Stellato v. Flagler Park Estates, Inc.

11 Misc. 2d 413, 172 N.Y.S.2d 90, 1958 N.Y. Misc. LEXIS 3878
CourtNew York Supreme Court
DecidedFebruary 11, 1958
StatusPublished
Cited by9 cases

This text of 11 Misc. 2d 413 (Stellato v. Flagler Park Estates, Inc.) is published on Counsel Stack Legal Research, covering New York Supreme Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Stellato v. Flagler Park Estates, Inc., 11 Misc. 2d 413, 172 N.Y.S.2d 90, 1958 N.Y. Misc. LEXIS 3878 (N.Y. Super. Ct. 1958).

Opinion

M. Henry Martuscello, J.

This is the second trial of an action instituted by plaintiff Stellate to recover damages for personal injuries alleged to have been sustained by him as a result of the negligence of the defendants, Flagler Park Estates, Inc. (hereinafter referred to as Flagler) and Chesebro-Whitman Co., Inc. (hereinafter referred to as Chesebro); and wherein Flagler has impleaded Industrial Engineering Company, Inc. (hereinafter referred to as Industrial) as a third-party defendant, demanding judgment over against it.

Stellato, while in the employ of Industrial, was injured when he fell through an unguarded opening in a sidewalk bridge built by Chesebro and used as an appurtenance of a large apartment building that was being erected by Flagler, the owner and general contractor thereof. Industrial was a subcontractor engaged in constructing the concrete flooring in said building under a contract containing an indemnity clause in favor of Flagler, which the latter has invoked as the basis of its third-party complaint for recovery over. The clause reads as follows: ‘ ‘ Subcontractor * * * agrees to indemnify and save harmless the contractor and owner against loss or expense by reason of the liability imposed by law upon the contractor and/or the owner for damages because of bodily injuries * * * accidentally sustained by any person * * * arising out of or in consequence of the performance of this contract whether such injuries to persons * * * are due or claimed to be due to any negligence of the subcontractor, the contractor, the owner, his or their employees or agents, or any other person.”

The first trial resulted in a judgment for the plaintiff against Flagler and Chesebro in the sum of $80,000 and in a judgment over against Industrial on the third-party complaint. Upon appeal the Appellate Division (3 A D 2d 680) reversed the judgment against Flagler and Chesebro and ordered a new trial, thereby upsetting the judgment over.

When the case was called for retrial the parties entered into a stipulation which provided in substance that the plaintiff was to receive $60,000 in full settlement of his action, payable as [415]*415follows: $15,000 to be paid by defendant Chesebro — which sum has already been paid — and the balance of $45,000 to be paid by either Flagler or Industrial, depending upon a final determination here and in the appellate courts of the issue affecting said parties, namely, the enforcibility of the indemnity agreement above set forth.

Accordingly, the sole question presented on this trial is whether Industrial is obligated to indemnify Flagler upon the facts found with respect to the happening of Stellato’s accident. The basic facts relative thereto are conceded to be as follows: Stellato was piling on the sidewalk bridge lumber lowered thereto by eoemployees from upper floors where said material had been stripped from forms used by Industrial in the construction of said floors; and while so engaged he placed one foot on a pile of lumber six to eight inches high, and, as he did so, leaned forward and thereupon slipped or lost his balance and fell through the opening in said bridge, which was then, and had been for three or four days prior thereto, unprotected by any railing or other safeguard.

On the facts thus found I hold that the failure of Flagler to protect said opening, as required by provisions of the Labor Law, was the sole proximate cause of the accident and constituted active negligence, rendering it liable for the damages sustained by Stellato as a result thereof.

Turning now to the underlying feature of the question presented, I find that the indemnity clause clearly and unequivocally provides for indemnity to Flagler for its own negligence. Industrial, however, contends otherwise, and also claims that in any event its obligation under the agreement is limited to damages arising out of or in consequence of the performance of its contract, which language means caused by the doing of its work; and it argues that since the doing of its work was not the proximate cause of the accident, it follows that plaintiff’s claim is not one arising out of or in consequence of the performance of its contract, and consequently is not within the scope of the agreement for which indemnity was intended; and it cites as authority therefor Thompson-Starrett Co. v. Otis Elevator Co. (271 N. Y. 36).

The case relied upon is not in point nor authority for the position thus taken. There the defendant undertook to install elevators in a building and agreed to indemnify the general contractor, plaintiff’s predecessor, against all claims for damages growing out of the execution of its work. Two employees of the defendant while working in an elevator shaft were injured by a falling object owned by the general contractor; [416]*416and they sued the latter and recovered judgments upon showing that the accident was due to the negligence of said contractor in causing the object to fall and in failing to properly guard the elevator shaft. The plaintiff paid the judgments thus recovered and sought indemnity therefor, contending that the employees were injured while doing their work and therefore their claims were for damages growing out of the execution of the defendant’s work.

The Court of Appeals ruled against the plaintiff, holding that as the accident was caused solely by the negligence of the general contractor, for which indemnity was not expressly provided by the agreement, the claims resulting from said negligence were not for damages growing out of the execution of the defendant’s work, as said language, reasonably interpreted, meant damages caused by the doing of that work.

Industrial apparently views the foregoing interpretation as authorizing the meaning it assigns to the words involved herein. This point of view would be warranted if the subject agreement were assimilable to the agreement above construed. Said agreements, however, differ as to conditions requiring indemnity to be given and by reason thereof the position taken strains the purport of the determination relied upon.

The court did not say that the critical words considered had a fixed and invariable, meaning whenever used in an indemnity agreement, but that under the circumstances of the case the interpretation given was the meaning intended by the parties. Analysis of the rationale underlying the interpretation should help clear up the point raised herein.

Plaintiff was seeldng indemnity for damages caused solely by the negligence of its predecessor; and the question thereby raised was whether its contract expressly or impliedly made provision therefor. As the contract did not expressly so provide, it became necessary to ascertain if the general language thereof impliedly provided for indemnity for the negligence of the general contractor.

An indemnity agreement must be given a reasonable construction so as to carry out, rather than defeat, the evident purpose for which it was executed. Hence, the words in question did not warrant an interpretation that they signified, as was suggested by the plaintiff, damages resulting from the acts of the general contractor, unless indemnity for that purpose was intended by the parties. The primary purpose of the contract was not to purocure indemnity, but to provide for the installation of elevators and the indemnity agreement was an incident of the [417]

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Bluebook (online)
11 Misc. 2d 413, 172 N.Y.S.2d 90, 1958 N.Y. Misc. LEXIS 3878, Counsel Stack Legal Research, https://law.counselstack.com/opinion/stellato-v-flagler-park-estates-inc-nysupct-1958.