Opinion
No. 2-397 / 01-1587
Filed August 28, 2002
Appeal from the Iowa District Court for Polk County, Larry J. Eisenhauer, Judge.
Mark Martens appeals the district court's decision in a declaratory judgment action construing his duties as a tenant under a lease. AFFIRMED.
Philip H. Dorff of Hopkins Huebner, P.C., Des Moines, for appellant.
Stephen D. Hardy and Clark I. Mitchell of Grefe Sidney, P.L.C., Des Moines, for appellee.
Considered by Sackett, C.J., and Huitink and Hecht, JJ. Eisenhauer, J., takes no part.
Mark Martens, doing business as Blackhawk Lighting, appeals the district court's decree in a declaratory judgment action construing his duties as a tenant under a lease. Martens claims the district court erred in declaring that the terms obligated him to indemnify Iowa Wine and Beverage, Inc., the landlord, for its own negligence. We affirm.
I. Background Facts and Proceedings
In 1996 Martens entered into a lease agreement with the Isadore Pomerantz Trust and Mabel Pomerantz, individually, for certain property in Des Moines. In December 1998 the Pomerantzes sold the property to Iowa Wine, and Iowa Wine took over the Pomerantzes' rights and duties under the lease.
On January 24, 1999, Gustavo Moraza, a minor, was injured at the property leased by Martens. Moraza's mother, Brenda Arreola, brought separate tort suits against Martens and Iowa Wine. Martens settled his suit for $17,500. The Iowa Wine suit was settled for $11,000.
Iowa Wine filed a petition for declaratory judgment alleging that under the terms of the parties' lease, Martens should indemnify it for the amount it paid to Arreola, plus costs, expenses, and attorney fees. The lease provision at issue provides:
Except as to any negligence of the Landlord, arising out of roof and structural parts of the building, Tenant will protect, indemnify and save harmless the Landlord from and against any and all loss, costs, damage and expenses occasioned by, or arising out of, any accident or other occurrence causing or inflicting injury and/or damage to any person or property, happening or done, in, upon or about the leases premises, or due directly or indirectly to the tenancy, use or occupancy thereof, or any part thereof by the Tenant or any person claiming through or under the Tenant.
The district court found the clear intent of the agreement was to provide indemnification for Iowa Wine's own negligence. The court ordered Martens to indemnify Iowa Wine for the settlement payment and costs of defense. Martens appealed.
II. Scope of Review
When the facts are not in dispute, our review in a declaratory judgment action is for the correction of errors at law. Seeman v. Iowa Dep't of Human Servs., 604 N.W.2d 53, 56 (Iowa 1999). The parties in this case filed a joint stipulation of facts. Our review is for the correction of errors at law.
III. Merits
Indemnity agreements are enforced according to their terms, as in any other contract case. Martin Pitz Assocs., Inc. v. Hudson Constr. Servs., Inc., 602 N.W.2d 805, 808 (Iowa 1999). Absent ambiguity in the agreement, we are bound by the language expressed in the contract. McComas-Lacina Constr. Co. v. Able Constructors, 641 N.W.2d 841, 845 (Iowa 2002).
An agreement relieving an indemnitee from its own negligence, however, is looked on with some disfavor. Employers Mut. Cas. Co. v. Chicago N.W. Transp. Co., 521 N.W.2d 692, 694 (Iowa 1994); Thornton v. Guthrie County Rural Elec. Co-op Ass'n, 467 N.W.2d 574, 576 (Iowa 1991) ("Our cases recognize that there is something anomalous in seeking indemnity from another for damages resulting from one's own negligence."). For this reason, a party will not be indemnified for its own negligence unless the agreement provides for this in clear and unequivocal language. Martin Pitz, 602 N.W.2d at 809.
"On the other hand we have long recognized that a sufficiently clear contractual provision for indemnity is enforceable, even when it applies to the indemnitee's own negligence." Thornton, 467 N.W.2d at 567-77. There is no requirement that the agreement expressly relieve the indemnitee for liability due to its own negligence, "if the words of the agreement clearly import that intent." Herter v. Ringland-Johnson-Crowley Co., 492 N.W.2d 672, 674 (Iowa 1992) (citing Payne Plumbing Heating Co., Inc. v. Bob McKiness Excavating Grading, Inc., 382 N.W.2d 156, 160 (Iowa 1986)); see also Hysell v. Iowa Public Serv. Co., 534 F.2d 775, 785 (8th Cir. 1976) ("Under Iowa law, a contract need not expressly specify that it will operate to indemnify a party for its own negligence if the clear intent of the language is to provide such indemnification.").
The lease agreement provides Martens will indemnify Iowa Wine for all damages arising out of an injury on the premises, "[e]xcept as to any negligence of the Landlord, arising out of the roof and structural parts of the building. . . ." By specifically excepting negligence arising out of the roof and structural parts of the building, the intent of the agreement is to make Martens responsible for Iowa Wine's negligence in other areas. We concur in the district court's conclusion, "the clear intent of the language of the agreement is to provide indemnification for Iowa Wine's own negligence."
We affirm the decision of the district court.
AFFIRMED.
Hecht, J., concurs; Sackett, C.J., concurs specially.
I too would affirm because I find no evidence of negligence on the part of the plaintiff.