Zadak v. Cannon

307 N.E.2d 605, 17 Ill. App. 3d 74, 1974 Ill. App. LEXIS 2946
CourtAppellate Court of Illinois
DecidedJanuary 11, 1974
DocketNo. 56363
StatusPublished
Cited by3 cases

This text of 307 N.E.2d 605 (Zadak v. Cannon) is published on Counsel Stack Legal Research, covering Appellate Court of Illinois primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Zadak v. Cannon, 307 N.E.2d 605, 17 Ill. App. 3d 74, 1974 Ill. App. LEXIS 2946 (Ill. Ct. App. 1974).

Opinion

Mr. JUSTICE ENGLISH

delivered the opinion of the court:

Charles Zadak, an employee of Cyclone Blow Pipe Company, sued Sunbeam Corporation and its employee Dale Cannon for injuries which Zadak suffered while working at the Sunbeam plant installing equipment which Sunbeam had purchased from Cyclone under a written purchase order. Zadak alleged that he was injured either negligently or wilfully by Cannon. Sunbeam filed a third-party complaint against Cyclone on the basis of an indemnification provision which was included among the terms and conditions of the purchase order which Cyclone accepted and pursuant to which it was installing the equipment ordered.

The purchase order provides that Sunbeam gives the seller the order

“* * * on the express terms and conditions stated herein and on the back of this order, all of which conditions are in integral part hereof and shall be considered as being incorporated herein at this place, in the same manner as though so written or printed here.”

The order also states that:

“Shipment against this order shall be deemed acceptance by Seller of each of such terms and conditions * * *.”

Two of the conditions are relevant:

“(k) * * * seller [Cyclone] also will indemnify and hold harmless the buyer [Sunbeam] of and from any and all suits, claims, liens, damages, taxes or demands whatsoever arising out of any such work covered by, necessitated or performed under this order. (Emphasis added.)
(1) In consideration of the acceptance of this order, seller agrees to defend, protect and save harmless the buyer, or any of its customers, against all suits at law or in equity * * * or for any other actual or alleged injury to property or person, and to defend or assist in the defense of any suit or action which may be brought against the buyer * * * by reason of * * * any other claim of any kind resulting from the purchase, sale or use of the goods, commodities, products and items covered by this order.”

Cyclone has admitted that the purchase order and conditions were in effect, but has denied their applicability to the facts of this case. In the trial court, Sunbeam moved for judgment on the pleadings; the trial court, in effect, allowed its motion by granting summary judgment in its favor.

Cyclone contends that Westinghouse Electric Elevator Co. v. La Salle Monroe Bldg. Corp., 395 Ill. 429, 70 N.E.2d 604, is controlling in this case. In Westinghouse, tire court said that although it is a general rule that unless a contract is ambiguous, its meaning must be determined from the words used, it is also true that

“* * * an indemnity contract will not be construed as indemnifying one against his own negligence, unless such a construction is required by clear and explicit language of the contract, * * *.”395 Ill. at 433.

Cyclone also cites later cases which it suggests adhere to the Westinghouse doctrine, including Li Petri v. Turner Construction Co., 36 Ill.2d 597, 224 N.E.2d 841; Halperin v. Darling & Co., 80 Ill.App.2d 353, 225 N.E.2d 92; Ford Motor Co. v. Commissary, Inc., 286 F.Supp. 229 (N.D. Ill.); and Chicago & Northwestern Ry. Co. v. Chicago Packaged Fuel Co., 195 F.2d 467 ( 7th Cir.), cert, denied 344 U.S. 832, 97 L.Ed. 648, 73 S.Ct. 39.

However, we believe that Westinghouse and the later cases do not support Cyclone’s position. The language of the contract in Westinghouse provided indemnification to the owner by the contractor only for damages

“* * * arising out of any acts or omissions by [the contractor], its agents, servants or employees in the course of any work done in connection with any matters set out in the contract.” 395 Ill. at 433.

The contract did not refer to any negligence of the owner himself.

In Li Petri, broad language providing for indemnification of the contractor by the subcontractor was qualified by language in the same contract which said the subcontractor would indemnify the general contractor for losses occurring in connection with the use by the subcontractor of certain equipment rented to the general contractor. The court found this clause did not apply to injury caused by negligent maintenance of this equipment. In Halperin, the court noted that contracts of indemnity against one’s own negligence are generally regarded as valid and enforceable, but found that the language concerning indemnification meant that the lessee would indemnify the lessor for any loss arising out of “the operation” of the equipment leased; and that no intention was manifested in the contract to enable the lessor to hold the lessee harmless from damages arising out of the lessee’s negligence in “the maintenance” of the leased equipment. The court noted that the contract provided that the lessee would retain all responsibility for the active maintenance of the leased equipment. In Ford, the court’s analysis of the language of the indemnification clause was similar to that in Halperin; also, the contract included language concerning equipment maintenance which qualified that of the broad indemnification clause. In Chicago Packaged Fuel, the licensee agreed to indemnify the licensor for all loss arising from the use of the licensed equipment. The court found that the proximate cause of the accident was not the equipment involved in the indemnification provision.

Cyclone argued further that a recent Illinois statute (Ill. Rev. Stat. 1971, ch. 29, par. 61) has declared that agreements in construction contracts indemnifying one against his own negligence are against public policy and therefore void. Cyclone says that this statute should be given consideration although it has prospective application only. We believe that in light of the recent authority cited below, this point is without merit.

It is true that in Tartar v. Maxon Construction Co., 3 Ill.App.3d 352, 277 N.E.2d 715, the appellate court did suggest that the rule of strict construction whereby a tortfeasor seeks to excuse or transfer liability for his wrongful act is a reflection of the public policy now embodied in the new statute which prospectively outlaws such indemnity provisions. The Supreme Court affirmed the appellate court’s decision in Tatar v. Maxon Construction Co., 54 Ill.2d 64, 294 N.E.2d 272. However, the Supreme Court did not mention the new statute in its opinion. Instead, it noted that the broad language of the indemnification agreement involved in Tatar was accompanied by a provision concerning insurance which referred to damage “which may arise out of Subcontractor’s work.” The court ruled, in effect, that the narrower language of the clause concerning insurance qualified the broad language of the indemnity provision.

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Related

Smart v. International Harvester Co.
337 N.E.2d 68 (Appellate Court of Illinois, 1975)
American Pecco Corp. v. Concrete Building System Co.
392 F. Supp. 789 (N.D. Illinois, 1975)
Zadak v. Cannon
319 N.E.2d 469 (Illinois Supreme Court, 1974)

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307 N.E.2d 605, 17 Ill. App. 3d 74, 1974 Ill. App. LEXIS 2946, Counsel Stack Legal Research, https://law.counselstack.com/opinion/zadak-v-cannon-illappct-1974.