X

Thank you for sharing!

Your article was successfully shared with the contacts you provided.

Decided and Entered: August 11, 2005 97589 ________________________________ THOMAS J. GILBERT, Plaintiff, v ALBANY MEDICAL CENTER et al., Defendants and Third- Party Plaintiffs- Respondents; AC and S, INC., Third-Party Defendant- Appellant. ___________________________ Calendar Date: June 2, 2005 Before: Mercure, J.P., Crew III, Peters, Lahtinen and Kane, JJ. __________ Hacker & Murphy L.L.P., Latham (Carolyn B. George of counsel), for third-party defendant-appellant. D’Agostino, Krackeler, Baynes & Maguire P.C., Menands (Mia D. Van Auken of counsel), for Albany Medical Center and another, defendants and third-party plaintiffs-respondents. __________ Lahtinen, J. Appeal from an order of the Supreme Court (Malone Jr., J.), entered June 25, 2004 in Albany County, which denied third-party defendant’s motion for summary judgment dismissing the third-party complaint. Plaintiff was injured while working on an asbestos removal project and successfully established Labor Law § 240 (1) liability of the owners, defendants Albany Medical Center and Albany Medical Center Hospital (hereinafter collectively referred to as AMC) (9 AD3d 643 [2004]). AMC commenced a third-party action against plaintiff’s employer (hereinafter the employer) alleging that the employer was contractually required to indemnify AMC and had breached its obligation to procure insurance naming AMC as an insured. Following disclosure, the employer moved for summary judgment dismissing the third-party complaint. Supreme Court denied the motion. The employer appeals. Workers’ Compensation Law § 11 prohibits a third-party claim for indemnification against an employer unless the plaintiff suffered a “grave injury” or there existed a written contract in which the employer agreed to an indemnification provision (see Flores v Lower E. Side Serv. Ctr., 4 NY3d 363, 367 [2005]). Since plaintiff did not suffer a grave injury, the dispute here focuses on whether there was a prior written contract in which the employer agreed to indemnify AMC for personal injuries sustained by workers at the job site. The employer initially argues that a contract for indemnification was not established because the document was not signed by a representative of the employer and the indemnification language was on the back page of the two-sided purchase order, but only the front page had been faxed from AMC to the employer. However, there was evidence of a well-established business relationship between AMC and the employer, with over 50 contracts between the entities in the three years preceding this agreement. Many of those prior agreements used the same two-sided purchase order and the employer had been supplied with the back page in many of the previous instances. Moreover, the front side of the subject purchase order provided that the “order is to be accepted subject to conditions listed on [the] reverse side.” In light of this evidence and the fact that a contract such as this one “may be valid even if it is not signed by the party to be charged” (id. at 368), we agree with Supreme Court that there are factual issues as to whether the employer agreed to the terms on the back page as part of this contract. Nor are we persuaded by the employer’s alternative argument that the language on the back page of the purchase order was insufficient to establish an indemnification obligation for personal injuries resulting from construction work. The relevant clause states: “[The employer] agrees to defend, indemnify and hold AMC harmless against all claims and demands of all persons not parties to this order of whatsoever kind or nature, which may arise or be alleged to arise in connection with the installation, operation, use, maintenance, servicing, supervision, ownership and control of the goods which are the subject of this purchase order.” The general rule as to indemnification clauses is that “‘[w]hen a party is under no legal duty to indemnify, a contract assuming that obligation must be strictly construed to avoid reading into it a duty which the parties did not intend to be assumed’” (Tonking v Port Auth. of N.Y. & N.J., 3 NY3d 486, 490 [2004], quoting Hooper Assoc. v AGS Computers, 74 NY2d 487, 491 [1989]; see Rodrigues v N & S Bldg. Contrs., 8 AD3d 876, 877-878 [2004], lv granted 3 NY3d 612 [2004]). Here, the indemnification clause was written in the broadest of terms requiring the employer “to defend, indemnify and hold AMC harmless against all claims and demands of all persons not parties to this order of whatsoever kind or nature” (cf. Toledo v Long Is. Jewish Med. Ctr., 309 AD2d 921, 922 [2003] ["the subject indemnification clause only related to 'claims . . . arising out of and in connection with the purchase and/or use of the goods covered by [the] [purchase] order’ between the parties”]). Subjecting this language to the applicable standard of strict construction, we find it sufficient to impose upon the employer a duty to indemnify AMC under the facts giving rise to the underlying third-party claim (see Potter v M.A. Bongiovanni, Inc., 271 AD2d 918, 918-919 [2000]; see also Tkach v City of New York, 278 AD2d 227, 229 [2000]). Mercure, J.P., Crew III, Peters and Kane, JJ., concur. ORDERED that the order is affirmed, with costs.

 
Reprints & Licensing
Mentioned in a Law.com story?

License our industry-leading legal content to extend your thought leadership and build your brand.

More From ALM

With this subscription you will receive unlimited access to high quality, online, on-demand premium content from well-respected faculty in the legal industry. This is perfect for attorneys licensed in multiple jurisdictions or for attorneys that have fulfilled their CLE requirement but need to access resourceful information for their practice areas.
View Now
Our Team Account subscription service is for legal teams of four or more attorneys. Each attorney is granted unlimited access to high quality, on-demand premium content from well-respected faculty in the legal industry along with administrative access to easily manage CLE for the entire team.
View Now
Gain access to some of the most knowledgeable and experienced attorneys with our 2 bundle options! Our Compliance bundles are curated by CLE Counselors and include current legal topics and challenges within the industry. Our second option allows you to build your bundle and strategically select the content that pertains to your needs. Both options are priced the same.
View Now
September 05, 2024
New York, NY

The New York Law Journal honors attorneys and judges who have made a remarkable difference in the legal profession in New York.


Learn More
April 29, 2024 - May 01, 2024
Aurora, CO

The premier educational and networking event for employee benefits brokers and agents.


Learn More
May 15, 2024
Philadelphia, PA

The Legal Intelligencer honors lawyers leaving a mark on the legal community in Pennsylvania and Delaware.


Learn More

Atlanta s John Marshall Law School is seeking to hire one or more full-time, visiting Legal WritingInstructors to teach Legal Research, Anal...


Apply Now ›

Shipman is seeking an associate to join our Labor & Employment practice in our Hartford, New Haven, or Stamford office. Candidates shou...


Apply Now ›

Evergreen Trading is a media investment firm headquartered in NYC. We help brands achieve their goals by leveraging their unwanted assets to...


Apply Now ›
04/15/2024
Connecticut Law Tribune

MELICK & PORTER, LLP PROMOTES CONNECTICUT PARTNERS HOLLY ROGERS, STEVEN BANKS, and ALEXANDER AHRENS


View Announcement ›
04/11/2024
New Jersey Law Journal

Professional Announcement


View Announcement ›
04/08/2024
Daily Report

Daily Report 1/2 Page Professional Announcement 60 Days


View Announcement ›