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Contracts Keyed to Kuney
Pacific Gas & Electric Co. v. G.W. Thomas Drayage & Rigging Co.
Citation:
69 Cal. 2d 33, 69 Cal. Rptr. 561, 442 P.2d 641 (1968).
ProfessorMelissa A. Hale
CaseCast™ – "What you need to know"
Facts
In 1960, defendant agreed to furnish labor and equipment to remove and replace an upper metal cover on plaintiff’s steam turbine. In the contract, 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 [the] contract.” Defendant also procured a $50,000 insurance policy to cover liability for injury to property. During the course of defendant’s work, the cover fell and injured an exposed rotor on the steam turbine. Plaintiff spent $25,144.51 in repairs, spurring this action.
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