SpawGlass, Inc. and SpawGlass Construction Corporation v. E.T. Services, Inc.

143 S.W.3d 897, 2004 Tex. App. LEXIS 7691, 2004 WL 1902375
CourtCourt of Appeals of Texas
DecidedAugust 26, 2004
Docket09-03-00596-CV
StatusPublished
Cited by1 cases

This text of 143 S.W.3d 897 (SpawGlass, Inc. and SpawGlass Construction Corporation v. E.T. Services, Inc.) 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
SpawGlass, Inc. and SpawGlass Construction Corporation v. E.T. Services, Inc., 143 S.W.3d 897, 2004 Tex. App. LEXIS 7691, 2004 WL 1902375 (Tex. Ct. App. 2004).

Opinion

OPINION

PER CURIAM.

This case involves the application of the “express negligence rule” to an indemnity contract between a contractor and a subcontractor. The contract provided “Subcontractor agrees to ... indemnify Contractor ... against and for all liability ... and damages which Contractor may ... become liable for by reason of any ... injuries ... to ... the workmen of either party ... in any matter arising out of or resulting from Subcontractor’s performance ... hereunder, ... including, but not limited to, any negligent act or omission ... of Contractor....” One of the subcontractor’s workers sued the contractor for negligence, and the contractor filed a third-party claim against the subcontractor. The trial court granted summary judgment for the subcontractor. We hold that the intent expressly stated within the four corners of the contract exculpates the contractor from the consequences of its own negligence that resulted in injury to the subcontractor’s worker. We also hold that, because the worker was injured while performing work for the subcontractor, the claim arises out of the performance of the contract. We further hold that the contractor is entitled to indemnity from the subcontractor. Accordingly, we reverse the summary judgment and remand the cause to the trial court for further proceedings consistent with this opinion.

When, as here, both sides move for summary judgment and the trial court grants one motion and denies the other, the reviewing court reviews the summary judgment evidence presented by both sides and determines all questions presented. Commissioners Court of Titus County v. Agan, 940 S.W.2d 77, 81 (Tex.1997). If the issue raised is based upon undisputed and unambiguous facts, we may determine the question presented as a matter of law. Gramercy Ins. Co. v. MRD Invs., Inc., 47 S.W.3d 721, 724 (Tex.App.-Houston [14th Dist.] 2001, pet. denied). If resolution of the issues rests on disputed facts, however, we reverse and remand for further proceedings. Coker v. Coker, 650 S.W.2d 391, 394-95 (Tex.1983).

Under the terms of the contract between contractor SpawGlass Construction Corporation and subcontractor E.T. Services, Inc. (“ETS”), ETS agreed to perform structural steel erection for Spaw-Glass Construction Corporation at the Ca-ney Creek High School. Brian Sanders, an ETS employee working as a connector welder, avers that he was rolling up an oxygen hose when he was struck by a three by six foot piece of plywood. The appellee’s motion for summary judgment *899 alleges that a gust of wind blew the plywood off of the roof during a sudden storm. Sanders sued SpawGlass Construction Corporation and SpawGlass, Inc. (collectively “SpawGlass”) 1 for negligence, and SpawGlass sought indemnity from ETS. ETS and SpawGlass filed cross-motions for summary judgment. The trial court denied the SpawGlass motion, granted the ETS motion, and severed the third-party claim from the main suit. On appeal, SpawGlass contends the contract clearly and unambiguously requires ETS to indemnify Spawglass for claims of injury to ETS’s workers attributable to Spaw-Glass’s negligence. ETS, on the other hand, contends the indemnity provision is ambiguous and that the indemnity applies only to injuries resulting from ETS’s performance.

The express negligence rule requires that the intent of the party seeking indemnity from the consequences of that party’s own future negligence must be expressed in unambiguous terms within the four corners of the contract. Ethyl Corp. v. Daniel Constr. Co., 725 S.W.2d 705, 708 (Tex.1987). The indemnity clause in this case derives from a clause the Supreme Court held was enforceable under the express negligence doctrine. See Atlantic Richfield Co. v. Petroleum Personnel, Inc., 768 S.W.2d 724, 726 (Tex.1989). 2 To distinguish its agreement to indemnify Spaw-Glass from the Atlantic Richfield indemnity, ETS relies on the additional language contained within the contract’s responsibility-shifting provision. To the Atlantic Richfield language “including, but not limited to, any negligent act or omission” of the indemnified party, the contract in this case added words “or claim involving strict liability or negligence per se of’ Spaw-Glass. The addition of this phrase, the appellee contends, makes the indemnity clause ambiguous. We disagree. The language contained in a contract is accorded its plain grammatical meaning unless to do so would defeat the parties’ intent. See DeWitt County Elec. Co-op. v. Parks, 1 S.W.3d 96, 101 (Tex.1999). The drafter did not separate “any negligent act or omission or claim involving strict liability” from “or negligence per se of Contractor,” and the subject phrase “any negligent act or omission” makes sense only in conjunction with the prepositional phrase “of Contractor or Owner.” We conclude that the indemnity clause in this contract satisfies the express negligence rule.

The appellee argues that, “regardless of whether the provision meets the express negligence test, indemnity does not apply because the circumstances of the incident did not trigger the indemnity provision.” ETS contends that indemnity may only be triggered if the incident arose out of its performance, not its mere presence on the site. ETS relies on two cases that pre-date Ethyl and the adoption of the express negligence test. See Sun Oil Co. v. Renshaw Well Serv., Inc., 571 S.W.2d 64 (Tex.Civ.App.-Tyler 1978, writ ref'd n.r.e.), and Westinghouse Elec. Corp. v. Childs-Bellows, 352 S.W.2d 806 (Tex.Civ.App.-Fort Worth 1961, writ ref'd). The contracts in those cases included some language similar to that found in the *900 ETS/SpawGlass contract, but lacked the express inclusion of negligent acts or omissions of SpawGlass found within the indemnity undertaken by ETS. 3

In this case, the worker was allegedly injured in the performance of ETS’s work under the SpawGlass contract. The contract expressly provided that ETS would indemnify SpawGlass against liability for SpawGlass’s negligent act that injured ETS’s worker. Although the appellee contends that the injury arose from Spaw-Glass’s performance completely unrelated to the work ETS and its worker were hired to perform, the contractor, the subcontractor, and the worker were all engaged in the construction of a high school auditorium.

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143 S.W.3d 897, 2004 Tex. App. LEXIS 7691, 2004 WL 1902375, Counsel Stack Legal Research, https://law.counselstack.com/opinion/spawglass-inc-and-spawglass-construction-corporation-v-et-services-texapp-2004.