Georgia, Florida, Alabama Transportation Co. v. Deaton, Inc.

304 So. 2d 168, 293 Ala. 371, 1974 Ala. LEXIS 977
CourtSupreme Court of Alabama
DecidedDecember 5, 1974
DocketSC 645
StatusPublished
Cited by10 cases

This text of 304 So. 2d 168 (Georgia, Florida, Alabama Transportation Co. v. Deaton, Inc.) is published on Counsel Stack Legal Research, covering Supreme Court of Alabama primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Georgia, Florida, Alabama Transportation Co. v. Deaton, Inc., 304 So. 2d 168, 293 Ala. 371, 1974 Ala. LEXIS 977 (Ala. 1974).

Opinion

*373 MERRILL, Justice.

This appeal is from a decree rendered in a declaratory judgment proceeding in which the trial court held that the lessee, appellant Georgia, Florida, Alabama Transportation Company, Inc., would be required to defend and indemnify the lessor, appellee Deaton, Inc., against all claims asserted by John F. Hudson and Norman L. Hulsey.

Georgia, Florida, Alabama Transportation Company, Inc. (hereinafter referred to as GFA) and Deaton, Inc. (hereinafter referred to as Deaton) are engaged in the truck freight business. On July 30, 1971, GFA and Deaton entered into an agreement known as Equipment Interchange Agreement (hereinafter referred to as E. I.A. or Agreement).

The purpose of an E.I.A. is to permit the lessor’s fully loaded truck to be delivered to a destination where the owner has no “operating rights.” The using carrier (lessee) delivers the goods to the destination where it has “operating rights” and receives payment for the delivery. The E.I.A. saves the expense of unloading and reloading, and permits the lessee (GFA) to hook its tractor to the owner’s (Deaton’s) trailer and move it to a destination where Deaton does not have “operating rights.”

The following provision in the agreement was the one requiring construction and interpretation:

“3c Carrier liability for persons or property:
(1) For third persons or property of third persons:
The Using Carrier, while in possession of interchange equipment, releases and agrees to defend and hold harmless the owner and any intermedíate carrier or provider furnishing said equipment, from and against any and all loss, damage, liability, cost or expenses suffered or incurred by the owner, and any intermediate carrier or provider, arising out of or connected with injuries to or death of other persons or loss or damage to property of other persons arising out of the Using Carrier’s use, operation, maintenance or possession of interchange equipment; except loss or damage to such interchange equipment, or cargo being transported therein or cargo being loaded or unloaded or held at terminal or transit points incident to transportation.”

On July 30, 1970, one of the appellee’s loaded trailers was picked up from their LTL terminal in Birmingham by an agent of appellant GFA. At the time the trailer was picked up, employees for both GFA and Deaton signed the trailer report pursuant to the requirements of the E.I.A. There is a specific section for the brake system, but this was not completed by either GFA or Deaton.

Late Friday afternoon, July 31, 1970, while the trailer was in GFA’s terminal, a GFA maintenance man detected a defective air valve on the brake system of the trailer (# 4105) and “grounded” the trailer. The maintenance man then reported this defect to the GFA terminal manager.

John F. Hudson, a GFA driver, arrived at GFA’s terminal early in the morning on August 1, 1970, and received paper work instructing him to deliver trailer # 4105 to Geneva, Alabama. He connected GFA’s tractor to the Deaton trailer. Hudson then *374 left GFA’s terminal traveling south. When he reached a point about halfway down the southern slope of Shades Mountain on U. S. 31, Hudson’s trailer brakes failed. He continued down the hill to a point where Columbiana Road intersects with U. S. 31, and at that intersection, his truck collided with an automobile driven by Norman L. Hulsey.

Hudson and Hulsey subsequently filed actions at law against GFA and Deaton for the recovery of damages as a result of injuries received in the accident.

On November 22, 1972, appellee Deaton filed its bill for declaratory judgment seeking a declaration of its rights under the lease agreement. Named as respondents were GFA, Catón Transfer Company, Inc., John F. Hudson and Norman L. Hulsey. It was stipulated that where the word “Catón” appeared, it was one and the same corporation as GFA. Deaton sought and secured an injunction against Hudson and Hulsey staying prosecution of their suits against Deaton.

The cause was tried and a final decree entered on April 6, 1973, holding that GFA was obligated to defend, indemnify and hold harmless Deaton against the claims asserted by Hudson and Hulsey in their > suits at law against Deaton. The trial court’s decree included the following findings :

“Both Hudson and Hulsey alleged that the accident was caused by faulty brakes on the interchange equipment due to the negligence of the Complainant.' The Court does not find from the testimony produced at this hearing that the Complainant or Respondent, Catón (GFA), was guilty of negligence in the maintenance of the brakes on the trailer that was the subject of the interchange.
“The agreement here for interpretation has been approved by the Interstate Commerce Commission and is in wide use between many trucking concerns. It is for the most part clear and unambiguous in its terms. In the construction of the entire contract the Court has little difficulty in finding that it was the intention of the parties to the agreement that the Complainant would be due indemnity from Respondent, Catón.”

Appellant GFA contends that the parties did not intend for GFA to indemnify Deaton, for Deaton’s own negligence since the clause did not contain “talismanic” words, i. e., since it did not include the phrase “including the negligence of the indemnitee.”

Our cases hold that the intention to indemnify the negligence of the indemnitee must clearly appear from the wording of the instrument, but when that intention is clear, the indemnity provisions will be read and construed so as to give them the meaning the parties have expressed. Eley v. Brunner-Lay Southern Corp., 289 Ala. 120, 266 So.2d 276; Walter L. Couse and Company v. Hardy Corporation, 49 Ala.App. 552, 274 So.2d 316, cert. denied, 290 Ala. 134, 274 So.2d 322.

We have also stated that the use of the word “negligence” is not required if the intention to afford such protection clearly appears from the contract or from the language used, the surrounding circumstances, and the purpose and objects of the parties. See Walter L. Couse and Company v. Hardy Corp., supra; Eley v. Brunner-Lay Southern Corp., supra; Republic Steel Corp. v. Payne, 272 Ala. 483, 132 So.2d 581.

In Eley, supra, the lessor of a drilling machine sought the construction of a lease. Lessor contended that the lease obligated lessee to indemnify lessor for liability allegedly resulting from the negligence of lessor in designing, maintaining and supplying the machine. This court considered various provisions in detail, including provisions by which lessee agreed that the machine was in good condition when it was received by lessee, that the lessee would provide insurance protection, and *375 that the lessee would indemnify the lessor against all loss, damage, expense and penalty arising from the operation of the equipment during the rental period. We stated in Eley, supra:

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Bluebook (online)
304 So. 2d 168, 293 Ala. 371, 1974 Ala. LEXIS 977, Counsel Stack Legal Research, https://law.counselstack.com/opinion/georgia-florida-alabama-transportation-co-v-deaton-inc-ala-1974.