Verson Allsteel Press Co. v. Carrier Corp. & Carrier Air Conditioning

718 S.W.2d 300
CourtCourt of Appeals of Texas
DecidedApril 30, 1986
Docket12-84-0202-CV
StatusPublished
Cited by14 cases

This text of 718 S.W.2d 300 (Verson Allsteel Press Co. v. Carrier Corp. & Carrier Air Conditioning) 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
Verson Allsteel Press Co. v. Carrier Corp. & Carrier Air Conditioning, 718 S.W.2d 300 (Tex. Ct. App. 1986).

Opinion

ON REHEARING

PER CURIAM.

The motion for rehearing is overruled.

The opinion of the court dated October 31, 1985, is withdrawn and the following substituted therefor.

Verson Allsteel Press Company (“Ver-son”) appeals from summary judgment rendered in favor of Carrier Corporation and Carrier Air Conditioning Company (“Carrier”).

On May 29, 1974, Steven Paul Gandy, an employee of Carrier, was injured on the job while operating a press brake manufactured by Verson. Gandy received worker’s compensation benefits for his injury. He filed suit against Verson for failure to provide adequate safety equipment; judgment was entered against Verson in that cause for $561,200.00, plus attorney’s fees. Ver-son thereafter filed this action against Carrier seeking indemnification for the judgment against it.

Verson bases its claim for indemnity on certain provisions printed on the acknowledgment copy of the production order covering the press brake, to-wit:

7. WARRANTY-WARRANTY LIMITATIONS INDEMNITY
(c) Customer assumes and shall bear all responsibility for providing adequate and sufficient safeguards, work handling tools and safety devices, to protect fully the operator and any other users of the goods at all times in accordance with the prevailing federal, state, and local codes and industry-accepted standards. Ver-son shall bear no liability whatsoever for the failure of customer to order, install, or use such safeguards, work handling tools or safety devices. Customer shall establish and use, and require all persons operating the equipment to use, all proper and safe operating procedures, including but not limited to procedures set forth in any manuals or instruction sheets relating to the equipment. Customer shall not remove or modify any devices, warning sign or manual furnished with, or installed upon or attached to the goods.
8. INDEMNITY
Customer hereby (1) waives, releases and discharges any and all claims of any and every kind (including but not limited to injury to or death of any person or damage to property) which it may have at any time against Verson, its agents or employees, by reason of or arising out of any claimed improper design, specifications or manufacture of the goods sold hereunder, or of any claimed inadequate or insufficient safeguards or safety devices; and (2) covenants to indemnify and hold harmless Verson, its agents and employees of, from and against any and all loss, damage, expense, claims, suits or liability which Verson or any of its employees may sustain or incur at any time for or by reason of any injury to or death of any person or persons or damage to any property, arising out of any claimed improper design or manufacture of the goods sold hereunder, or of any claimed inadequate or insufficient safeguards or safety devices.

Carrier moved for summary judgment, claiming Verson’s action for indemnification was barred by Article 8306, § 3, Revised Civil Statutes of Texas, 1925, (“Section 3”) which reads as follows:

If an action for damages on account of injury to or death of an employee of a subscriber is brought by such employee ... against a person other than the subscriber, as provided in Section 6a, Article *302 8307, Revised Civil Statutes of Texas, 1925, and if such action results in a judgment against such other person, or results in a settlement by such other person, the subscriber, his agent, servant or employee, shall have no liability to reimburse or hold such other person harmless on such judgment or settlement, nor shall the subscriber, his agent, servant or employee, have any tort or contract liability for damages to such other person because of such judgment or settlement, in the absence of a written agreement expressly assuming such liability, executed by the subscriber prior to such injury or death.

(Emphasis added.) Carrier asserted there was no express contract of indemnification in existence between itself and Verson of the type contemplated by Section 3. Carrier’s motion for summary judgment was granted by the trial court.

On appeal, Verson seeks to establish that a material question of fact exists as to whether the conditions of sale contained in the quoted order were part of the contract between Carrier and Verson for purchase of the press brake. Verson presupposes that those provisions, if found to be part of the contract, would satisfy the requirements of Section 3. Carrier, while not conceding that those terms were included in the agreement, proceeds on the premise that even if they were, they do not constitute an express assumption of liability under Section 3. We find that the terms in question clearly constitute an express written agreement by Carrier to indemnify Verson for a successful claim by a Carrier employee arising from inadequate safety devices.

Carrier interprets Section 3 and caselaw as establishing minimum requirements for indemnity clauses entered into by subscribers under the compensation statute. According to Carrier, the clause must specifically state: (1) that the indemnity covers injuries to employees of the indemnitor-employer, and (2) that the in-demnitor assumes liability even for the fault of the indemnitee. Carrier admits that there is a dearth of cases actually defining the phrase “expressly assuming.” We think Carrier’s position is excessively restrictive and unrealistic. The cases cited by Carrier deal with agreements in which a subscriber agrees to indemnify a third party for that party’s negligence. 1 While those cases indicate an increasingly rigid approach in interpreting agreements by a party to assume liability for the negligence of another, see Fireman’s Fund Insurance Co. v. Commercial Standard Insurance Co., 490 S.W.2d 818 (Tex.1972), Carrier has overstated the precedential value of those cases for its position in the matter now at hand. Texas courts have continued to follow the rule that the obligation to indemnify must be expressed in clear and unequivocal terms. Eastman Kodak Co. v. Exxon, 603 S.W.2d 208 (Tex.1980); Goodyear Tire & Rubber Co. v. Jefferson Construction Co., 565 S.W.2d 916 (Tex.1978); Fireman’s Fund Insurance Co., 490 S.W.2d at 822; Phillips Pipeline Co. v. Richardson,

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Bluebook (online)
718 S.W.2d 300, Counsel Stack Legal Research, https://law.counselstack.com/opinion/verson-allsteel-press-co-v-carrier-corp-carrier-air-conditioning-texapp-1986.