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Reeves v. Welch

Appellate Division of the Supreme Court of New York, Fourth Department
Feb 27, 1987
127 A.D.2d 1000 (N.Y. App. Div. 1987)

Summary

In Welch v. Reeves, 142 Neb. 171, 5 N.W.2d 275, a case similar in principle, this court said: "Did plaintiffs' evidence sustain the damages recovered? The only evidence indicating the value of the property is the purchase price.

Summary of this case from Jacobs v. Korst

Opinion

February 27, 1987

Appeal from the Supreme Court, Erie County, Fudeman, J.

Present — Callahan, J.P., Doerr, Green, Pine and Davis, JJ.


Order unanimously reversed on the law without costs and motion granted. Memorandum: On May 25, 1982, plaintiff sustained personal injuries when she lost her balance and fell after stepping on a marble patio chip on the curb or sidewalk area near the entrance to a K-Mart store at 1001 Hertel Avenue, Buffalo, New York. Defendant Welch was the owner of the premises and defendant K-Mart was the tenant. Plaintiff commenced separate actions against the defendants which were subsequently consolidated.

K-Mart thereafter moved for summary judgment against Welch on its cross claim for contractual indemnification based upon a provision in the parties' lease agreement. Special Term denied the motion. We now reverse.

It is well settled that "the law frowns upon contracts intended to exculpate a party from the consequences of his own negligence and though, with certain exceptions, they are enforceable, such agreements are subject to close judicial scrutiny". (Niagara Frontier Transp. Auth. v. Tri-Delta Constr. Corp., 107 A.D.2d 450, 451, affd 65 N.Y.2d 1038; see also, Van Dyke Prods. v. Eastman Kodak Co., 12 N.Y.2d 301, 304.) Accordingly, unless the intention of the parties to insulate one of them from liability for his own negligence is expressed in unequivocal terms, the exculpatory clause will not operate to effect such a result. However, this rule has been liberalized somewhat where, as here, the indemnification agreement has been "negotiated at arm's length between * * * sophisticated business entities", the intent being to allocate between themselves the risk of liability to third parties by including the obligation of one party to obtain insurance coverage in a specific amount (Hogeland v. Sibley, Lindsay Curr Co., 42 N.Y.2d 153, 158, 161; Niagara Frontier Transp. Auth. v. Tri-Delta Constr. Corp., supra, at 451). In such circumstances, as here, so long as the intention to indemnify can be "clearly implied from the language and purposes of the entire agreement, and the surrounding facts and circumstances", it is unnecessary for the clause to refer expressly to the negligence of the party being indemnified (Margolin v. New York Life Ins. Co., 32 N.Y.2d 149, 153).

The indemnification clause herein provides in pertinent part: "During the lease term, Landlord shall keep Tenant insured against all statutory * * * damage to property or injuries and loss of life sustained by any person or persons within said common areas, in a policy or policies in the amount of Two Hundred Fifty Thousand Dollars ($250,000.00) with respect to injury to any one person and in the amount of One Million Dollars ($1,000,000.00) with respect to any one accident or disaster * * * and Landlord shall also indemnify and save Tenant harmless against such liability". Included within the definition of the term "common areas" are curbs, streets and sidewalks. Thus, it is clear that between Welch and K-Mart, the risk of liability for plaintiff's injury, which occurred on the curb or sidewalk, has been allocated to Welch.

Provisions similar to those here have been held to require indemnification even where it has been the indemnitee's negligence which has been responsible for the injuries sustained (Niagara Frontier Transp. Auth. v. Tri-Delta Constr. Co., supra, at 452, citing L.B. Smith, Inc. v. Bradley Williams, 58 N.Y.2d 672; Hogeland v. Sibley, Lindsay Curr Co., 42 N.Y.2d 153, supra; Margolin v. New York Life Ins. Co., 32 N.Y.2d 149, supra). Accordingly, Special Term erred in denying K-Mart's motion for summary judgment on its cross motion for contractual indemnification.


Summaries of

Reeves v. Welch

Appellate Division of the Supreme Court of New York, Fourth Department
Feb 27, 1987
127 A.D.2d 1000 (N.Y. App. Div. 1987)

In Welch v. Reeves, 142 Neb. 171, 5 N.W.2d 275, a case similar in principle, this court said: "Did plaintiffs' evidence sustain the damages recovered? The only evidence indicating the value of the property is the purchase price.

Summary of this case from Jacobs v. Korst

In Welch v. Reeves, 142 Neb. 171, 5 N.W.2d 275, this court held: "When a certain theory as to the measure of damages is relied upon by the parties in the trial court as the proper one, it will be adhered to on appeal whether it is correct or not.

Summary of this case from Griess v. Borchers
Case details for

Reeves v. Welch

Case Details

Full title:JEAN A. REEVES, Plaintiff, v. JAMES V. WELCH, Respondent, and K-MART…

Court:Appellate Division of the Supreme Court of New York, Fourth Department

Date published: Feb 27, 1987

Citations

127 A.D.2d 1000 (N.Y. App. Div. 1987)

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