MacDonald & Kruse, Inc. v. San Jose Steel Co.

29 Cal. App. 3d 413, 105 Cal. Rptr. 725
CourtCalifornia Court of Appeal
DecidedDecember 14, 1972
DocketCiv. 37924
StatusPublished
Cited by41 cases

This text of 29 Cal. App. 3d 413 (MacDonald & Kruse, Inc. v. San Jose Steel Co.) is published on Counsel Stack Legal Research, covering California Court of Appeal primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
MacDonald & Kruse, Inc. v. San Jose Steel Co., 29 Cal. App. 3d 413, 105 Cal. Rptr. 725 (Cal. Ct. App. 1972).

Opinion

Opinion

STEPHENS, Acting P. J.

This appeal arises out of indemnity litigation involving the State of California, a general construction contractor, and certain subcontractors. In brief, the state contracted with MacDonald & Kruse, Inc. (MacDonald) to have widened an existing overpass of the Long Beach freeway. MacDonald, as the general contractor, subcontracted with San Jose Steel Company, Inc. (San Jose) for the fabrication and erection of the steel that was to be used on the project, and San Jose, in turn, subcontracted the erection of the steel to California Erectors, Inc. (Erectors). During the course of the construction, an employee of Erectors (hereinafter, the employee) suffered physical injuries as a result of his falling from the overpass to the ground, a distance of some 32 feet. The employee instituted an action for personal injuries against the state, MacDonald, and. San Jose, and was awarded judgment in the amount of $294,140 against the state and MacDonald, but not San Jose. Through cross-complaints, the state sought contractual indemnification from MacDonald; MacDonald sought contractual indemnification from San Jose; San Jose sought contractual indemnification from Erectors. The trial court found that the negligence of the state and MacDonald was not active, but that the negligence of Erectors was active. The trial court found that Erectors was San Jose’s agent. Each cross-complainant prevailed, and MacDonald, San Jose and Erectors appeal.

The indemnification judgment in favor of MacDonald and against San Jose must be reversed.

The contract between MacDonald and San Jose provided in part that San Jose “shall hold [MacDonald] free and harmless from any and all damage to said work caused in the performance of said Subcontract and also from any and all liability, costs and charges arising out of injuries or damages to any and all persons, employees and/or property in any way caused by [San Jose], its agents or employees.” “Since the parties expressly contracted with respect to [the indemnitor’s] duty to indemnify [the indemnitee], the extent of that duty must be determined from the contract and not from the independent doctrine of equitable indemnity. *418 [Citations.]” (Markley v. Beagle, 66 Cal.2d 951, 961 [59 Cal.Rptr. 809, 429 P.2d 129].)

San Jose contends that it is not liable to MacDonald under this provision because San Jose did not “cause” MacDonald’s liability. Specifically, San Jose argues as follows: the jury found that the employee’s injuries were caused by the negligence of tire state, MacDonald, and Erectors; the jury found that San Jose had not acted negligently toward the employee; San Jose was liable to indemnify MacDonald only for MacDonald's liabilities that were caused by San Jose, San Jose’s agents, or San Jose’s employees; Erectors was San Jose’s independent subcontractor, and the trial court erred in- treating Erectors as San Jose’s agent; therefore, MacDonald’s liability was caused by persons who were neither San Jose, nor San Jose’s agents, nor San Jose’s employees.

In opposition, however, MacDonald cites the case of Baldwin Contracting Co. v. Winston Steel Works, Inc., 236 Cal.App.2d 565, 576 [46 Cal.Rptr. 421] for the proposition that we may “interpret the term ‘agent’ . . . to cover more than the technical employees and hold that [the indemnitor] cannot avoid its indemnity obligation to [the indemnitee] by subcontracting its work out to other independent contractors [citations]." In addition, MacDonald argues that San Jose did cause MacDonald’s liability.. MacDonald reasons as follows: the contract between MacDonald and San Jose provided that “all rights and remedies reserved to [the state] under the general contract shall apply to and be possessed by [MacDonald] in its dealings with [San Jose]”; the contract between the state and MacDonald provided that MacDonald was to provide all safety equipment, and that “[n]o subcontractor will be recognized as such, and all persons engaged in the work of construction will be considered as employees of [MacDonald] and he will be held responsible for their work. . . .”; therefore, San Jose was under a duty to provide safety equipment, could not “delegate to Erectors the duty to provide safety nets,” and, as a consequence, “caused” MacDonald’s liability.

We need not resolve this conflict, for even if we assume arguendo that San Jose did cause MacDonald’s liability, MacDonald cannot prevail. 1

*419 In general, all contractual indemnity provisions fall within one of three classifications: 1'he first type of provision is that which provides “expressly and unequivocally” that the indemnitor is to indemnify the indemnitee for, among other things, the negligence of the indemnitee. Under this type of provision, the indemnitee is indemnified whether his liability has arisen as the result of his negligence alone (Vinnell Co. v. Pacific Elec. Ry. Co., 52 Cal.2d 411 [340 P.2d 604]), or whether his liability has arisen as the result of his co-negligence with the indemnitor (Markley v. Beagle, supra).

The second type of provision is that which provides that the indemnitor is to indemnify the indemnitee for the indemnitee’s liability “howsoever same may be caused” (Vinnell Co. v. Pacific Elec. Ry. Co., supra) or “regardless of responsibility for negligence” (Goldman v. Ecco-Phoenix Elec. Corp., 62 Cal.2d 40 [41 Cal.Rptr. 73, 396 P.2d 377]), or “arising from the use of the premises, facilities or services of [the indemnitee]” (Harvey Machine Co. v. Hatzel & Buehler, Inc., 54 Cal.2d 445 [6 Cal.Rptr. 284, 353 P.2d 924]), or “which might arise in connection with the agreed work” (Markley v. Beagle, supra), or “ ‘caused by or happening in connection with the equipment or the condition, maintenance, possession, operation or use thereof ” (Price v. Shell Oil Co., 2 Cal.3d 245 [85 Cal.Rptr. 178, 466 P.2d 722]), or “from any and all claims for damages to any person or property by reason of the use of said leased property” (Morgan v. Stubblefield, 6 Cal.3d 606 [100 Cal.Rptr. 1, 493 P.2d 465]). Under this type of indemnity provision, the indemnitee is indemnified from his own acts of passive negligence that solely or contributorily cause his liability, but is not indemnified for his own acts of active negligence that solely or contribntorily cause his liability. Our Supreme Court explains that an actively negligent indemnitee will not be indemnified under this type of provision because “[t]he indemnification agreement resembles an insurance agreement'" (Goldman v. Ecco-Phoenix Elec. Corp., supra, at p.

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Bluebook (online)
29 Cal. App. 3d 413, 105 Cal. Rptr. 725, Counsel Stack Legal Research, https://law.counselstack.com/opinion/macdonald-kruse-inc-v-san-jose-steel-co-calctapp-1972.