of Washington
DecidedMay 21, 2007
Docket57314-4-I
StatusPublished
Cited by8 cases

This text of 158 P.3d 1217 (Genie Industries v. Market Transport) is published on Counsel Stack Legal Research, covering Court of Appeals of Washington primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Genie Industries v. Market Transport, 158 P.3d 1217 (Wash. Ct. App. 2007).

Opinion

158 P.3d 1217 (2007)

GENIE INDUSTRIES, INC., Appellant,
v.
MARKET TRANSPORT, LTD, d/b/a Market Logistics, an Oregon corporation, and System Transport, Inc., a Washington corporation, Respondents.

No. 57314-4-I.

Court of Appeals of Washington, Division 1.

May 21, 2007.

*1218 Nicholas Peter Gellert, Marie G. Aglion, John D. Dillow, Perkins Coie LLP, Seattle, WA, John Stevens Rossiter, Jr., Perkins Coie, San Francisco, CA, for Appellant.

David Michael Jacobi, Wilson Smith Cochran Dickerson, John R. Ruhl, Eisenhower & Carlson PLLC, Seattle, WA, Charles Kenneth Wiggins, Wiggins & Masters PLLC, Bainbridge Island, WA, for Respondents.

BECKER, J.

¶ 1 An indemnity clause in a transportation agreement is before us for interpretation under Oregon law. The question is whether System Transport, a trucking company, agreed to indemnify Market Transport and its customers for losses caused by their own negligence. The trial court concluded the *1219 indemnity clause did not express that intention and entered summary judgment dismissing the claims of the indemnitees. We disagree and reverse the order of summary judgment as to appellant Genie Industries. We decline to grant the same relief to Market Transport. Although Market Transport's claim for indemnity arose under the same contract language that applies to Genie, Market did not file its own notice of appeal and there are no "necessities of the case" that permit Market to join Genie's appeal belatedly under RAP 5.3(i).

FACTS

¶ 2 Appellant Genie Industries, Inc., is a company based in Moses Lake, Washington. Genie manufactures and sells industrial lifting equipment. Genie hired Market Transport Ltd. to coordinate the delivery of Genie's lifts to purchasers. Their agreement is known as the "Logistics Management Agreement." Market's responsibilities included evaluating and selecting trucking companies to carry Genie's products. Market selected respondent System Transport, Inc. to transport the lifts involved in this case. System is one of Market's "core" carriers. The agreement between Market and System is known as the "Master Transportation Services Agreement." Under this agreement, System frequently handled Genie's lifts.

¶ 3 Market arranged for System to haul two Genie lifts from Washington to North Carolina in 2001. The lifts were loaded onto a flatbed trailer with the heavy base units at the center and the baskets facing outward, one towards the front and one towards the back. Later, a dispute would arise about whether a different mode of transportation should have been chosen, whether the base units should have been placed over the axles, and who was responsible for directing the configuration of the load.

¶ 4 After the lifts were on the trailer, System's driver secured the lifts with chains and started out. Right away he noticed that the load seemed unstable. He stopped at System's Spokane facility to check on it, but upon leaving Spokane he found that the load continued to lean in an unsettling manner during turns. Although he alerted his dispatcher that the problem persisted, System allowed him to continue on without further inspection.

¶ 5 While the truck was passing through Indiana on the interstate, the Genie lifts broke free from the trailer. Nearby, Allen and Mary Pierce were on the side of the road, fixing a flat tire. One of the lifts hit Mr. Pierce and severed his leg. The other smashed into the Pierce family car. The car ignited. The Pierces' young son, trapped inside, died in the fire.

¶ 6 The Pierce family sued System, Genie and Market for damages caused by the accident, alleging that each defendant was negligent. The Pierce claims were litigated in a federal district court in Illinois. The court declared in April 2002 that Indiana law applied to all the Pierce claims. Because Indiana does not have joint and several liability, each defendant would be responsible to the Pierces only for damages caused by its own negligence.

¶ 7 The Pierces alleged, among other theories, that System, Genie and Market were each negligent for failing to ensure that the load was adequately secured. These allegations remained after various motions for summary judgment were decided. Before trial, the Pierces settled with the three defendants for a total of $15.6 million. System contributed $7.6 million; Genie $4 million; and Market $4 million.

¶ 8 Meanwhile, Genie filed this lawsuit in King County Superior Court in January 2005 asking for indemnity from both Market and System. Genie's claim against Market was based on an indemnity provision in the Logistics Management Agreement. The court dismissed Genie's indemnity claim against Market in an order of summary judgment dated September 23, 2005.

¶ 9 Genie's claim against System was based on a similar indemnity provision in the Master Transportation Services Agreement. By signing the agreement, System agreed to indemnify, defend and hold harmless Market and its customers for costs "arising out of or *1220 related to, directly or indirectly,"[1] System's performance of the agreement. As Market's customer, Genie was a third party beneficiary of this agreement. Market cross-claimed against System for indemnity based on the same agreement.

¶ 10 System moved for summary judgment against Genie's claim and Market's cross-claim. System's motion was based on the principle that indemnitees are not covered for their own negligence unless the indemnity agreement clearly and unequivocally expresses that intent.[2]

¶ 11 Genie opposed the motion. Market did not oppose the motion. Market responded that System's motion for summary judgment logically should have the same outcome as Market's earlier motion because the indemnity provisions in the two agreements had similar wording. Market took the position, however, that if Genie's claim against System did survive the motion for summary judgment, then "Market's cross-claim against System also must survive."[3] In an order dated October 28, 2005, the trial court granted System's motion for summary judgment and dismissed the claims by Genie and Market for indemnity based on the Master Transportation Services Agreement.

¶ 12 Genie filed a notice of appeal from both orders. But by the time Genie filed its Brief of Appellant in May 2006, Genie had settled with Market and had dropped its appeal of the September 23 order that dismissed Genie's claim for indemnity from Market. Thus the only issue raised by Genie's brief was whether the trial court, in its October 28 order, had improperly dismissed Genie's claim of indemnity from System.

¶ 13 Market did not file a notice of appeal concerning the dismissal (by the same order) of its cross-claim against System. Three months after Genie filed its Brief of Appellant, however, Market filed a "Joinder" in that brief. Market contends that if this court reinstates Genie's claim for indemnity from System, then Market's claim against System must also be reinstated because both Market and Genie derive their status as indemnitees from the same provision in the Master Transportation Services Agreement. System has moved to strike the joinder and bar Market from obtaining any relief on appeal.

¶ 14 We first analyze the indemnity provision to decide whether Genie is entitled to relief from the order of October 28, 2005. If so, we must then decide whether reversal of the judgment against Genie compels reversal of the judgment against Market.

CONTRACTUAL INDEMNITY

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Bluebook (online)
158 P.3d 1217, Counsel Stack Legal Research, https://law.counselstack.com/opinion/genie-industries-v-market-transport-washctapp-2007.