Milliken & Company v. Georgia Power Company
Milliken & Company v. Georgia Power Company
Opinion
*60 Milliken & Company brought the above appeals from the trial court's grant of summary judgment in favor of Georgia Power Company on six identical cross-claims filed by Milliken in related lawsuits arising out of an airplane crash. We consolidate the appeals for consideration in this opinion, and for the following reasons affirm the trial court's grant of summary judgment in all six cases.
These appeals arise from lawsuits brought on behalf of passengers and pilots killed or injured when the airplane they occupied crashed near the Thomson-McDuffie County Airport. The suits asserted claims for wrongful death and personal injury damages arising from the crash and alleged that multiple defendants negligently caused the crash, including Milliken and Georgia Power. The plaintiffs alleged that the plane aborted an attempt to land on the airport runway, and that, while the plane gained altitude from the runway to go around for another landing attempt, it struck a Georgia Power transmission pole located a distance from the end of the runway on property owned by the Milliken manufacturing plant adjacent to the airport. The plaintiffs' negligence claims against Milliken and Georgia Power are based on allegations that the transmission pole was negligently placed and constructed too close to the end of the runway, too high, and encroached on the airport easement, and that this was a contributing cause of the plane hitting the pole and crashing. The Georgia Power transmission pole was located on Milliken property pursuant to an easement over the property given by Milliken to Georgia Power in August 1989 that permitted Georgia Power to construct the pole and related structures to provide electricity to the Milliken plant. The written easement contained a provision that stated:
[Georgia Power], its successors or assigns shall hold [Milliken], its successors or assigns harmless from any damages to property or persons (including death), or both, which result from [Georgia Power's] construction, operation or maintenance of its facilities on said easement areas herein granted.
Relying on this provision, in each suit Milliken filed an identical cross-claim pursuant to OCGA § 9-11-13 (g) against co-defendant Georgia Power asserting that Georgia Power is contractually liable to Milliken "for all sums that Plaintiffs may recover from Milliken." Georgia Power moved for summary judgment on the cross-claims asserting various grounds including: (1) that the hold harmless language in the easement provision at issue cannot be construed as an agreement by Georgia Power to indemnify Milliken for third-party claims by the plaintiffs against Milliken; and (2) that, even if the easement provision could be construed to require Georgia Power to indemnify Milliken for damages the plaintiffs may recover against Milliken, this construction would render the easement void as against public policy. The trial court granted summary judgment in favor of Georgia Power on all of the cross-claims, and Milliken appealed.
A party bringing a cross-claim is asserting "that the party against whom it is asserted is or may be liable to the cross-claimant for all or part of a claim asserted in the action against the cross-claimant." OCGA § 9-11-13 (g).
Fowler v. Vineyard
,
At the time the 1989 easement agreement was entered into, OCGA § 13-8-2 (b) provided:
A covenant, promise, agreement, or undertaking in or in connection with or collateral to a contract or agreement relative to the construction, alteration, repair, or maintenance of a building structure, appurtenances, and appliances, including moving, demolition, and excavating connected therewith, purporting to indemnify or hold harmless the promisee against liability for damages arising out of
bodily injury to persons or damage to property caused by or resulting from the sole negligence of the promisee, his agents or employees, or indemnitee is against public policy and is void and unenforceable, provided that this subsection shall not affect the validity of any insurance contract, workers' compensation, or agreement issued by an admitted insurer. 1
To fall within OCGA § 13-8-2 (b), a provision to indemnify must satisfy two threshold conditions. The provision must "(1) relate in some way to a contract for 'construction, alteration, repair, or maintenance' of certain property and (2) promise to indemnify a party for damages arising from that own party's sole negligence."
Kennedy Dev. Co. v. Camp
,
"bearing little or no relationship to any ostensible building construction."
Judgments affirmed.
Dillard, C. J., and Ray, J., concur.
Contracts are construed under the law in effect at the time the contract was made.
Oravec v. Phillips
,
Reference
- Full Case Name
- MILLIKEN & COMPANY v. GEORGIA POWER COMPANY (Six Cases).
- Cited By
- 4 cases
- Status
- Published