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7th Circuit: New indemnity provision does not release employer from liability

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An employer will have to pay $4.23 million after the 7th Circuit Court of Appeals was unconvinced by the employer’s argument that language in a later contract superseded that of an earlier contract.

The 7th Circuit affirmed the judgment of the U.S. District Court of the Northern District of Indiana, Fort Wayne Division, against Davis H. Elliot Co., Inc. in Mobile Tool International, Inc., and MTI Insulated Products, Inc., v. Davis H. Elliot Company, Inc., 12-2673.

Elliot, a Virginia-based company, leased bucket trucks form TECO, Inc., an Indiana corporation. Under terms of the lease contract, Elliot agreed to release, indemnify and hold TECO harmless from liability, loss, damage, expense, causes of actions, suits, claims or judgments arising from injury to an individual or damage to property.

When Mobile Tool International, Inc., acquired several assets from TECO, it began sending out a form invoice to Elliot each month. The invoice contains a separate indemnification clause that required Elliot to instruct all persons on the proper use and maintenance of the trucks, and that Mobile shall not be liable for any losses, costs, forfeiture or damages resulting from Elliot’s failure to provide instruction.

In June 2000, Samuel Large, an employee of Elliot, was injured while using the bucket truck. Large sued TECO and Mobile for negligent design and manufacture, product liability, and breach of express and implied warranties.

In April 2004, Mobile filed a third-party complaint against Elliot, requesting that Elliot be required to provide defense and indemnification to Mobile under the terms of the lease.

The Indiana District Court agreed with Mobile and held Elliot was required to defend and indemnify Mobile according to terms of the lease.

On appeal, Elliot argued the District Court erred in concluding that the lease, as opposed to the later invoice, controlled, requiring Elliot to defend and indemnify Mobile. Elliot asserted that the invoice superseded the terms of the lease, thus eliminating Elliot’s duty to defend and indemnify.

The 7th Circuit described Elliot’s arguments as “unconvincing.”

Comparing the invoice’s indemnity provision with the lease’s provision, the 7th Circuit agreed with the District Court that the language in the invoice did not supersede the language in the lease.

 “We find that these two provisions actually harmonize very well with one another, as opposed to conflicting,” Judge J.P. Stadtmueller wrote for the court. “The original Lease set forth a broad duty to defend and indemnify in situations arising primarily from use and operation of the bucket truck; the Invoice expanded that duty further to situations before use and operation – namely training and maintenance. On the plain language of these provisions, we must conclude that they do not conflict with one another.”
 

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  • Wrong Link
    The link in the article appears to be to a different case - United States v. Michael Brock.

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  1. Actually, and most strikingly, the ruling failed to address the central issue to the whole case: Namely, Black Knight/LPS, who was NEVER a party to the State court litigation, and who is under a 2013 consent judgment in Indiana (where it has stipulated to the forgery of loan documents, the ones specifically at issue in my case)never disclosed itself in State court or remediated the forged loan documents as was REQUIRED of them by the CJ. In essence, what the court is willfully ignoring, is that it is setting a precedent that the supplier of a defective product, one whom is under a consent judgment stipulating to such, and under obligation to remediate said defective product, can: 1.) Ignore the CJ 2.) Allow counsel to commit fraud on the state court 3.) Then try to hide behind Rooker Feldman doctrine as a bar to being held culpable in federal court. The problem here is the court is in direct conflict with its own ruling(s) in Johnson v. Pushpin Holdings & Iqbal- 780 F.3d 728, at 730 “What Johnson adds - what the defendants in this suit have failed to appreciate—is that federal courts retain jurisdiction to award damages for fraud that imposes extrajudicial injury. The Supreme Court drew that very line in Exxon Mobil ... Iqbal alleges that the defendants conducted a racketeering enterprise that predates the state court’s judgments ...but Exxon Mobil shows that the Rooker Feldman doctrine asks what injury the plaintiff asks the federal court to redress, not whether the injury is “intertwined” with something else …Because Iqbal seeks damages for activity that (he alleges) predates the state litigation and caused injury independently of it, the Rooker-Feldman doctrine does not block this suit. It must be reinstated.” So, as I already noted to others, I now have the chance to bring my case to SCOTUS; the ruling by Wood & Posner is flawed on numerous levels,BUT most troubling is the fact that the authors KNOW it's a flawed ruling and choose to ignore the flaws for one simple reason: The courts have decided to agree with former AG Eric Holder that national banks "Are too big to fail" and must win at any cost-even that of due process, case precedent, & the truth....Let's see if SCOTUS wants a bite at the apple.

  2. I am in NJ & just found out that there is a judgment against me in an action by Driver's Solutions LLC in IN. I was never served with any Court pleadings, etc. and the only thing that I can find out is that they were using an old Staten Island NY address for me. I have been in NJ for over 20 years and cannot get any response from Drivers Solutions in IN. They have a different lawyer now. I need to get this vacated or stopped - it is now almost double & at 18%. Any help would be appreciated. Thank you.

  3. I am in NJ & just found out that there is a judgment against me in an action by Driver's Solutions LLC in IN. I was never served with any Court pleadings, etc. and the only thing that I can find out is that they were using an old Staten Island NY address for me. I have been in NJ for over 20 years and cannot get any response from Drivers Solutions in IN. They have a different lawyer now. I need to get this vacated or stopped - it is now almost double & at 18%. Any help would be appreciated. Thank you.

  4. Please I need help with my class action lawsuits, im currently in pro-se and im having hard time findiNG A LAWYER TO ASSIST ME

  5. Access to the court (judiciary branch of government) is the REAL problem, NOT necessarily lack of access to an attorney. Unfortunately, I've lived in a legal and financial hell for the past six years due to a divorce (where I was, supposedly, represented by an attorney) in which I was defrauded of settlement and the other party (and helpers) enriched through the fraud. When I attempted to introduce evidence and testify (pro se) in a foreclosure/eviction, I was silenced (apparently on procedural grounds, as research I've done since indicates). I was thrown out of a residence which was to be sold, by a judge who refused to allow me to speak in (the supposedly "informal") small claims court where the eviction proceeding (by ex-brother-in-law) was held. Six years and I can't even get back on solid or stable ground ... having bank account seized twice, unlawfully ... and now, for the past year, being dragged into court - again, contrary to law and appellate decisions - by former attorney, who is trying to force payment from exempt funds. Friday will mark fifth appearance. Hopefully, I'll be allowed to speak. The situation I find myself in shouldn't even be possible, much less dragging out with no end in sight, for years. I've done nothing wrong, but am watching a lot of wrong being accomplished under court jurisdiction; only because I was married to someone who wanted and was granted a divorce (but was not willing to assume the responsibilities that come with granting the divorce). In fact, the recalcitrant party was enriched by well over $100k, although it was necessarily split with other actors. Pro bono help? It's a nice dream ... but that's all it is, for too many. Meanwhile, injustice marches on.

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