Windham v. LCI2 Inc.

CourtNew Mexico Court of Appeals
DecidedSeptember 28, 2011
Docket29,609
StatusUnpublished

This text of Windham v. LCI2 Inc. (Windham v. LCI2 Inc.) is published on Counsel Stack Legal Research, covering New Mexico Court of Appeals primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Windham v. LCI2 Inc., (N.M. Ct. App. 2011).

Opinion

1 This memorandum opinion was not selected for publication in the New Mexico Reports. Please see 2 Rule 12-405 NMRA for restrictions on the citation of unpublished memorandum opinions. Please 3 also note that this electronic memorandum opinion may contain computer-generated errors or other 4 deviations from the official paper version filed by the Court of Appeals and does not include the 5 filing date.

6 IN THE COURT OF APPEALS OF THE STATE OF NEW MEXICO

7 BOBBY WINDHAM and 8 VICKIE K. WINDHAM,

9 Plaintiffs,

10 v. NO. 29,609

11 L.C.I.2, INC., a New Mexico 12 corporation,

13 Defendant-Appellee,

14 and

15 NATIONWIDE MUTUAL 16 INSURANCE COMPANY,

17 Intervenor-Appellant.

18 APPEAL FROM THE DISTRICT COURT OF TAOS COUNTY 19 Michael E. Vigil, District Judge

20 Law Office of Paul S. Grand, P.A. 21 Paul S. Grand 22 Santa Fe, NM

23 for Appellee

24 Montgomery & Andrews, P.A. 25 Kevin M. Sexton 26 Shannon A. Parden 27 Albuquerque, NM 1 Beall & Beihler 2 Josh A. Harris 3 Albuquerque, NM

4 for Appellant

5 Will Ferguson & Associates 6 David M. Houliston 7 Albuquerque, NM

8 Sanders And Westbrook, PC 9 Maureen Sanders 10 Albuquerque, NM

11 for Plaintiffs

12 Calvert Menicucci, P.C. 13 Sean R. Calvert 14 Albuquerque, NM

15 for Amicus Curiae

16 MEMORANDUM OPINION

17 VIGIL, Judge.

18 The City of Taos hired L.C.I.2, Inc. (L.C.I.2), to construct a structure

19 surrounding a pre-existing recreation area, which included a swimming pool, and

20 L.C.I.2 in turn subcontracted with Plaintiff’s employer, Newt & Butch’s Sheet Metal,

21 Inc. (Newt & Butch) to install the roof on the structure. Under the subcontract, Newt

22 & Butch agreed to indemnify L.C.I.2 against and save it harmless from any and all

23 claims, suits or liability for injuries to persons “on account of any act or omission of

2 1 [Newt & Butch], or any of [its] officers, agents, employees or servants[.]” Pursuant

2 to this provision in the subcontract, L.C.I.2 was named as an “additional insured”

3 under a commercial general liability policy issued to Newt & Butch by Nationwide

4 Mutual Insurance Company (Nationwide). In pertinent part, the policy provides that

5 L.C.I.2 “is an additional insured only with respect to liability arising out of [Newt &

6 Butch’s] ongoing operations performed for [L.C.I.2].”

7 While in the scope of his employment with Newt & Butch in installing the roof,

8 Plaintiff, Bobby Windham, fell through the cutout for a skylight, and landed in the

9 empty swimming pool. Plaintiff sued the general contractor, L.C.I.2, alleging that

10 L.C.I.2 was negligent in failing to provide coverings of the cutouts for the skylights

11 and in failing to implement, communicate, monitor, and enforce safety rules which

12 would have prevented the accident. On the same basis, Plaintiff’s wife sought

13 damages for loss of consortium. L.C.I.2 denied liability, asserted that the work

14 referred to in the complaint was being performed by the subcontractor, Newt & Butch,

15 and that Plaintiff’s injuries and damages were the result of Plaintiff’s negligence, or

16 the negligence of a third party, “thereby barring the relief requested or reducing it

17 some percentage extent depending upon the degree of fault apportioned to Plaintiff or

18 other third parties pursuant to the rules of pure comparative negligence adopted by the

