Glielmi v. Toys “R” Us, Inc., 62 N.Y.2d 664 (1984)

A contractor whose negligence contributes to a worker’s injury is obligated to indemnify the owner and tenant under a contractual indemnification provision, even if the owner’s liability is vicarious under Labor Law § 240(1).

Summary

This case addresses indemnification obligations in the context of New York Labor Law § 240(1). Angelo, a worker, was injured in a fall from a ladder. He sued the owner-trustees, the tenant (Toys “R” Us), and the contractor. The jury found all three liable. The contractor appealed, arguing it should not be obligated to indemnify the owner and tenant. The New York Court of Appeals affirmed the order, holding that the contractor was obligated to indemnify the tenant and owner-trustees because the jury found the contractor negligent and the owner’s liability was vicarious. The contractual indemnification provision covered the tenant, and common-law indemnity principles extended the obligation to the owner-trustees.

Facts

Angelo fell from a ladder while working at a construction site. The ladder was not secured at the upper end, and no scaffolds were provided. Angelo sustained injuries as a result of the fall. He sued the owner-trustees of the property, the tenant, Toys “R” Us, and the contractor responsible for the work.

Procedural History

The trial court instructed the jury to consider the owner-trustees and tenant as a single unit for liability purposes. The jury found the owner-trustees, the tenant, and the contractor liable for Angelo’s injuries. The contractor appealed to the Appellate Division, which affirmed the trial court’s judgment. The contractor then appealed to the New York Court of Appeals.

Issue(s)

Whether the contractor is obligated to indemnify the tenant and owner-trustees for Angelo’s injuries, given the jury’s finding of the contractor’s negligence and the owner’s vicarious liability under Labor Law § 240(1), and a contractual indemnification agreement between the contractor and the tenant.

Holding

Yes, because the jury found that Angelo’s injuries were caused in part by the negligence of the contractor, the contractor was obligated under the indemnification provision of the contract to indemnify the tenant, and this obligation also extended to the owner-trustees, whose liability under Labor Law § 240(1) was vicarious.

Court’s Reasoning

The Court of Appeals affirmed the lower court’s decision based on several key points. First, the court noted that there was sufficient evidence for the jury to find the owner-trustees and tenant absolutely liable under Labor Law § 240(1) due to violations of state safety regulations regarding ladder securement and scaffold provision. Furthermore, the jury instructions, to which no pertinent objection was made, allowed the jury to consider these violations as evidence of the contractor’s negligence. Because the jury found that Angelo’s injuries were partly caused by the contractor’s negligence, the indemnification provision in the construction contract obligated the contractor to indemnify the tenant. The court treated the owner-trustees and tenant as a single unit, extending the indemnification obligation to the owner-trustees as well. Even if they were treated as separate entities, the court reasoned that the owner-trustees would be entitled to common-law indemnity from the tenant and contractor because their liability under Labor Law § 240(1) was vicarious. As the court stated, “inasmuch as their liability under subdivision 1 of section 240 was in this instance vicarious only.” The court cited Kemp v Lakelands Precast, 55 NY2d 1032 and Kelly v Diesel Constr. Div., 35 NY2d 1 in support of this principle. This vicarious liability, coupled with the contractor’s negligence, triggered the indemnification obligation. The decision underscores the importance of contractual indemnification clauses in construction contracts and clarifies their interaction with Labor Law § 240(1) in cases of vicarious liability.