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Contracts Keyed to Kunz
Egan Machinery Co. v. Mobil Chemical Co.
Citation:
660 F. Supp. 35 (D. Conn. 1986)Facts
In 1973, Egan Machinery Co. submitted quotations for a two-sided eighty-inch precoater to Mobil Chemical Co. Mobil responded with a purchase order containing language expressly limiting acceptance to its terms and rejecting additional terms unless expressly agreed to in writing. Egan then sent an acknowledgment form stating the order was accepted on condition that Egan’s Standard Conditions of Sale were accepted, and that receipt without prompt objection constituted acceptance of these terms. Among Egan’s conditions was paragraph 12, an indemnity provision requiring Mobil to indemnify Egan for liability from injuries if Mobil failed to use safety devices or promptly report accidents. In 1977, a Mobil employee was injured while operating the precoater. The employee sued Egan, resulting in a $75,000 settlement paid by Egan’s insurer, Amico. Egan and Amico then sued Mobil seeking indemnification based on the provision in their Standard Conditions of Sale.
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