New York Law Review

Tag: Common-Law Indemnity

  • Village East Tenants Corp. v. Daitch-Shopwell, Inc., 65 N.Y.2d 78 (1985): Landlord Liability and Indemnification When Retaining Control

    Village East Tenants Corp. v. Daitch-Shopwell, Inc., 65 N.Y.2d 78 (1985)

    An owner of a leased commercial building who retains the right to re-enter and inspect the premises, and to make repairs at the tenant’s expense if the tenant fails to do so, can be held liable for injuries caused by a defect on the premises under the New York City Administrative Code, and in such a case, is only entitled to contribution from the tenant, not full indemnification.

    Summary

    Plaintiff, an employee of Daitch-Shopwell (Daitch), a grocery store tenant, was injured in a fall on a staircase in the leased premises. She sued Village East, the owner-lessor. The lease obligated Daitch to maintain the premises, but Village East retained the right to inspect and make repairs. Plaintiff alleged the stairs were dimly lit and the handrail was improperly positioned, violating the New York City Administrative Code. The jury found Village East 40% at fault and Daitch 66 2/3% responsible for Village East’s share. Village East’s claim for common-law indemnity against Daitch was denied. The Court of Appeals affirmed, holding that Village East’s retained control and statutory duties under the Administrative Code made it liable, but only for its share of the damages, not full indemnification from the tenant. This ruling clarifies the allocation of liability between landlords and tenants when both have duties regarding property maintenance and safety.

    Facts

    Plaintiff was injured while descending a staircase in the Daitch-Shopwell grocery store where she worked. Daitch leased the premises from Village East. The staircase was built by Daitch about 10 years before the accident. The lease required Daitch to maintain the premises and make all necessary repairs. Village East retained the right to enter the premises for inspection and to make repairs at Daitch’s expense if Daitch failed to do so. Plaintiff claimed the stairs were dimly lit, and the handrail was too close to the wall, contributing to her fall. There was no evidence that Village East had actual knowledge of the defects.

    Procedural History

    Plaintiff sued Village East, who then initiated a third-party action against Daitch. The jury found Village East 40% liable for plaintiff’s injuries and apportioned Village East’s share of the liability, finding Daitch responsible for 66 2/3% of that share. Village East’s claim for 100% indemnification from Daitch was denied. The Appellate Division affirmed. Village East and Daitch appealed to the Court of Appeals.

    Issue(s)

    1. Whether the owner of a leased commercial building, who has no obligation to repair or maintain the premises but retains the right to re-enter and inspect and to make needed repairs at the tenant’s expense, can be held responsible for injuries due to a defect in the premises, under the New York City Administrative Code.

    2. Whether, if the owner may be held responsible, it is entitled to shift the entire responsibility to the tenant under principles of common-law indemnity or merely to contribution from the tenant.

    Holding

    1. Yes, because the owner had obligations under the Administrative Code and retained the right to re-enter the premises to inspect and make repairs.

    2. The owner is entitled only to contribution from the tenant, not full indemnification, because the owner had a direct duty to the plaintiff, not solely a derivative liability.

    Court’s Reasoning

    The Court relied on Tkach v. Montefiore Hosp. and Worth Distribs. v. Latham, which established that an owner out of possession can be held liable under statutes like Multiple Dwelling Law § 78 when they retain a right of re-entry. Here, Village East had obligations under the New York City Administrative Code, which has the force of statute. These obligations included safe maintenance of the building and specific requirements for handrail clearance and illumination. Because Village East retained the right to re-enter and inspect, it was charged with constructive notice of the dangerous condition. Its failure to remedy the defect formed the basis of its liability.

    Regarding indemnification, the Court distinguished this case from Rogers v. Dorchester Assocs. In Rogers, the owner had contracted with an independent contractor who had exclusive responsibility for maintenance. Here, Village East retained the right to inspect and repair, meaning it had a direct, non-delegable duty to the plaintiff. The court reasoned that apportionment, not indemnification, is appropriate when tortfeasors share responsibility for an injury. Village East was “being held liable for its own failure to exercise reasonable care” (quoting D’Ambrosio v. City of New York). The lease did not totally divest Village East of control or responsibility. Therefore, contribution, based on the parties’ respective degrees of fault, was the proper remedy. The court quoted Garrett v Holiday Inns stating generally, apportionment among tort-feasors, rather than a shifting of the entire loss through indemnification, is the proper rule “when ‘two or more tort-feasors share in responsibility for an injury, in violation of duties they respectively owe[] to the injured person’”

  • 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.