The Underlying Lawsuit:
Godfrey Fagot, a former pipefitter/welder, sued several companies, including Turner Industries and Honeywell, claiming he developed mesothelioma due to asbestos exposure while working at Honeywell’s facility. Turner, a contractor for Honeywell, had signed contracts in 1978 and 1985 containing indemnity provisions.
The Indemnity Dispute:
Honeywell settled with Fagot and then sought indemnity from Turner, arguing that the contracts required Turner to indemnify them for all injury claims arising from Turner’s work, except those caused solely by Honeywell’s negligence. Turner countered, claiming the contracts were ambiguous and didn’t cover Honeywell’s own negligence or strict liability.
The Court Rulings:
- The trial court granted Honeywell’s motion for partial summary judgment, finding the indemnity provisions unambiguous and requiring Turner to indemnify Honeywell.
- The court also denied Turner’s motion for summary judgment, stating that Turner failed to prove there were no genuine issues of material fact.
- On appeal, the Court of Appeal affirmed both trial court judgments, upholding Honeywell’s right to indemnity from Turner.
Key Takeaways
This case underscores several important points:
- Clarity in Contract Language: The importance of clear and unambiguous language in indemnity clauses cannot be overstated. Vague or poorly worded clauses can lead to costly litigation and unexpected outcomes.
- Understanding Indemnity Obligations: Businesses should carefully review and understand the indemnity provisions in their contracts, especially when working in high-risk industries.
- The Role of the Courts: When disputes arise, courts play a crucial role in interpreting contract language and determining the parties’ intent.
The Fagot v. Dow Chemical case serves as a cautionary tale about the potential consequences of unclear contract language. It highlights the need for businesses to be proactive in understanding their contractual obligations, particularly when it comes to indemnity provisions.
Written by Berniard Law Firm
Other Berniard Law Firm Blog Articles involving Mesothelioma: What is the “Substantial Factor Test” in Louisiana Asbestos and Mesothelioma Litigation? and Mesothelioma Victim Survives Summary Judgment in Lawsuit Over Asbestos Exposure by Point Coupee Parish Sugar Mill