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Contracts Keyed to Blum
Pacific Gas & Electric Co. v. G.W. Thomas Drayage & Rigging Co.
Citation:
69 Cal. 2d 33, 442 P.2d 641, 69 Cal. Rptr. 561 (1968)ProfessorMelissa A. Hale
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Facts
The plaintiff hired defendant to remove and replace the upper metal cover of a steam turbine. Defendant agreed to perform the work “at (its) own risk and expense” and 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.” The defendant got over $50,000 of insurance to cover property damage. During the work, the cover fell and damaged an exposed rotor of the turbine, causing $25,144.51 in damage. Plaintiff paid for the repairs and then brought this claim to receive those costs from the defendant on the claim that the indemnity provision covered damage to all property regardless of ownership. Defendant tried to introduce extrinsic evidence showing that the intent of the parties was to only cover the property of third parties, not the plaintiff. The lower court did not allow this evidence in and only looked to the express language of the contract.
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