Smith v. Ohio Oil Co.

356 S.W.2d 443, 1962 Tex. App. LEXIS 2380
CourtCourt of Appeals of Texas
DecidedApril 4, 1962
DocketNo. 5519
StatusPublished
Cited by5 cases

This text of 356 S.W.2d 443 (Smith v. Ohio Oil Co.) is published on Counsel Stack Legal Research, covering Court of Appeals of Texas primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Smith v. Ohio Oil Co., 356 S.W.2d 443, 1962 Tex. App. LEXIS 2380 (Tex. Ct. App. 1962).

Opinions

LANGDON, Chief Justice.

This is a summary judgment case. The principal question is whether a contractor, engaged by the owner of an oil and gas lease to perform work-over or reworking operations upon such oil and gas lease, is obligated to appellee, under the terms and provisions of an indemnity contract, to indemnify the owner against liability for injuries sustained by an employee of contractor, resulting from the negligence of the owner, the accident having occurred while contractor was performing work and services for the owner.

[444]*444On or about March 31, 1953, The Ohio Oil Company (appellee) was the owner and operator of certain oil and gas wells in Lea County, New Mexico, and on that date appellee and Darrell Smith (appellant) entered into a written contract by the terms of which appellant agreed to perform certain work-over services on one of these wells operated by appellee in New Mexico. On or about April 18, 1953, one Alva A. Hunt, who was an employee of appellant, was injured while working for appellant in the performance of the work-over services under the contract. Hunt’s injuries were sustained when he fell from a test tank owned by appellee The Ohio Oil Company and furnished to appellant for use in performing the work-over operations pursuant to the contract. It is admitted by all parties that the injuries sustained by the employee were serious.

As the result of the injuries sustained by Hunt, a suit was filed in the District Court of Lea County, New Mexico, on or about April 17, 1958, in which Alva A. Hunt and Houston Fire and Casualty Insurance Company were plaintiffs, and ap-pellee herein was named defendant. Damages were sought in the sum of $250,000.00. Hunt alleged that his injuries were proximately caused by negligence on the part of The Ohio Oil Company in the performance of some duty which the company owed him. Appellant, Darrell Smith, had notice of the filing of the suit, but was not made a party thereto and refused to defend or participate in such suit when called upon to do so by The Ohio Oil Company. Appellant, Darrell Smith, having refused to defend the suit, appellee proceeded to compromise and settle the Hunt case, and an agreed judgment was entered therein. Thereafter, appellee instituted the instant suit in the District Court of Midland County, Texas, against appellant Darrell Smith, seeking recovery of $15,000.00 paid by it in satisfaction of the agreed judgment in the Hunt case, as well as attorneys’ fees and other expenses incurred by it in the defense and settlement of such case.

From the summary judgment awarding appellee the sum of $19,206.50, appellant has perfected this appeal.

Appellant’s first three points are based upon the contention that the indemnity provisions of the contract do not indemnify appellee against damages resulting from appellee’s own negligent conduct; that the indemnifying provisions of the contract between appellant and appellee do not contain language covering the cause of action asserted by Hunt in the New Mexico case; and that the trial court erred in granting appellee judgment based on the amount paid to Alva A. Hunt in settlement of the New Mexico action.

Third party actions such as the one here involved have given rise to an ever-increasing number of law-suits where the single question involved is a determination of whether the provisions of an indemnity contract may be so construed as to indemnify a person against his own negligence.

The courts of almost every jurisdiction pay lip service, at least, to the general rule that * * * contracts will not be construed to indemnify a person against his own negligence unless such intention is expressed in unequivocal terms.” Others say that such construction “ * * * must be required by clear and explicit language of the contract.” A federal court has held that “Under New York law, a person is not entitled to be indemnified against liability to which his own active negligence contributed unless the contract expresses that intention beyond all doubt.” Thompson-Starrett Co., Inc. v. Otis Elevator Co., 271 N.Y. 36, 2 N.E.2d 35 (1936); County of Alameda v. Southern Pacific Co. et al., 55 Cal.2d 479, 11 Cal.Rptr. 751, 360 P.2d 327 (1961); Cozzi v. Owens Corning Fiber Glass Corp. et al., 59 N.J.Super. 570, 158 A.2d 231 (1960) ; Miller v. The Pennsylvania Railroad Co., 236 F.2d 295 (2 Cir. 1956). But, to the contrary, several recent cases can be found that allow indemnity for one’s own negligence even though words of general import are used to express such [445]*445intent. Bounougias v. Republic Steel Corp., 277 F.2d 726 (7 Cir. 1960), where the language, “In the consequence of the carrying on by the Seller of the work,” was held to express such intent; Princemont Construction Corp. v. Baltimore & Ohio Railroad Co., D.C.Mun.App., 131 A.2d 877 (1957)— “In connection with or growing out of the use of said premises”; Hartford Accident & Indemnity Co. v. Worden-Allen Co., 238 Wis. 124, 297 N.W. 436 (1941)— ’“Due to, arising from, or connected with your operations on this job”; Russell Continental Casualty Co. v. Shell Oil Co., Inc., 339 Ill.App. 168, 89 N.E.2d 415 (111.1949) — “Resulting from or arising in connection with any of contractor’s operations”; St. Paul Mercury Indemnity Co. v. Kopp, Ohio App., 121 N.E.2d 23 (1954) —“Growing out of or in any way connected with the performance of the work.” However, most text book authorities have adopted the rule of strict construction. 175 A.L.R. 144, Sec. 68.

We would draw a distinction between the cases involving the rental of equipment and lease agreements covering real and personal property, on the one hand, and cases involving agreements between owners and contractors on the other. In the first type of case the indemnitor is generally the lessee who agrees to take specified machinery, equipment, land, buildings or premises “in the condition in which he finds them”; the determination on the question of whether the subject matter of the lease is “safe” and whether it is suitable for the purposes for which it is to be leased are questions most often left up to the lessee. In addition, factors involving the degree of control, the exclusive nature of possession and other incidents of the .relationship created by such agreements, when coupled with an agreement on the part of the lessee to “indemnify” or “hold harmless” the owner or lessor thereof from damages growing out of or connected with the lessee’s use or occupancy of the instrumentality or premises, renders it unnecessary for the parties to say in so many words that the indem-nitor intended to protect the indemnitee against liability for negligence.

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356 S.W.2d 443, 1962 Tex. App. LEXIS 2380, Counsel Stack Legal Research, https://law.counselstack.com/opinion/smith-v-ohio-oil-co-texapp-1962.