Hartford Fire Insurance v. Pettinaro Construction Co.

820 F. Supp. 154, 1993 U.S. Dist. LEXIS 6209, 1993 WL 147938
CourtDistrict Court, D. Delaware
DecidedMarch 30, 1993
DocketCiv. A. No. 91-702 SLR
StatusPublished

This text of 820 F. Supp. 154 (Hartford Fire Insurance v. Pettinaro Construction Co.) is published on Counsel Stack Legal Research, covering District Court, D. Delaware primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Hartford Fire Insurance v. Pettinaro Construction Co., 820 F. Supp. 154, 1993 U.S. Dist. LEXIS 6209, 1993 WL 147938 (D. Del. 1993).

Opinion

MEMORANDUM ORDER

SUE L. ROBINSON, District Judge.

This is a diversity action brought by Hartford Fire Insurance Company (“Hartford”) as subrogee to the rights of its insureds, Middletown Concrete Products, Inc. and BTO Limited Partnership (collectively referred to herein as “Middletown”), in connection with a crane accident which occurred on January 16, 1990, at Middletown’s newly-constructed manufacturing facility in Middle-town, Delaware (the “Middletown Facility”). [156]*156Hartford commenced this action after allegedly making payments to Middletown in the approximate amount of $460,000 for property and interruption of business damages arising from this accident.

Before the Court are various motions for summary judgment.

Factual Background

Middletown contracted with defendant Hy-drotile Machinery Co. (“Hydrotile”) for the purchase of a hoist system to be installed at the Middletown Facility.1 Defendant Rekers GMBH (“Rekers”) subcontracted with Hy-drotile “for the purchase, erection and supervision of installation of the equipment.” (D.I. 182, Exhibit A at ¶ 10). Middletown contracted with Pettinaro Construction Company (“Pettinaro”) to act as its construction manager in connection with the Middletown construction project. As part of its duties as construction ■ manager, Pettinaro undertook certain responsibilities regarding the installation of the hoist system. Pettinaro in turn contracted.with Active Crane Rentals, Inc. (“Active”) to provide two cranes and two operators to assist in performing the installation procedure. (D.I. 2 at ¶ 13). Active supplied said cranes and “contracted with and/or otherwise engaged defendants” Michael Dooling (“Dooling”) and Donald Karr (“Karr”) to operate the cranes. (D.I. 2 at ¶ 14).

As to defendants’ negligence and liability for the damages arising from the crane accident at issue in this case, Hartford simply alleges in its bare bones pleading that “[d]ur-ing the performance of the [hoist system installation procedure], one of the aforesaid cranes tipped over on its side, as a result of the joint and/or several negligence of the defendants, proximately causing” Middle-town’s damages. (D.I. 2 at ¶ 17). It appears from the record that the crane accident occurred because the cranes selected were of an insufficient size to lift the hoist system for installation. It further appears that there was substantial confusion among the parties involved as to the weight of the hoist system2 and that said confusion, coupled with the failure of any of the parties to ascertain the precise weight of the system or to ensure that the cranes selected for the task' were sufficient, resulted in this dangerous mishap.

Defendant Active moves for summary judgment as to the claim of plaintiff against it and as to its cross-claim against defendant Pettinaro. Defendant Karr moves for summary judgment as to plaintiffs negligence claim against him. Hydrotile also moves for summary judgment with respect to plaintiffs claim against it. Likewise, Rekers moves for summary judgment as to plaintiffs negligence claim against it. For the following reasons, the Court concludes that the existence of genuine issues of material fact preclude summary disposition of these negligence claims and that the motions accordingly must be denied.

Discussion

The Court will consider each of the pending summary judgment motions seriatim.

Active’s Motions for Summary Judgment

As related above, Pettinaro, while acting as Middletown’s representative and project manager, contracted with Active Crane for supply of two cranes and two crane operators in order to facilitate lift of the hoist system. The record indicates that Mr. David McCormick (“McCormick”) .of Pettinaro telephoned Active Crane on the afternoon of January 15, 1990 to discuss rental of two manned cranes for the following day. McCormick had a telephone conversation with Active employee Steve Lloyd Schmeusser (“Schmeusser”) regarding lease of the cranes. The record indicates that McCofmick and Schmeusser discussed various matters relating to lease of the cranes, including price of the manned cranes, size of the cranes needed, as well as where and when the cranes were to be deliv[157]*157ered. It is undisputed that McCormick and Sehmeusser did not discuss matters of which party, Active or Pettinaro, would be liable in the event of an accident involving the leased cranes.

On the following day, January 16,1900, the day of the crane accident, the cranes and their operators arrived at the Middletown Facility. At that timé, one of the crane operators presented Mr. Thomas Durnan of Pettinaro with “RENTAL AGREEMENT” documents. Each of these documents contained certain information relating to the crane rental agreement between Active and Pettinaro, including the size of the crane, the date of rental and the place of delivery.3 The “RENTAL AGREEMENT” documents also included a “RELEASE” provision which provides as follows:

Lessor agrees to supply the above equipment and necessary personnel to operate same under direct and sole supervision of the Lessee for an eight (8) hour minimum day (8:00-4:30). Lessee agrees to hold lessor harmless for loss, damage and expense resulting from the operation of the above mentioned equipment either bodily injury or property damage including damage or loss to the equipment-leased hereby, and agrees to defend lessor from all suits resulting from above operation. The lessee further agrees to maintain Public Liability insurance in the amount of $500,-000 for bodily injuries and $250,000 for property damage in favor of Active Crane Rentals, Inc., covering the operation of the above equipment.

(D.I. 90, Exhibit A).

Active’s cross-claim against Pettinaro is grounded on this “RELEASE” provision contained in the “RENTAL AGREEMENT” documents allegedly signed by Pettinaro employee Durnan at the time that Active delivered the two leased cranes to the Middletown Facility. Active claims that said release provision requires Pettinaro to indemnify, provide liability insurance and defend Active “for loss, damage and expense resulting from the operation of the leased equipment,” as well as to pay “all litigation expenses of Active ... including attorneys’ fees for defending the instant action.” (D.I. 90 at ¶¶ 7, 9, 11).

Pettinaro initially responds to Active’s contractual indemnity claim by conceding that under the terms of the contract “the lessee [here Pettinaro] agrees to hold the lessor [here Active] harmless for loss, damage and expense from property damage resulting from the operation of the cranes” and “further agrees to defend the lessor from all suits resulting from the operation of the cranes.” (D.I. 110 at ¶ Í0 (emphasis removed)). Likewise; Pettinaro agrees that the indemnity clause requires the lessee “to maintain public liability insurance in favor of the lessor in the amount of $250,000 for property damage covering the operation of the cranes.” (D.I. 110 at ¶ 10 (emphasis removed)). Moreover, Pettinaro concedes that one of its employees signed the subject lease agreements containing the indemnity clause at issue. (D.I. 100 at ¶ 8; D.I. 109 at ¶ 3).

Pettinaro nonetheless seeks to avoid potential liability under the indemnity provision by contending that “Pettinaro agreed to lease the two cranes and operators from Active for a stated price; however, Pettinaro never agreed to be bound under the express terms of the release.” (D.I.

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Bluebook (online)
820 F. Supp. 154, 1993 U.S. Dist. LEXIS 6209, 1993 WL 147938, Counsel Stack Legal Research, https://law.counselstack.com/opinion/hartford-fire-insurance-v-pettinaro-construction-co-ded-1993.