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Contracts Keyed to Burton
Pacific Gas and Electric Co. v. G.W. Thomas Drayage & Rigging Co.
Citation:69 Cal. 2d 33, 69 Cal. Rptr. 561, 442 P.2d 641
ProfessorMelissa A. Hale
CaseCast™ – "What you need to know"
Pacific Gas and Electric Company (hereinafter “Pacific Gas”) (plaintiff) hired G.W. Thomas Drayage & Rigging Company (hereinafter “G.W. Thomas”) (defendant) to remove and replace the metal cover of a steam turbine. G.W. Thomas agreed to perform the work at its own risk and expense. G.W. Thomas also agreed to indemnify Pacific Gas against all loss, damage, expense, and liability. During the work, the metal cover fell and injured the rotor of the turbine. It cost Pacific Gas $25,144.51 to repair the rotor. Pacific Gas sued G.W. Thomas to recover damages. At trial, G.W. Thomas offered to prove via extrinsic evidence that the indemnity clause only meant to cover injury to property of third parties and not to Pacific Gas’s property. The trial court refused to admit such extrinsic evidence and entered a judgment in favor of Pacific Gas.
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