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Stone & Webster Engineering Corp. v. United Industrial Syndicated, Inc.

Citations: 16 Mass. App. Ct. 948; 451 N.E.2d 131; 1983 Mass. App. LEXIS 1404

Court: Massachusetts Appeals Court; July 7, 1983; Massachusetts; State Appellate Court

Narrative Opinion Summary

In the case between Stone Webster Engineering Corp. and United Industrial Syndicated, Inc., the court addressed the issue of indemnification following a previous judgment in Jennett v. Colorado Fuel & Iron Corp. Stone Webster sought indemnification from Portland for judgments paid in that case, which arose from independent acts of negligence by both parties. The court denied Stone Webster's motion for summary judgment, ruling in favor of Portland, and emphasized that indemnification is applicable only when a party faces derivative liability, not when they are directly negligent. The jury found that Portland was negligent in supplying defective equipment, while Stone Webster was negligent for not ensuring the testing of a steel cable sling. The court determined that Stone Webster's liability was not merely vicarious, precluding indemnification, even though Portland breached its contract regarding equipment testing. Furthermore, the court noted that previous rulings permitting indemnity in certain contexts were not applicable. The judgment was affirmed, and any issues related to contribution under General Laws chapter 231B were considered within the Jennett case.

Legal Issues Addressed

Breach of Contract and Indemnity Claims

Application: A breach of contract by one party does not allow another party to claim indemnity if their own negligence contributed to the liability.

Reasoning: This determination was supported by case law, indicating that a party cannot claim indemnity for liability arising from its own negligence, even in situations where a breach by another party is present.

Indemnification and Independent Negligence

Application: Indemnification is not applicable when a party is independently negligent, as both parties in this case were found to be.

Reasoning: The court emphasized that indemnity is only applicable when a party is not involved in the negligent act but may face derivative liability.

Negligence and Liability

Application: Stone Webster could not seek indemnification for its own negligence in failing to test the steel cable sling, despite Portland's breach regarding the equipment.

Reasoning: The judge concluded that Stone Webster's liability was not merely vicarious and could not seek indemnification based on Portland's breach of contract regarding the cable sling testing.