Callahan v. A. J. Welch Equipment Corp.
Callahan v. A. J. Welch Equipment Corp.
Opinion of the Court
The principal issues raised by this appeal are (1) whether the indemnity clause of a construction subcontract requires the subcontractor to indemnify the general contractor for its tort liability to the plaintiff whose injury a jury attributed to the concurrent conduct of the subcontractor, another subcontractor and the general contractor and (2) whether an indemnitor may obtain contribution from its indemnitee under the provisions of G. L. c. 23IB, § 1(e).*
The plaintiff broke his leg while working for the Sutton Corporation (Sutton) in the construction of the Cambridge-side Galleria project. Sutton was the earth-support systems subcontractor at that job site. The plaintiff received workers’ compensation benefits from Sutton’s insurance carrier and brought an action in the Superior Court for negligence against A. J. Welch Equipment Corporation (Welch), the excavation subcontractor, and Beaver Builders, Inc. (Beaver), the general contractor, of the Galleria project. In that action, Beaver filed claims against Sutton and Welch for indemnification based upon identical indemnification clauses in their subcontracts.
On appeal, Sutton claims that the judge erred in ruling that Beaver was entitled to indemnification from Sutton based on the provisions of G. L. c. 149, § 29C,
We address each of those claims of error.
1. Indemnification clause. Sutton argues that a subcontractor cannot be held liable under an indemnity clause in a construction contract under the provisions of G. L. c. 149, § 29C, unless the subcontractor is found negligent. It claims that the jury’s finding that it was a “cause” of the accident is not the equivalent of a finding of negligence and, thus, the indemnity clause of its contract does not apply.
The current version of G. L. c. 149, § 29C, declares void indemnity provisions in construction contracts when the subcontractor is obligated to indemnify any party for an injury, which is “not caused by the subcontractor or its employees, agents or subcontractors . . . .” See Jones v. Vappi & Co., 28 Mass. App. Ct. 77, 81-82 (1989). See also Harnois v. Quan-napowitt Dev., Inc., 35 Mass. App. Ct. 286, 288-289 (1993). In the Harnois case, which was decided after the trial court’s decision, we advocated focusing on the language of the indemnity clause to determine its validity under § 29C rather than on the facts of the particular accident and assessment of fault of the parties. In that case, we held that the indemnity clause was void because it contained a provision requiring the subcontractor to indemnify the general contractor for an injury that may not have been caused by the subcontractor or its employees, agents, or subcontractors. Id. at 288-289. Unlike the indemnity clause in the Harnois case, Sutton’s obligation to indemnify is limited to an injury resulting from the negligence or act or omission of Sutton or its agents “to the fullest extent permitted by law.” Because of that limitation, we do not consider the indemnity clause void under § 29C.
The question thus remains whether “cause” as used in § 29C requires a finding of negligence. There is no mention of negligence in § 29C even though the Legislature, in the
Sutton next contends that the judge incorrectly determined that it was obligated to indemnify Beaver because the language of the indemnity clause did not clearly specify that Sutton would indemnify Beaver even if Beaver were found negligent. The mere fact that an indemnity clause does not expressly provide for indemnity even where the indemnitee is negligent will not preclude the right to indemnity if the intent sufficiently appears in the language and circumstances attending its execution. Shea v. Bay State Gas Co., 383 Mass. 218, 222-223 (1981). Kelly v. Dimeo, Inc., 31 Mass. App. Ct. 626, 629 (1991). Here, the indemnity clause speaks of indemnification “from and against any and all claims for bodily injury and death and for property damage or any other loss or damage suffered or incurred by the . . . Contractor” to the fullest extent permitted by law. Based on the scope of that language and the situation of the parties, we conclude that the judge did not err in concluding that Sut
2. Contribution. Sutton’s liability to Beaver under its indemnity clause arises out of Welch’s recovery of contribution from Beaver for one-half of Welch’s settlement of plaintiff’s claim. Sutton claims that since Welch is obligated to indemnify Beaver for the loss in question, Welch cannot obtain contribution from Beaver under the provisions of G. L. c. 231B, § 1(e). We agree.
Contribution and indemnity are mutually exclusive remedies. Elias v. Unisys Corp., 410 Mass. 479, 482 (1991). General Laws c. 23IB, § 1(e), simply provides that there is no contribution in cases where a right of indemnity exists. See Wolfe v. Ford Motor Co., 386 Mass. 95, 100-101 (1982); Jones v. Vappi & Co., supra at 78, 80-81. This interpretation is consonant with the views expressed by the drafters of the Uniform Contribution Among Tortfeasors Act, 12 U.L.A. 66 (Master ed. 1975), and the Restatement (Second) of Torts § 886A(4) (1979).
3. Welch’s and Sutton’s liability for indemnification. Sutton argues that the judge erred in failing to find Welch liable for indemnity to Beaver where Welch’s subcontract contained an indemnity clause identical to the one contained in Sutton’s contract. The judge’s decision was based on his conclusion that it would have been inequitable to do so because it would have resulted in a windfall for Beaver. We do not agree. There is nothing to distinguish Welch’s liability for indemnity to Beaver in the factual circumstances of this case from Sutton’s liability to Beaver. Nevertheless, in light of our holding that Welch could not obtain contribution from Beaver, there has been no loss suffered by Beaver and consequently, no entitlement to indemnification from either Welch or Sutton.
The judgment is vacated. A new judgment is to enter: (1) for Beaver on Welch’s claim for contribution; (2) for Welch on Beaver’s cross claim for contribution; (3) for Sutton on Beaver’s claim for indemnification; (4) for Welch on Beaver’s cross claim for indemnification; and (5) for Welch on Sutton’s cross claim for contribution.
So ordered.
General Laws c. 23IB, § 1(e), as inserted by St. 1962, c. 730, § 1, provides: “This chapter shall not impair any right of indemnity under existing law. Where one tortfeasor is entitled to indemnity from another, the right of the indemnity obligee shall be for indemnity and not contribution, and the indemnity obligor shall not be entitled to contribution from the obligee for any portion of his indemnity obligation.”
The indemnity clause read as follows: “To the fullest extent permitted by law, Subcontractor shall defend and save the Owner and Contractor harmless and indemnified from and against any and all claims for bodily injury and death and for property damage or any other loss or damage suffered or incurred by the Owner, any separate contractors employed by the Owner, or by Contractor or any Subcontractor employed by the Owner or Contractor, resulting from the negligence or any act or omission of Subcontractor or his agents, or arising out of or in any way connected with the performance, attempted performance, or failure to perform the Work by Subcontractor.”
Welch’s claim for contribution against Sutton was dismissed before trial because Sutton, as the plaintiff’s employer, was immune from tort liability based on its payment of workers’ compensation benefits to the plaintiff. See G. L. c. 152, § 23. Sutton had paid to the plaintiff $56,405.74 through its workers’ compensation carrier and its insurance carrier had waived its lien on the settlement of $115,000 received by the plaintiff from Welch.
General Laws c. 149, § 29C, provides in pertinent part as follows:
“Any provision for or in connection with a contract for construction, reconstruction, installation, alteration, remodeling, repair, demolition or maintenance work . .. which requires a subcontractor to indemnify any party for injury to persons or damage to property not caused by the subcontractor or its employees, agents or subcontractors, shall be void.”
Ordinarily, an indemnitee is entitled to recover reasonable attorney’s fees and costs incurred in resisting a claim within the scope of the indem
Reference
- Full Case Name
- Joseph Callahan v. A. J. Welch Equipment Corporation & another Sutton Corporation, third-party
- Cited By
- 36 cases
- Status
- Published