Contracts Keyed to Farnsworth
Pacific Gas & Electric Co. v. G.W. Thomas Drayage & Rigging Co.
ProfessorMelissa A. Hale
CaseCast™ – "What you need to know"
Facts
Defendant entered into a contract with Plaintiff to remove and replace the upper metal cover of Plaintiff’s steam turbine. Defendant agreed to indemnify Plaintiff “against all loss, damage, expense and liability resulting from…injury to property, arising out of or in any way connected with the performance of this contract.” During the work, the cover fell and injured the rotor of Plaintiff’s turbine. Plaintiff initiated this action to recover $25,144.51, the amount it spent on repairs. At trial, Defendant sought to introduce evidence that indicates that the indemnity clause was only meant to cover injury to property of third parties, not Plaintiff. The trial judge refused to admit the extrinsic evidence.
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Topic Resources
6m 23s