Reading Co. v. Singelis

20 Pa. D. & C.2d 89, 1959 Pa. Dist. & Cnty. Dec. LEXIS 365
CourtPennsylvania Court of Common Pleas, Philadelphia County
DecidedJuly 24, 1959
Docketno. 5089
StatusPublished

This text of 20 Pa. D. & C.2d 89 (Reading Co. v. Singelis) is published on Counsel Stack Legal Research, covering Pennsylvania Court of Common Pleas, Philadelphia County primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Reading Co. v. Singelis, 20 Pa. D. & C.2d 89, 1959 Pa. Dist. & Cnty. Dec. LEXIS 365 (Pa. Super. Ct. 1959).

Opinion

Weinrott, J.,

— Plaintiff, Reading Company, entered into a contract with defendant painting company for the painting of plaintiff’s buildings in Port Reading, N. J. This contract contained the following indemnity provision which is pertinent to this action in assumpsit:

“And [Singelis] hereby assumes all liability for, and agrees to indemnify [Reading Co.] against all loss, cost or damages for or by reason of any liens, claims or demands for materials, or from laborers, mechanics and others, and any damages sustained by depositing materials to public injury, or to the injury of any person or corporation, including costs and expenses of defense, provided that he be duly notified of the bringing of suits in such cases, and be permitted to defend the same by his own counsel, if he should so elect, and any damages arising from injuries, deaths and losses sustained by mechanics, laborers or other persons, by reason of accidents or otherwise.”

In the course of the work progress one Joseph E. Elko, Jr., an employe of defendant, was injured when a broken part extending from a Reading Company freight car struck the scaffold on which he was working, throwing him to the ground. Elko instituted an action against the Reading Company in New Jersey where he recovered a verdict for the sum of $60,000.

Plaintiff, Reading Company, sought reimbursement from defendant under the above-quoted indemnity provision in the contract, and asked in a second cause of. action for contribution from defendant as a joint tortfeasor. This latter claim was abandoned because [91]*91of the New Jersey law which prohibits the payment of contribution as a joint tortfeasor by an employer paying workmen’s compensation to an injured employe.

At trial, plaintiff introduced into evidence the agreement between the parties and the admission contained in defendant’s answer that one Elko had secured a judgment which resulted in the expenditure by plaintiff, Reading Company, of $67,226.26, for satisfaction of the judgment and the payment of counsel fees, costs and expenses. Defendant then introduced into evidence the record of the trial in the case of Elko v. Reading Co., Superior Court of New Jersey, L. D. Middlesex County, Document #L-7252-52. We thereupon entered an order finding in favor of defendant Singelis and against plaintiff Reading Company.

Thereafter, plaintiff filed these exceptions to the decision of the trial court which again brings this matter before us.

It is the position of plaintiff, Reading Company, that it need only offer the indemnity agreement and judgment and then rest. This assertion is based on two grounds: One, that the indemnity agreement is broad enough to encompass any negligence on the part of plaintiff or its employes; and secondly, that even assuming that the indemnity provision may not be so construed, the burden of proof befalls defendant to show that the accident resulted from the sole or joint negligence of the Reading Company. Plaintiff argues that even under the more restricted interpretation of the agreement, if defendant proves that the injuries to Elko occurred as a result of the joint negligence of both parties, he would be required to pay only one half of the judgment, counsel fees and costs, and that if defendant demonstrates that the said injuries were the product of the negligence of plaintiff only then defendant would be absolved of liability.

[92]*92We shall first consider the scope of defendant’s undertaking in the light of the applicable law and the particular circumstances surrounding it. In the absence of a clear expression of intent to the contrary, a contract of indemnity will not be construed to indemnify against the negligence of the indemnitee: Perry v. Payne, 217 Pa. 252; Darrow v. Keystone 5, 10, 25, $1.00 Stores, Inc., 365 Pa. 123; Tidewater Field Warehouses, Inc. v. Fred Whitaker Company, Inc., 370 Pa. 538. However, a person may indemnify himself against his own negligence provided the intention to do so is clearly expressed: Jacob Siegel Company v. Philadelphia Record Company, 348 Pa. 245.

Defendant contends that the rule of Perry v. Payne, supra, has been liberalized by the Tidewater case, supra. Both the indemnity provision and the surrounding circumstances in that case, however, are quite different. The agreement there provided that Whitaker should maintain and pay at its own cost and expense adequate liability insurance for injuries to any persons except employes of Tidewater on or about the demised premises, and Whitaker assumed and agreed to pay all damages to property of persons upon the demised premises and to save Tidewater harmless therefrom. A reading of it in its context reveals that its real effect was to protect Tidewater from any suit for damages which might arise during the term of the lease. Whitaker owned the wool and it also had possession of the warehouse. It leased the warehouse to Tidewater for $1, and at the same time entered into a warehouse agreement whereby Whitaker supplied all of the labor, but such labor was under control of Tidewater while working in the warehouse. Tidewater had no right to select the men to do the work under the agreement; its only right was to control the men while performing the work. Tidewater maintained only one part-time employe on the premises and he [93]*93was also in the general employ of Whitaker. In other words, both property and labor were actually Whitaker’s, and Tidewater was brought in solely for the purpose of meeting government requirements for the avoidance of the immediate payment of the duty on the wool owned by Whitaker.

Under such circumstances, it was both logical and practical that Tidewater should insist on protection against negligence of those employes who had been selected for it by Whitaker. It was for that reason that the broad all-inclusive indemnity clause was construed to indemnify against the negligence of the indemnitee.

We find no liberalization of the rule of construction that in the absence of a clear expression of intent to the contrary, a contract of indemnity will not be construed to indemnify against the negligence of the indemnitee. When we compare the situation involved in the instant case with that of the Tidewater case, supra, it becomes very evident that the greater number of employes about Port Reading, N. J., were those of plaintiff railroad; that defendant had no right to select or control them and that in its undertaking to paint certain buildings there, defendant could not have undertaken to indemnify plaintiff against damages arising from the negligence of plaintiff’s own employes.

The analogy of the instant case to Perry v. Payne, supra, is contained in the following excerpt from that opinion, at page 259:

“It is contrary to experience and against reason that the contractors should agree to indemnify Perry against the negligence of himself or his employees. It would make them insurers, and impose a liability upon the contractors, the extent of which would be uncertain and indefinite, and entirely in the hands of Perry. The results of such a liability might become most disastrous.”

[94]*94The consideration named in the contract for the painting of the buildings and indemnifying the owner was wholly inadequate to justify defendant’s assuming liability for his negligence. A single act of negligence on the part of plaintiff, over whom defendant would have no restraint or control whatever, might create a liability which a lifetime of successful business could not repay.

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Related

Darrow v. Keystone 5, 10, 25, $1.00 Stores, Inc.
74 A.2d 176 (Supreme Court of Pennsylvania, 1950)
Jacob Siegel Co. v. Philadelphia Record Co.
35 A.2d 408 (Supreme Court of Pennsylvania, 1943)
Perry v. Payne
66 A. 553 (Supreme Court of Pennsylvania, 1907)
Orth v. Consumers Gas Co.
124 A. 296 (Supreme Court of Pennsylvania, 1924)
Tidewater Field Warehouses, Inc. v. Fred Whitaker Co.
88 A.2d 796 (Supreme Court of Pennsylvania, 1952)

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Bluebook (online)
20 Pa. D. & C.2d 89, 1959 Pa. Dist. & Cnty. Dec. LEXIS 365, Counsel Stack Legal Research, https://law.counselstack.com/opinion/reading-co-v-singelis-pactcomplphilad-1959.