Smart v. International Harvester Co.

337 N.E.2d 68, 33 Ill. App. 3d 241, 1975 Ill. App. LEXIS 3144
CourtAppellate Court of Illinois
DecidedOctober 30, 1975
Docket74-411
StatusPublished
Cited by5 cases

This text of 337 N.E.2d 68 (Smart v. International Harvester Co.) is published on Counsel Stack Legal Research, covering Appellate Court of Illinois primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Smart v. International Harvester Co., 337 N.E.2d 68, 33 Ill. App. 3d 241, 1975 Ill. App. LEXIS 3144 (Ill. Ct. App. 1975).

Opinion

Mr. JUSTICE BARRY

delivered the opinion of the court:

Era Smart, an employee of Mechanical Handling Systems, Inc., was injured on August 1, 1968, in the course of his employment on the premises of the Farmall Plant of International Harvester Company, hereafter referred to as International, located in Rock Island, Illinois. Smart’s employer was a subcontractor of Anchor Steel and Conveyor Company, hereafter called Anchor. Anchor had previously entered into a purchase order contract with International for the installation of an overhead trolley conveyor system at the Rock Island plant. Smart was injured while employed on this construction project when a tractor fender fell from the overhead conveyor system that had been installed.

As a consequence of his injury Smart brought suit against International. After demanding indemnity from Anchor and tendering the defense of the same to Anchor, International settled with Smart for $27,500. International brought an action as third-party plaintiff against Anchor, the third-party defendant, seeking indemnity under a provision of the contract entered into between them on February 7, 1968. Both the third-party plaintiff and third-party defendant filed motions for summary judgment as to the question of liability under the indemnity provision contained in their contract for the construction of the overhead conveyor. The trial court granted the motion of Anchor for a summary judgment and denied the same motion made by the third-party plaintiff, International. In entering an order thereon the trial court recited that there was no just reason to delay enforcement or appeal of the order.

This appeal followed raising as the only issue for review whether the trial court properly interpreted the contract indemnity provision between the parties. Contained in the contract between the appellant, International, and Anchor was an indemnity provision drawn by International which was an attempt to protect them against all claims arising out of the construction project at their plant including their own negligent acts. The actual terms of the written contract provision are not in dispute. Since the meaning and legal effect of the terms used in that indemnity clause are disputed, we set out the clause in full:

“INDEMNITY. The Contractor agrees to protect, indemnify, save and hold harmless the Owner, its Subsidiaries, its officers, agents and employees, from and against all losses, costs and expenses, and from and against all claims, demands, suits and actions for damages, losses, costs and expenses, and from and against all liability awards, judgments and decrees; of whatever nature for any and all damage to property of others and of the parties hereto their officers, agents and employees, and of whatever nature for any and all injury or injuries (including death) to any person or persons (including the officers, agents and employees of the parties hereto) growing out of the work; resulting from, arising or in any way growing out of any of the acts or omissions either of the Owner, the Owners officers, agents or employees, or of any subcontractor of the Contractor, the subcontractor’s officers, agents or employees, in connection with the performance of the work under this contract.”

The term “owner” in the contract refers to International and the term “Contractor” is synonymous with Anchor.

From the facts detailed ir the record it appears that Anchor had not entirely completed the proposed construction when the injury to Smart occurred. In fact Anchor’s work had already extended beyond the scheduled completion date recited by the contract. The testimony indicated that International made a management decision to operate the conveyor even though the project was not fully completed. Testimony was also offered to show that International designed a protective screen for the conveyor which, although installed as a safety measure, failed to prevent the injury to Smart. Additionally the testimony of Richard Fleming, the International employee who initially operated the new conveyor, was that he was instructed by his supervising foreman not to stop the conveyor under any circumstances. This witness admitted that he saw the tractor fender strike a “tote box” which was stock-piled extremely close to conveyor causing the fender to become twisted on its hook so that it went through an opening at the top of the conveyor sideways in such a fashion that it became lodged in the opening. Mr. Fleming testified that a “jerking” of the conveyor occurred shortly before the fender fell indicating that it had in fact become lodged because it was too wide to pass through the opening, twisted sideways as it was. The witness admitted he could have stopped the conveyor when he became aware of the fact that the fender had become twisted sideways on its trip up tire conveyor but did not do so because of his supervisor’s orders even though several minutes elapsed before the fender actually fell. In total the evidence was sufficient to suggest a finding that International was negligent and was the proximate cause of the injury to Smart.

Nevertheless, International contends on appeal that the indemnity provision in its contract with Anchor contemplates that Anchor will hold International harmless even for International’s own negligent acts. The issue which is determinative of this appeal is whether the idemnity clause quoted from the parties contract is broad enough in language to cause Anchor to indemnify International from its own negligent acts.

Express contracts of indemnity against the consequences of one’s own negligence were previously upheld in Illinois. In recent years, however, the Illinois courts have applied rules of strict construction to contracts of indemnity against one’s own negligence and have refused to uphold the validity of such agreements in the absence of precise and express covenants. As the court stated in Westinghouse Electric Elevator Co. v. LaSalle Monroe Building Corp., 395 Ill. 429, 433, 70 N.E.2d 604, 607 (1946), “It is quite generally held that an indemnity contract will not be construed as indemnifying one against his own negligence, unless such construction is required by clear and explicit language of the contract.” Consistent with this trend the Illinois legislature, in 1971, specifically provided that such indemnity contracts were against public policy and wholly unenfor cable. Section 1 of “An Act in relation to indemnity in certain contracts” (Ill. Rev. Stat. 1971, ch. 29, § 61) which became effective September 23,1971, provides:

“With respect to contracts or agreements, either public or private, for the construction, alteration, repair or maintenance of a building, structure, highway bridge, viaducts or other work dealing with construction, or for any moving, demolition or excavation connected therewith, every covenant, promise or agreement to indemnify or hold harmless another person from that person’s own negligence is void as against public policy and wholly unenforceable.”

Subsequent to its effective date that statute was held to apply prospectively to contracts entered into after September 23, 1971. Zadak v. Cannon, 17 Ill.App.3d 74, 307 N.E.2d 605, reversed on other grounds, 59 Ill.2d 118, 219 N.E.2d 469 (1974).

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Bluebook (online)
337 N.E.2d 68, 33 Ill. App. 3d 241, 1975 Ill. App. LEXIS 3144, Counsel Stack Legal Research, https://law.counselstack.com/opinion/smart-v-international-harvester-co-illappct-1975.