Pacella Bros. v. Metropolitan District

259 F. Supp. 715, 1966 U.S. Dist. LEXIS 8039
CourtDistrict Court, D. Connecticut
DecidedFebruary 3, 1966
DocketCiv. No. 11042
StatusPublished
Cited by1 cases

This text of 259 F. Supp. 715 (Pacella Bros. v. Metropolitan District) is published on Counsel Stack Legal Research, covering District Court, D. Connecticut primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Pacella Bros. v. Metropolitan District, 259 F. Supp. 715, 1966 U.S. Dist. LEXIS 8039 (D. Conn. 1966).

Opinion

RULING ON MOTION FOR SUMMARY JUDGMENT

BLUMENFELD, District Judge.

The plaintiff, Pacella Bros., Inc., (hereinafter Pacella), moves for summary judgment against the defendant, The Metropolitan District, (hereinafter District), in the amount of $30,269.07, the balance of the price agreed upon in a contract under which Pacella undertook the construction of a certain intercepting sewer. A copy of a standard construction contract executed by the parties is attached to the complaint. The answer filed by the District was a simple denial of the allegations of the complaint. Answers to a portion of Paeella’s request for admission of facts admit that the work and materials required by the contract have been furnished and that on the basis of an approval by the District’s engineers of a final estimate the defendant is retaining a balance of $30,269.07.

However, in response to the request for an admission that the plaintiff has completed performance of the contract, the District answered: “The plaintiff has failed to defend and save harmless the defendant from claims arising out of the work performed by the plaintiff or its agents or servants in violation of sections 306 and 308 of said contract.” At this point, the District’s defense first appears. It is expanded into the real issue between the parties by coupling to [717]*717this response those documents attached to an affidavit in support of the plaintiff’s motion, which consist of a pre-litigation letter to Pacella from the District stating that “the defense and settlement of three suits against The Metropolitan District, et al are the only remaining issues pertaining to this contract;” and copies of the complaints in the suits referred to. These actions were brought in the state court against the District, Pacella, and the latter’s subcontractor, Connecticut Rambore Corporation, by The Grove Realty Co., The American Tobacco Co. and The Hatheway-Steane Corp., and by The Hartman Tobacco Co., owners of property fronting on the street in which the sewer was laid claiming damages aggregating $97,500.00 allegedly resulting from the manner in which the work was done. The suits are still pending. Had the defendant in its answer denied “specifically and with particularity” the plaintiff’s performance of contractual conditions as Rule 9(c) requires, the issue of whether the defendant is entitled to retain the balance under the terms of the contract until it is indemnified and saved harmless from the claims asserted against it in the three pending state court law suits would have been directly presented at the outset.

The Bight to Indemnity

The plaintiff’s argument — if I follow it correctly — seems to be first that because the damages suffered by the state court plaintiffs were caused by negligent conduct alleged generally to have been engaged in by all the defendants, there is a basis for holding the District liable for its own negligence. The next step in the argument is that the indemnity provision in the con's tract1 cannot be construed to require Pacella to indemnify the District against its own acts or omissions. Cf. Kaplan v. Merberg Wrecking Corp., 152 Conn. 405, 207 A.2d 732 (1965). But this fails to take into account other aspects of those claims which it may be useful to consider. The critical question is whether those are claims against the District based only on tortious conduct of the District. Indeed, they are much broader, for a central allegation is that the “ramming” or “jacking” procedures employed by Pacella and its subcontractor were negligently conducted. Although additional facts are alleged, which if proved might support a theory for holding the District liable under one of the rare exceptions to the general rule that “the contractee * * * is not liable, for injuries caused by an independent contractor or his servants, to any one,” Douglass v. Peck & Lines Co., 89 Conn. 622, 627, 95 A. 22, 24 (1951), there is not, at this stage of the proceedings, here or in the state court, any evidence to support a finding that the District’s own conduct is the sole ground on which the state court plaintiffs may recover. There is nothing but the allegation in the complaints of the stated plaintiffs. Until judgment is rendered in the state court suit, it is uncertain which defendants will be held liable. In the event that the plaintiffs obtain verdicts against all defendants, that would not foreclose the right of the District to indemnity from Pacella, even in the absence of any contractual right. See, e. g., Preferred Acc. Ins. Co. v. Musante, Berman & Steinberg Co., 133 Conn. 536, at 540, 52 A.2d 862, at 864 (1947), which holds that where both parties have been held liable in negligence toward an [718]*718injured plaintiff, that judgment is not “ ‘res judicata or conclusive of the rights and liabilities of the defendants inter se in a subsequent action [by one to recover indemnity from the other] * * *.’ ” As of now, it is uncertain whether the unliquidated claims of the three landowners will ever ripen into judgments against any, some, or all of the defendants they are suing. On the other hand, it is certain that it cannot now be held that they can obtain judgments only against the District on the ground that it was the sole tortfeasor. The application of the equitable principle of indemnity to which Connecticut’s courts adhere, Preferred Acc. Ins. Co. v. Musante, Berman & Steinberg Co., supra; Fidelity & Cas. Co. v. Jacob Ruppert, 135 Conn. 307, 311-312, 63 A.2d 849 (1949), will enable the District to recover from Pacella- the amount of any judgment it may pay in the event of a determination that the District is held liable only on the theory of “constructive fault” and not “primarily.”

The Right to Retain the Funds

Equitable principles aside, the pertinent portion of the contract itself (n. 1, supra) must be construed to create a right in the District to indemnity from Pacella. By itself, a right to indemnity does not permit the District to resort to self-help to retain funds which admittedly are owed to Pacella. Under like circumstances, an insurance policy indemnifying the District against loss would not permit it to recover from the insurer until the liability was discharged. See Morehouse v. Employers’ Liab. Assur. Corp., 119 Conn. 416, 177 A. 568 (1935); Shea v. United States Fid. & Guar. Co., 98 Conn. 447, 452, 120 A. 286 (1923); Bristol Trust Co. v. National Sur. Co., 97 Conn. 198, 203, 116 A. 251 (1922).

But the District does not attempt to rely on an equitable doctrine of “self-help” to justify its retention of the funds which admittedly are owed to Pacella. It defends its right to retain those funds under the express terms of the contract between the parties. The provision which establishes that right is paragraph 3.19, the pertinent portion of which provides, in part, as follows:

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Related

Pacella Bros., Inc. v. The Metropolitan District
366 F.2d 777 (Second Circuit, 1966)

Cite This Page — Counsel Stack

Bluebook (online)
259 F. Supp. 715, 1966 U.S. Dist. LEXIS 8039, Counsel Stack Legal Research, https://law.counselstack.com/opinion/pacella-bros-v-metropolitan-district-ctd-1966.