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Contracts Keyed to Barnett
Pacific Gas and Electric Company v. G. W. Thomas Drayage & Rigging Co
Citation:
69 Cal. 2d 33 (1968)
ProfessorMelissa A. Hale
CaseCast™ – "What you need to know"
Facts
Pacific Gas and Electric Company (PG&E) contracted with G. W. Thomas Drayage & Rigging Co. to perform repairs on a steam turbine. The contract included an indemnity clause stating that Thomas Drayage would “indemnify” PG&E 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 repair work, the turbine’s cover fell and caused damage to the turbine’s rotor. PG&E repaired the damage at a cost of $25,144.51 and sought to recover this amount from Thomas Drayage under the indemnity clause. Thomas Drayage contended that the indemnity clause was meant to cover only third-party property damage, not damage to PG&E’s own property.
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