19 State of New Mexico.”

3 1 L.C.I.2 demanded a defense and indemnification from Nationwide as an

2 additional insured under the policy. Nationwide accepted the defense under a

3 reservation of rights. In pertinent part, Nationwide stated that under the policy,

4 L.C.I.2 is an additional insured for damages arising out of Newt & Butch’s ongoing

5 operations performed for L.C.I.2. Accordingly, Nationwide said, it was reserving its

6 rights, “because at this time, it is uncertain whether this incident arose out of

7 [Plaintiff’s] work for Newt & Butch’s or whether [Plaintiff’s] injuries arose out of

8 L.C.I.2’s individual negligence. Nationwide reserves its right to not defend or

9 indemnify L.C.I.2 for any damages arising out of its individual negligence.”

10 Addressing Newt & Butch’s contractual agreement to indemnify L.C.I.2, Nationwide

11 reserved its rights “to not defend or indemnify L.C.I.2 for this matter in the event it

12 is determined that [Plaintiff’s] injuries arose out of the individual negligence of

13 L.C.I.2” Nationwide then intervened in Plaintiffs’ suit against L.C.I.2, and filed a

14 complaint seeking a declaratory judgment that it had no duty to defend or indemnify

15 L.C.I.2 from any claims asserted by Plaintiffs against L.C.I.2. Nationwide asserted

16 that Plaintiffs made no claims against Newt & Butch, and under the express terms and

17 conditions of the insurance policy and subcontract, it had no duty to defend or

18 indemnify L.C.I.2. In addition, Nationwide asserted that pursuant to NMSA 1978,

19 Section 56-7-1 (2003), any claim by L.C.I.2 for indemnity under the subcontract or

4 1 insurance policy is void, unenforceable, and against public policy. L.C.I.2 denied that

2 Nationwide was entitled to the declaratory judgment.

3 Nationwide and L.C.I.2 filed motions for summary judgment in support of their

4 respective positions. Nationwide argued that Plaintiffs only alleged that L.C.I.2 was

5 negligent, and that an agreement by Newt & Butch in the subcontract or by its

6 insurance to provide L.C.I.2 with a defense and indemnification for L.C.I.2’s own

7 negligence violates Section 56-7-1. L.C.I.2 argued that as an additional insured, it is

8 entitled to a defense and indemnification under terms of the policy. Moreover, L.C.I.2

9 argued, Section 56-7-1 is not a bar because L.C.I.2 does not seek indemnification for

10 its own negligence, but a defense to Plaintiffs’ suit to the extent Plaintiffs’ claim

11 against L.C.I.2 “arises out of” Newt & Butch’s acts or omissions. Following a

12 hearing, the district court granted L.C.I.2’s motion for summary judgment and denied

13 Nationwide’s motion for summary judgment. Nationwide appeals. We affirm.

14 STANDARD OF REVIEW

15 The material facts are undisputed. Thus, our review of the order granting

16 L.C.I.2 summary judgment is de novo. City of Albuquerque v. BPLW Architects &

17 Eng’rs, Inc., 2009-NMCA-081, ¶ 7, 146 N.M. 717, 213 P.3d 1146 (“[I]f no material

18 issues of fact are in dispute and an appeal presents only a question of law, we apply

5 1 de novo review and are not required to view the appeal in the light most favorable to

2 the party opposing summary judgment.”).

3 DISCUSSION

4 Preliminary Matters

5 Before addressing the merits, we note three preliminary matters. First, in a

6 separate order, the district court granted summary judgment to L.C.I.2 on Plaintiffs’

7 claims of negligence against L.C.I.2. In Windham v. L.C.I.2, Inc., No. 29,212 (N.M.

8 Ct. App. July 8, 2011), we filed a memorandum opinion reversing the summary

9 judgment and remanded the case to the district court. Thus, any arguments premised

10 on that summary judgment are no longer viable.

11 Second, we note that Section 56-7-1 was amended in 2005. 2005 N.M. Laws,

12 ch. 148, § 1. However, the subcontract between L.C.I.2 and Newt & Butch was

13 signed while the 2003 version of the statute was in effect. Thus, the parties do not

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