De Milio v. Borghard, 55 N.Y.2d 220 (1982): Non-Delegable Duty and Common-Law Indemnity in Construction Accidents

55 N.Y.2d 220 (1982)

When a party’s liability arises from a non-delegable duty imposed by statute, and that party did not exercise actual control over the work that caused the injury, they are entitled to common-law indemnity from the party directly responsible for the negligent act.

Summary

This case concerns a construction worker’s injury and the allocation of liability between the property owner (New York Telephone) and the subcontractor (Lakelands Precast). The Court of Appeals modified the lower court’s order, holding that the trial court erred in refusing to charge contributory negligence as a bar to recovery. Further, because New York Telephone’s liability arose solely from its non-delegable duty under Labor Law § 241(6) and it did not exercise actual control over the work, it was entitled to indemnification from Lakelands, the party whose employee’s negligence caused the injury. The Court ordered a new trial on New York Telephone’s liability to the plaintiffs and, if found liable, directed a verdict in its favor on its claim over against Lakelands.

Facts

The plaintiff, a construction worker, was injured during the offloading of a vault at a construction site. Lakelands Precast, Inc., was the subcontractor responsible for offloading the vault. New York Telephone Company was the owner of the property and held responsible for the project’s compliance with Labor Law.

Procedural History

The trial court initially ruled against New York Telephone. The Appellate Division affirmed. New York Telephone appealed to the New York Court of Appeals. The Court of Appeals modified the order, granting a new trial on New York Telephone’s liability and directing a verdict in its favor against Lakelands Precast on the claim over, should it be found liable to the plaintiffs.

Issue(s)

1. Whether the trial court erred in refusing to charge contributory negligence as a bar to recovery by the plaintiffs.

2. Whether New York Telephone, whose liability arises from a non-delegable duty under Labor Law § 241(6), is entitled to common-law indemnity from Lakelands Precast, the subcontractor whose employee’s negligence caused the injury, given that New York Telephone did not exercise actual control over the work.

Holding

1. Yes, because the trial court erred in refusing to charge contributory negligence as a bar to recovery by plaintiffs.

2. Yes, because New York Telephone’s liability stemmed from a non-delegable duty, and there was no evidence it exercised actual control over the offloading operation. Therefore, it is entitled to common-law indemnity from Lakelands Precast.

Court’s Reasoning

The Court reasoned that the trial court erred by not allowing the jury to consider the plaintiffs’ contributory negligence. Regarding indemnity, the Court emphasized that New York Telephone’s liability was based on the non-delegable duty imposed by Labor Law § 241(6). This section of the Labor Law imposes a duty upon owners and general contractors to provide reasonable and adequate protection and safety to construction workers. However, the court noted, “There being no evidence that it [New York Telephone] had authority to exercise or in fact did exercise control over the offloading of the vault by Lakelands’ employee in the course of which the plaintiff’s injury occurred, New York Telephone was entitled under principles of common-law indemnity to a directed verdict on its claim over.” The key factor was the lack of evidence that New York Telephone controlled the specific work that led to the injury. Because Lakelands Precast was directly responsible for the negligent act, New York Telephone was entitled to indemnification for any liability arising from its statutory duty. This case illustrates the principle that a party held liable due to a non-delegable duty can seek indemnification from the party whose direct negligence caused the harm, provided the former did not exercise control over the negligent act. This prevents unfair allocation of liability when a party is only vicariously liable due to statute and did not contribute to the negligence.