Stafford Enterprises, Inc. v. American Cyanamid Co.

297 S.E.2d 307, 164 Ga. App. 646, 1982 Ga. App. LEXIS 2902
CourtCourt of Appeals of Georgia
DecidedNovember 10, 1982
Docket64373
StatusPublished
Cited by15 cases

This text of 297 S.E.2d 307 (Stafford Enterprises, Inc. v. American Cyanamid Co.) is published on Counsel Stack Legal Research, covering Court of Appeals of Georgia primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Stafford Enterprises, Inc. v. American Cyanamid Co., 297 S.E.2d 307, 164 Ga. App. 646, 1982 Ga. App. LEXIS 2902 (Ga. Ct. App. 1982).

Opinions

Quillian, Chief Judge.

The litigation which preceded the present appeal had its beginnings when on July 10,1975, one Ring, an employee of Stafford Enterprises (hereinafter Stafford) while working on the premises of American Cyanamid (hereinafter Cyanamid) fell from a scaffold and was instantly killed. His widow, Robbie Sue Ring, brought a negligence action against Cyanamid. The latter then impleaded Stafford as a third-party defendant, alleging that Ring was an employee of Stafford at the time of his death, and that the corporations had a contract containing an indemnity agreement by which Stafford agreed to hold Cyanamid harmless for all damages not caused by the sole negligence of Cyanamid.

The case was tried and the jury returned a special verdict in favor of Ring against Cyanamid, finding that, although the deceased Ring had been guilty of contributory (comparative?) negligence amounting to 27.5 %, Cyanamid was guilty of negligence proximately causing Ring’s death. The jury also found that there was no agreement in effect between the two corporations on the date of Ring’s death, that is, July 10, 1975. This case was appealed to the Court of Appeals and our Court affirmed in American Cyanamid Co. v. Ring, 158 Ga. App. 525 (281 SE2d 247). In that case, this Court found, as to the contract between the two corporations, which was dated July 1,1975, but not executed until July 15,1975, that since the death occurred on July 10, 1975, Stafford’s indemnity was not in effect at the time of Ring’s death.

On certiorari, Americian Cyanamid Co. v. Ring, 248 Ga. 673 (286 SE2d 1), the Supreme Court reversed. In its decision, the Supreme Court pointed out: “At trial, American Cyanamid moved for a directed verdict on the ground that, as a matter of law, the second contract was in effect on July 1,1975, and, thus, the indemnity clause operated to relieve it of liability for Ring’s death on July 10,1975. The trial court denied the motion, determining that the two dates on the contract created an ambiguity which was appropriate for the jury to resolve. The jury returned a special verdict finding, inter alia, that Ring’s death was not due to the sole negligence of American Cyanamid and that there was no contract in effect between Stafford and American Cyanamid on July 10, 1975. Judgment was entered against American Cyanamid.” (Emphasis supplied). Id. p. 674. The Court then proceeded to hold: “Contrary to the implication of the Court of Appeals’ opinion, the effective date of a contract is not the date of execution where the contract expressly states that its terms [647]*647are to take effect at an earlier date. ‘It is elemental that contracting parties may agree to give retroactive effect... to their contracts as they may see fit.’ [Cit.] And, ‘(i)t is fundamental that where parties to an agreement expressly provide that a written contract be entered into “as of’ an earlier date than that on which it was executed, the agreement is effective retroactively “as of’ the earlier date and the parties are bound thereby...’ [Cits.] Examining the contract between American Cyanamid and Stafford on its face, we conclude, from the position of the date ‘July 15,1975’ at the bottom of the contract and from the clear language of the contract stating it was effective ‘as of July 1,1975’ that Stafford’s agent intended for July 15,1975 to be a notation of the date of execution rather than the effective date of the contract. Therefore, we hold the Court of Appeals erred in finding that American Cyanamid was not entitled to a directed verdict on the issue of the effective date of the contract.” Id. p. 675.

On remand to this Court, counsel for Stafford made essentially the same argument he is now urging in the present appeal; that is, that Stafford was entitled to a new trial and that it could not be held liable unless it were found negligent. Nevertheless, this Court entered a judgment which stated: “The judgment of the trial court in favor of the third-party defendant Stafford Enterprises and against the defendant American Cyanamid Company, and also the judgment denying the defendant American Cyanamid Company’s motion for judgment notwithstanding the verdict are reversed in accordance with the opinion of the Supreme Court.” American Cyanamid Co. v. Ring, 161 Ga. App. 317 (289 SE2d 823). By motion for rehearing, Stafford’s arguments were reiterated concerning the requirement that a new trial be granted it rather than a directed verdict be entered against it, and that a judgment could not be rendered against it unless it were found to be negligent by a jury, but the motion was denied and the decision remained unchanged.

When the remittitur from this Court reached the trial court, the trial judge entered a judgment which decreed that the plaintiff Ring, individually, have judgment against Cyanamid in the amount of $300,147.10 and that the plaintiff Ring, as administratrix, have judgment against Cyanamid in the amount of $1,675.37 with interest at the legal rate; that the defendant and third-party plaintiff Cyanamid have judgment over and against third-party defendant Stafford for the aforesaid principal and interest under the indemnity agreement entered into between the two corporations. The order left the issue of attorney’s fees, costs, and expenses to be determined at a later time.

On the judgment of the trial court, entered after remand from the Supreme Court to the Court of Appeals, and after entry of the [648]*648remittitur from the Court of Appeals, Stafford appeals and assigns the judgment as error. Held:

As has been pointed out in the statement of facts, the appellant’s major contention is the same as that which was urged before this Court on remand from the Supreme Court. In essence, the argument is that, since neither the Supreme Court nor the Court of Appeals reversed with direction, the effect of their judgment was to grant a directed verdict only as to the issue that the contract between the two corporations was in effect as of the date of Ring’s death. Therefore, appellant contends that a directed verdict for Cyanamid was not authorized but instead a new trial should have been granted so that further issues could have been determined, the principal one which the appellant urges being that the evidence did not show any negligence on its part, therefore, Cyanamid could not recover under these circumstances.

In contending that a finding of negligence on its part is mandatory, Stafford relies on Binswanger Glass Co. v. Beers Constr. Co., 141 Ga. App. 715, 719 (234 SE2d 363) which involved a clause providing indemnity for “any and all claims ... to any person . . . resulting from negligence or other causes.” In passing upon the issue of whether the sub-contractor was contractually liable to indemnify the general contractor, this court held that if only contributory negligence on the part of the sub-contractor’s employee was shown and no showing was made that the sub-contractor was negligent, then the contract could not be construed to indemnify the general contractor for its own acts of negligence.

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Bluebook (online)
297 S.E.2d 307, 164 Ga. App. 646, 1982 Ga. App. LEXIS 2902, Counsel Stack Legal Research, https://law.counselstack.com/opinion/stafford-enterprises-inc-v-american-cyanamid-co-gactapp-1982.