ZRAJ OLEAN, LLC v. ERIE INSURANCE COMPANY OF NEW YORK

134 A.D.3d 1557, 22 N.Y.S.3d 779
CourtAppellate Division of the Supreme Court of the State of New York
DecidedDecember 31, 2015
DocketCA 15-00145
StatusPublished
Cited by7 cases

This text of 134 A.D.3d 1557 (ZRAJ OLEAN, LLC v. ERIE INSURANCE COMPANY OF NEW YORK) is published on Counsel Stack Legal Research, covering Appellate Division of the Supreme Court of the State of New York primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
ZRAJ OLEAN, LLC v. ERIE INSURANCE COMPANY OF NEW YORK, 134 A.D.3d 1557, 22 N.Y.S.3d 779 (N.Y. Ct. App. 2015).

Opinion

Appeal from a judgment (denominated order) of the Supreme Court, Cattaraugus County (Michael L. Nenno, A.J.), entered August 27, 2014. The judgment, among other things, granted defendants’ cross motions for summary judgment.

*1558 It is hereby ordered that the judgment so appealed from is unanimously modified on the law by denying the cross motion of defendants Raymond Wangelin, doing business as Adams Septic & Southern Summit, and Nancy J. Wangelin, as Administratrix of the Estate of Raymond L. Wangelin, deceased, and reinstating the contractual indemnification and failure to procure insurance causes of action in the action under index No. 76791; granting that part of plaintiffs’ cross motion for summary judgment with respect to the cause of action for contractual indemnification in that action; denying the cross motion of defendant Erie Insurance Company of New York in the action under index No. 80570; and granting that part of plaintiffs’ cross motion for declaratory relief on the issue of the duty to defend and entering judgment in favor of plaintiff Zamias Services, Inc. in the action under index No. 80570 as follows:

It is adjudged and declared that defendant Erie Insurance Company of New York is obligated to defend plaintiff Zamias Services, Inc. in the underlying action from the date that such plaintiff was served with the amended complaint in the underlying action, and as modified the judgment is affirmed without costs.

Memorandum: Following a slip and fall on ice in a roadway at the Olean Center Mall, Brenda Johnson and Gary Johnson commenced an action (hereafter, underlying action) against the mall owner, plaintiff ZRAJ Olean, LLC (ZRAJ), and the mall’s property manager, plaintiff Zamias Services, Inc. (Zamias), seeking damages for injuries sustained by Brenda Johnson. Pursuant to a written service agreement, Southern Summit Development by its owner, Raymond Wangelin, had agreed to perform snow removal, sanding and salting services on behalf of plaintiffs at the shopping mall during the period of time inclusive of Brenda Johnson’s slip and fall. Raymond Wangelin, doing business as Adams Septic & Southern Summit (hereafter, Southern Summit), died during the pendency of the underlying action. Plaintiffs thereafter commenced a third-party action against defendants Southern Summit and Nancy J. Wangelin, as Administratrix of the Estate of Raymond L. Wangelin (hereafter, decedent’s estate), asserting causes of action for contractual indemnification, common-law indemnification, contribution and failure to procure insurance for ZRAJ as an additional insured. Southern Summit moved for summary judgment dismissing the second amended third-party complaint against it, and Supreme Court granted the motion in part and dismissed the causes of action for common-law indemnification *1559 and contribution on the ground that Southern Summit owed no duty of care to the Johnsons, as strangers to the service agreement, under any of the Espinal exceptions (see Espinal v Melville Snow Contrs., 98 NY2d 136, 140 [2002]).

Zamias subsequently commenced a declaratory judgment action against defendant Erie Insurance Company of New York (Erie) and decedent’s estate seeking a declaration that Zamias was entitled to a defense and indemnification with respect to the underlying action as an additional insured under the commercial general liability policy issued by Erie to Southern Summit. The underlying action was settled in January 2013. The court then consolidated the third-party action and the declaratory judgment action.

In response to two motions by Zamias for protective orders, Erie cross-moved for summary judgment in the declaratory judgment action seeking a declaration that it had no duty to defend or indemnify Zamias. Plaintiffs cross-moved for summary judgment in the declaratory judgment action seeking a declaration that Erie has a duty to defend Zamias with respect to the underlying action, and they sought summary judgment on the causes of action for contractual indemnification from Southern Summit and failure to procure insurance for ZRAJ as an additional insured. Southern Summit and decedent’s estate then cross-moved for summary judgment dismissing the causes of action in the third-party action for contractual indemnification and failure to procure insurance.

By the judgment on appeal, the court granted the cross motion of Southern Summit and decedent’s estate and dismissed plaintiffs’ causes of action in the third-party action for contractual indemnification and failure to procure insurance. The court also granted Erie’s cross motion in the declaratory judgment action and determined that Erie had no obligation to defend or indemnify Zamias in the underlying action. The court further determined that Zamias’ motions for protective orders and that part of plaintiffs’ cross motion for summary judgment on their cause of action for failure to procure insurance were “moot.” Plaintiffs appeal.

As a preliminary matter, we note that plaintiffs have abandoned any contentions with respect to the motions for protective orders and that part of their cross motion for summary judgment on their cause of action for failure to procure insurance inasmuch as they have not pursued any such issues in their brief (see Ciesinski v Town of Aurora, 202 AD2d 984, 984 [1994]).

We agree with plaintiffs that the court erred in denying that *1560 part of their cross motion for summary judgment seeking contractual indemnification from Southern Summit and decedent’s estate and in dismissing the cause of action for contractual indemnification. Initially, we note that the snow removal service agreement is not subject to General Obligations Law § 5-322.1 (1) because it is not a contract for “the construction, alteration, repair or maintenance of a building, structure, appurtenances and appliances” (id.; see Pieri v Forest City Enters., 238 AD2d 911, 912-913 [1997]). With respect to the language of the indemnification clause at issue, we note that the service agreement provides that Southern Summit would indemnify plaintiffs “from and against any and all occurrences, liability, claims, damages . . . , expenses, fees, fines, penalties, suits, proceedings, actions and causes of action of any and every kind whatsoever arising or growing out of or in any way connected with the work to be performed under [the] Agreement.” We conclude that the unambiguous intent of that language was to provide for indemnification even where plaintiffs have been negligent (see Gortych v Brenner, 83 AD3d 497, 498 [2011]; Cortes v Town of Brookhaven, 78 AD3d 642, 644 [2010]). We further conclude that the unambiguous intent of the clause was also to provide for indemnification even though Southern Summit was not negligent (see Brown v Two Exch. Plaza Partners, 76 NY2d 172, 178 [1990]; Brooklyn Union Gas Co. v Interboro Asphalt Surface Co., 303 AD2d 532, 535 [2003], lv denied 100 NY2d 506 [2003]). Thus, we conclude that the issue whether the court’s earlier dismissal of the contribution and common-law indemnification causes of action in the third-party action against Southern Summit and decedent’s estate, which we note was on Espinal

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Cite This Page — Counsel Stack

Bluebook (online)
134 A.D.3d 1557, 22 N.Y.S.3d 779, Counsel Stack Legal Research, https://law.counselstack.com/opinion/zraj-olean-llc-v-erie-insurance-company-of-new-york-nyappdiv-2015.