Youell v. Maddox

692 F. Supp. 343, 1988 U.S. Dist. LEXIS 8020, 1988 WL 77919
CourtDistrict Court, D. Delaware
DecidedJuly 11, 1988
DocketCiv. A. 86-300-JLL
StatusPublished
Cited by6 cases

This text of 692 F. Supp. 343 (Youell v. Maddox) is published on Counsel Stack Legal Research, covering District Court, D. Delaware primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Youell v. Maddox, 692 F. Supp. 343, 1988 U.S. Dist. LEXIS 8020, 1988 WL 77919 (D. Del. 1988).

Opinion

MEMORANDUM OPINION

LATCHUM, Senior District Judge.

I. INTRODUCTION

The present matter stems from a suit brought by John R. Youell (“plaintiff”), on behalf of himself and those Underwriters at Lloyd’s, London, subscribing Railroad Protective Liability Policy No. 3649-1982, against James Maddox (“Maddox”), a citizen of Delaware, and J & M Construction and Demolition (“J & M Construction”). 1 The suit arises from a settlement which plaintiff’s insured, and the original nominal plaintiff, Consolidated Rail Corporation (“Conrail”) entered into with its employee, James F. Tuerk (“Tuerk”), who was injured in an area where J & M Construction was *345 removing track and rail pursuant to a contract with Conrail.

Presently before the Court is defendants’ motion for summary judgment (Docket Item [“D.I.”] 54) as to Counts I and II of plaintiff’s amended complaint (D.I. 51 iff 11-18), as well as plaintiff’s Renewed Motion for Summary Adjudication as to Count III of said complaint (D.I. 57). 2 Count I alleges that plaintiff is entitled to indemnification at common law for the $500,000 which plaintiff paid to Tuerk in settlement of his claim against Conrail. (D.I. 51 1114.) In the alternative, Count I seeks contribution from defendants for a portion of that amount. (Id.) Count II asserts that J & M Construction breached its contract with Conrail by failing to perform its work in a safe, orderly, efficient and workmanlike manner. (Id. II17.) Plaintiff alleges that this breach caused Tuerk to suffer injuries and plaintiff to incur damages in the amount of $500,000. (Id. II18.) Count III alleges that J & M Construction agreed in its contract with Conrail to indemnify Conrail for all losses occurring in connection with the performance of the contract and that J & M Construction did not defend and has not indemnified Conrail for the Tuerk suit and settlement. (Id. If 1119-23.)

In support of their motion for summary judgment, defendants argue that, as a matter of law, plaintiff may not assert the claims set out in Count I. Defendants also maintain that plaintiff’s claim in Count II for breach of contract is barred by the applicable statute of limitations. For the reasons set forth below, the Court will grant defendants’ motion for summary judgment as to the claims for common law indemnity and breach of contract. However, defendants’ motion as to the claim for contribution in Count I will be denied.

■ Finally, the Court will deny plaintiff’s Renewed Motion for Summary Adjudication as to Count III.

II. BACKGROUND

The parties do not dispute the material facts of this case. On June 22,’ 1982, Conrail and J & M Construction entered into a contract for the removal of railroad rails and ties from Conrail’s Benning Yard facility, located in Washington, D.C. (See D.I. 55 Exhibit C.) Paragraph Two of the contract provided that “[a]ll work to be done by [J & M Construction] ... shall be done in a safe, orderly, efficient and workmanlike manner____” (Id. U 2.) The contract also provided that “Conrail’s property shall be left in a clean and safe condition and the condition of said premises shall be subject to the approval of Conrail at all times during the course of the [work].” (Id. 117.)

The contract further required that Maddox, at his own expense, purchase the following forms of insurance:

(a) Workmen’s Compensation, Employer’s Liability Insurance, and Occupational Disease Insurance;
(b) Contractor’s Public Liability Insurance
Contractor shall furnish evidence that, with respect to the operations it performs, it carries regular Contractor’s Public Liability Insurance providing for a limit of not less than $500,000 single limit, bodily injury and/or property damage combined, for damages arising out of bodily injuries to or death of all persons in any one occurrence and for damage to or destruction of property, including the loss of use thereof, in any one occurrence.
(c) Contractor’s Protective Public Liability Insurance
Contractor shall furnish evidence that, with respect to the operations performed by subcontractors, it carries in its own behalf regular Contractor’s Protective Public Liability Insurance providing for a limit of not less than $500,000, single limit, bodily injury to or death of all persons in any one occurrence and for damage to or destruction of property, *346 including the loss of use thereof, in any one occurrence.
(d) Railroad Protective Public Liability Insurance
In addition to the above, Contractor shall furnish evidence that, with respect to the operations it or any of its subcontractors perform, it has provided Railroad Protective Public Liability Insurance (AARAASHTO form) in the name of Consolidated Rail Corporation providing for a limit of not less than $500,000, single limit, bodily injury and/or property damage combined, for damages arising out of bodily injuries to or death of all persons in any one occurrence and for damage to or destruction of property, including the loss of use thereof, in any one occurrence. Such insurance shall be furnished with an aggregate of not less than $1,000,000 for all damages as a result of more than one occurrence.

{Id. 1118) (emphasis in original).

Paragraph Eighteen also stated that “[t]he furnishing of the aforesaid insurance shall not be deemed a limitation on the liability of [J & M Construction] ... but shall be deemed additional security for Conrail.” {Id. at 9.)

Maddox purchased the Railroad Protective Liability Insurance through a Certificate of Insurance with Lloyd’s, London, and obtained the Contractor’s Public Liability Insurance from Selected Risks Insurance Company. (Defendants’ Answer to Plaintiff’s Second Set of Interrogatories, D.I. 19 If 1.)

Tuerk, a Conrail engineer, was injured in the pre-dawn hours on July 3, 1982 when, during the course of his employment, he fell over track material in the Benning Yard in an area in which J & M Construction was working. (D.I 51117; D.I. 52 117.) Tuerk sued Conrail pursuant to the Federal Employers’ Liability Act, 45 U.S.C. § 51 et seq., to recover damages for his injuries. (D.I. 51 U 9; D.I. 52 II9.) Conrail made a demand upon Maddox to assume the defense of the Tuerk suit and to indemnify it on the claim by Tuerk. Maddox took no action on this demand. 3

On November 30, 1983, plaintiff settled Tuerk’s claim by paying $500,000 to Tuerk on behalf of its insured, Conrail. (D.I. 51 U 10; D.I 52 If 10.) Lloyd’s paid the settlement in fulfillment of its obligations under the Railroad Protective Liability Insurance policy.

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Cite This Page — Counsel Stack

Bluebook (online)
692 F. Supp. 343, 1988 U.S. Dist. LEXIS 8020, 1988 WL 77919, Counsel Stack Legal Research, https://law.counselstack.com/opinion/youell-v-maddox-ded-1988.