Tighe v. American Compressed Gases, Inc.
Court: Appellate Division of the Supreme Court of the State of New York; February 16, 1998; New York; State Appellate Court
The Supreme Court of Bronx County, under Justice Stanley Green, issued an order on January 30, 1997, granting Quantum Chemical Corporation's motion for summary judgment to dismiss counterclaims and affirmative defenses related to contractual indemnity filed by Texas Eastern Transmission Corporation and Texas Eastern Products Pipeline Company. The court affirmed this decision, along with the dismissal of Texas Eastern’s cross motion seeking to dismiss Quantum’s contribution claims. The court found that according to the Terminal Access Agreement, Texas Eastern, as the supplier of liquid propane gas, was obligated to provide Quantum with gas containing the required malodorant to meet federal standards. Quantum was not responsible for indemnifying Texas Eastern for any noncompliance unless it was proven that Quantum or its representative specifically ordered non-odorized propane, which there was no evidence for. While acknowledging that the delivery truck driver had a duty to ensure the propane was properly odorized, the court noted that the absence of an indemnity clause in the relevant section of the agreement prevented Texas Eastern from pursuing contractual indemnity claims. The ruling was supported by precedents, including Margolin v. New York Life Ins. Co., White/Tishman E. v. Banko, and Mobil Oil Corp. v. Wellpoint Dewatering Corp. The decision was unanimously affirmed, with costs awarded.