Ranger Insurance v. Shop Rite, Inc.

921 So. 2d 1040, 2006 La. App. LEXIS 36, 2006 WL 119123
CourtLouisiana Court of Appeal
DecidedJanuary 17, 2006
DocketNo. 05-CA-452
StatusPublished
Cited by4 cases

This text of 921 So. 2d 1040 (Ranger Insurance v. Shop Rite, Inc.) is published on Counsel Stack Legal Research, covering Louisiana Court of Appeal primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Ranger Insurance v. Shop Rite, Inc., 921 So. 2d 1040, 2006 La. App. LEXIS 36, 2006 WL 119123 (La. Ct. App. 2006).

Opinion

JAMES L. CANNELLA, Judge.

| ¡¿The Plaintiff, Ranger Insurance Company (Ranger), appeals from the trial court judgment rendered in favor of the Defendant, Shop Rite, Inc. (Shop Rite), finding that Shop Rite did not owe indemnity to Ranger for a tort judgment which Ranger paid on behalf of its insured, Thibaut Oil Company (Thibaut). For the reasons which follow, we affirm.

On December 23, 1992, Dwayne Jeffery (Jeffery) was attempting to pump gasoline into his automobile at Shop Rite’s convenience store when the gasoline dispensing hose broke and gasoline sprayed onto Jeffery and into his eyes. The gasoline hose and pumps at issue were owned by Thi-baut. Thibaut was insured by Ranger. Thibaut leased the gasoline dispensers to Shop Rite through a lease agreement dated June 9, 1989. As a result of his injuries, Jeffery filed suit against Thibaut and Ranger, alleging both negligence and strict liability. Following a jury trial, Thibaut was found liable to Jeffery in the amount of $695,675. The judgment | awas affirmed on appeal. Jeffery v. Thibaut Oil Company, 94-851 (La.App. 5th Cir.3/1/95), 652 So.2d 1021, writ denied, 95-816 (La.5/5/95), 654 So.2d 330. Ranger satisfied the judgment then filed suit against Shop Rite, seeking contractual indemnity for the [1042]*1042judgment as well as $40,951 for its cost of defense.

In support of its position, Ranger relies on language in the lease agreement between Thibaut and Shop Rite that provided:

... Lessee [Shop Rite] shall indemnify and hold harmless Lessor [Thibaut] against all claims, suits, losses, costs and liabilities on account of any injuries or damages to any persons or property caused by or happening in connection with the premises and/or use of equipment in the operation of the premises or the condition, maintenance or use thereof or operations thereof.

Shop Rite denied the claim, arguing that, because the indemnity language in the lease agreement was in the same paragraph which described the parties’ relationship, the indemnification due was limited by the terms of that relationship. The beginning of the paragraph containing the indemnity provision states:

RELATIONSHIP OF THE PARTIES

Lessee [Shop Rite] is and will continue to be an independent merchant not to be considered in any way subject to the control of the Lessor [Thibaut]. Lessee’s [Shop Rite’s] status with Lessor [Thibaut] shall be solely as a tenant in possession in this connection, Lessor [Thibaut] shall not be responsible for any act or omission on the part of any agents or employees or officers of Lessee [Shop Rite] which may or does cause or do damage to persons or property lawfully on the premises and who may operate to perform any duties or functions in connection with Lessee’s [Shop Rite’s] obligations under this lease. In this connection, .... (indemnity provision quoted above).

The trial court first considered the indemnity issues in motions for summary judgment, wherein it partially granted Shop Rite’s motion, finding that it did not have to indemnify Thibaut for Thibaut’s own negligence, but only for its (Shop 1¿Rite’s) own negligence insofar as it contributed to Jeffery’s injuries. Since the negligence of Shop Rite was a factual matter, the trial court denied Ranger’s motion for summary judgment and set the matter for trial.

Following trial, the trial court rendered judgment in favor of Shop Rite and dismissing Ranger’s claim for contractual indemnity. In its oral reasons for judgment, the trial court reasoned that since the indemnity provision was in the same paragraph with a description of the parties’ relationship and was introduced with the phrase “[i]n this connection,” the indemnity obligations were limited to the contractual obligations assumed under the lease agreement. The trial court further found that Shop Rite did not have a duty to inspect the hose, especially at the level involved here, six to eight feet above the ground, and, therefore, Shop Rite was not negligent. It is from this judgment that Ranger appeals.

On appeal, Ranger assigns three errors and contends that this Court should review the case de novo.

It is well settled that questions of law are not reviewed on appeal under the manifest error/clearly wrong standard of review. Contractual interpretation is a question of law. Paddison Builders, Inc. v. Newpark Square One Condominiums, 03-144 (La.App. 5th Cir.6/3/03), 848 So.2d 750. When addressing questions of law, a reviewing court conducts a de novo review. Campbell v. Markel American Insurance Company, 00-1448 (La.App. 1st Cir.9/21/01), 822 So.2d 617. On the other hand, some cases present both questions of law and fact, the latter of which are reviewed under the manifest error standard.

[1043]*1043In Ranger’s first two assigned errors, it argues that the trial court erred in concluding that the scope of Shop Rite’s , contractual indemnity obligations should be limited by the delineated contractual duties that Shop Rite assumed under the | Klease agreement and by not finding that Shop Rite .was obligated to indemnify Ranger for strict liability claims.

The general rules which govern the interpretation of other contracts apply in construing a contract of indemnity. Soverign Ins., Co. v. Texas Pipe Line Co., 488 So.2d 982 (La.1986); T.L. James & Co., Inc. v. Sam’s Truck Service, Inc., 03-1470 (La.App. 5th Cir.5/26/04), 875 So.2d 977.

As noted by the Louisiana Supreme Court in Campbell v. Melton, 01-2578 (La.5/14/02), 817 So.2d 69:

In interpreting contracts, we are guided by the general rules contained in articles 2045-2057 of the Louisiana Civil Code. The interpretation of a contract is the determination of the common intent’ of the parties with courts giving the contractual words their generally prevailing meaning unless the words .have acquired a technical meaning. La. Civ. Code arts.2045, 2047; See e.g., Louisiana Ins. Guar. Ass’n v. Interstate Fire & Casualty Co., 93-0911 (La.1994), 630 So.2d 759, 763. When the words of a contract are clear and explicit and lead to no absurd consequences, no further interpretation may be made in search of the intent of the parties. La. Civ. Code art.2046.

Further, each provision in an agreement must be interpreted in light of the other provisions so that each is given the meaning suggested by the agreement as a whole. La. C.C. art.2050. Alco Collections, Inc. v. Poirier, 952582 (La.App. 1st Cir.9/27/96), 680 So.2d 735, writ denied, 96-2628 (La.12/13/96), 692 So.2d 1067; Security Center Protection Services, Inc. v. Lafayette Sec. & Electronic Systems, Inc., 95-693 (La.App. 5th Cir.1/17/96), 668 So.2d 1156, writ denied, 96-0428 (La.3/29/96), 670 So.2d 1217. Although a contract is worded in general terms, it must be interpreted to cover only those things it appears the parties intended to include. La. C.C. art.2051.

Applying these legal principles to the case before us, we agree with the trial court’s interpretation of the contract. As noted above, the indemnity provision | (¡does not stand alone in the agreement.

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921 So. 2d 1040, 2006 La. App. LEXIS 36, 2006 WL 119123, Counsel Stack Legal Research, https://law.counselstack.com/opinion/ranger-insurance-v-shop-rite-inc-lactapp-2006.