Integrated Project Services v. HMS Interiors, Inc.

931 A.2d 724, 2007 Pa. Super. 246, 2007 Pa. Super. LEXIS 2606
CourtSuperior Court of Pennsylvania
DecidedAugust 16, 2007
StatusPublished
Cited by13 cases

This text of 931 A.2d 724 (Integrated Project Services v. HMS Interiors, Inc.) is published on Counsel Stack Legal Research, covering Superior Court of Pennsylvania primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Integrated Project Services v. HMS Interiors, Inc., 931 A.2d 724, 2007 Pa. Super. 246, 2007 Pa. Super. LEXIS 2606 (Pa. Ct. App. 2007).

Opinion

OPINION BY

BENDER, J.:

111 Integrated Project Services (“General Contractor”) appeals from the June 13, 2005 order that granted the motion for judgment on the pleadings filed by HMS Interiors, Inc. (“Subcontractor”), on the basis that Subcontractor was not contractually obligated to indemnify General Contractor for liability incurred after Subcontractor’s employee, Joseph Lloyd, sustained injuries on the construction work site owned by Wyeth-Ayerst Laboratories (“Owner”). The primary issue in this case is whether a pass-through indemnification clause in the subcontract serves to require Subcontractor to indemnify General Contractor for that portion of the damages attributable to General Contractor’s negligence. Since the subcontract does not clearly and unequivocally demonstrate that Subcontractor intended to indemnify General Contractor for damages resulting from General Contractor’s own negligence, we affirm.

¶ 2 On November 15,1996, General Contractor and Owner entered into an agreement to provide renovations for Owner’s building in Marietta, Pennsylvania (hereinafter, “prime contract”). 1 The prime eon- *726 tract contains the following indemnification clause:

[Paragraph 3.12.1] To the fullest extent permitted by law, the [General] Contractor shall indemnify, defend and hold harmless the Owner, its agents and employees from and against claims, damages, losses and expenses, including but not limited to attorney’s fees, arising out of or resulting from the performance of the Work, provided that such claim, damage, loss or expense is attributable to bodily injury, sickness, disease or death, or to injury to- or destruction of tangible property (other than the Work itself) including loss of use resulting therefrom, but only to the extent caused in whole or in part by negligent acts or omissions of the [General] Contractor or any Subcontractor, or anyone directly or indirectly employed by them or anyone for whose acts they may be liable for regardless whether or not such claim, damage, loss or expense is caused in part by a party indemnified hereunder. Such obligation shall no[t] be construed to negate, abridge, or reduce other rights or obligations of indemnity which would otherwise exist as to a party or person described in Paragraph 3.12.1.

Prime Contract at ¶ 3.12.1 (emphasis added). In the next paragraph, the prime contract provides for the following waiver of workers’ compensation immunity:

[Paragraph 3.12.2] In claims against any person or entity indemnified under this paragraph 3.12 by an employee of the Contractor, a Subcontractor, anyone directly or indirectly employed by them or anyone for whose acts they may be liable, the indemnification obligation under this Paragraph 3.12 shall not be limited by a limitation on amount or type of damages, compensation or benefits payable by or for the [General] Contractor or a Subcontractor under workers’ or workmen’s compensation acts, disability benefit acts or other employee benefit acts.

Prime Contract at ¶ 3.12.2 (emphasis added). Article 9 of the prime contract also requires General Contractor to maintain various forms of insurance, including workers’ compensation insurance and comprehensive general public liability insurance.

¶ 3 Subsequently, on February 12, 1997, General Contractor entered into a contract with Subcontractor for performance of certain work encompassed by the prime contract (hereinafter the “subcontract”). The subcontract contains the following broad, all-encompassing provisions for incorporation of the prime contract by reference and for indemnification:

6. All work required to be performed hereunder by SUBCONTRACTOR shall be in strict accordance with the CONTRACT DOCUMENTS applicable to the work to be performed and materials, articles and/or equipment to be furnished hereunder. SUBCONTRACTOR shall be bound to CONTRACTOR by the terms of this SUBCONTRACT and of the CONTRACT DOCUMENTS between the Owner and CONTRACTOR and shall assume toward CONTRACTOR all of the obligations and responsibilities with respect to the work to be performed hereunder by SUBCONTRACTOR which CONTRACTOR, by the CONTRACT DOCUMENTS, assumes toward the Owner.
7. SUBCONTRACTOR assumes entire responsibility and liability for any and all claims and/or damages of any nature or character whatsoever for which CONTRACTOR shall be liable under the CONTRACT DOCUMENTS, or by operation of law, with respect to *727 the work covered by this SUBCONTRACT and agrees to indemnify and save CONTRACTOR and Owner harmless from and against all claims, demands, liabilities, interest, loss, damage, attorneys’ fees, costs and expenses of whatsoever kind or nature, whether for property damage, personal injuries (including death) to any and all persons, whether employees of CONTRACTOR or others, or otherwise, caused or occasioned thereby, resulting therefrom, arising out of or therefrom, or occurring in connection therewith to the same extent and obligation to which CONTRACTOR has assumed towards Owner under the CONTRACT DOCUMENTS, or as imposed by law, limited to the scope of the subject matter of this SUBCONTRACT.

Subcontract, 2/12/97, at ¶¶ 6, 7. Other provisions of the subcontract include Subcontractor’s agreement to maintain certain forms of insurance such as workers’ compensation insurance and comprehensive general liability insurance. Id. at ¶ 8.

¶4 On January 22, 1998, Mr. Lloyd, Subcontractor’s employee, was injured after falling off a roof while working at the construction site in Marietta, Pennsylvania. 2 Barred by the workers’ compensation statute from suing his employer (Subcontractor), Mr. Lloyd filed a complaint against Owner and General Contractor on June 15,1999, in which he sought damages for his injuries. Lloyd Complaint, 6/15/99, at ¶ 5. General Contractor attempted to join Subcontractor as an additional defendant in the underlying Lloyd action, and Subcontractor responded by filing preliminary objections to that effort. Due to General Contractor’s failure to respond to Subcontractor’s preliminary objections to the joinder complaint, Subcontractor’s preliminary objections were sustained and Subcontractor was dismissed with prejudice. See Trial Court Opinion (T.C.O.), 7/2/01, at 2-3. Indeed, in this appeal General Contractor does not argue that Subcontractor’s negligence contributed to Mr. Lloyd’s injuries. 3

¶ 5 On March 15, 2001, General Contractor filed a complaint against Subcontractor and Subcontractor’s insurer, the PMA Insurance Group, in which it raised various claims for, inter alia, declaratory judgment, breach of contract, unjust enrichment, negligent misrepresentation, and breach of the duty of good faith and fair dealing. More specifically, with regard to issues in this appeal, Count I of General Contractor’s complaint asserted a claim against Subcontractor only, seeking a declaratory judgment that Subcontractor was obligated to indemnify General Contractor in the underlying Lloyd action, pursuant to the above-noted clauses in the subcontract. 4 5

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Cite This Page — Counsel Stack

Bluebook (online)
931 A.2d 724, 2007 Pa. Super. 246, 2007 Pa. Super. LEXIS 2606, Counsel Stack Legal Research, https://law.counselstack.com/opinion/integrated-project-services-v-hms-interiors-inc-pasuperct-2007.