Source: http://masscases.com/cases/app/54/54massappct541.html
Timestamp: 2019-04-18 10:17:59+00:00

Document:
Present: PORADA, GILLERMAN, & GRASSO, JJ.
Indemnity. Contract, Indemnity, Condition precedent. Notice. Words, "Reasonable notice."
CIVIL ACTION commenced in the Superior Court Department on July 6, 1993.
A third-party complaint, filed on January 24, 1996, was heard by Margaret R. Hinkle, J., and a motion for modification was heard by her.
Stephen M.A. Woodworth for the defendant.
Christopher A. Kenney for the plaintiff.
PORADA, J. At issue is the enforceability of an indemnification agreement between Massachusetts Port Authority (Massport) and Johnson Controls, Inc. (Johnson), in a skilled trade contract. Johnson contends that the agreement is invalid because Massport failed to comply with the notice provisions of the contract and, alternatively, that it violates G. L. c. 149, § 29C, [Note 2] thus exempting Johnson from any liability under the agreement. A Superior Court judge determined that the indemnity agreement was valid but that Johnson was only liable for legal expenses incurred by Massport after it gave notice to Johnson of the underlying personal injury claim. Although we agree with the judge that the indemnity provision is valid, we reverse the judgment awarding reasonable legal fees to Massport on the ground that Massport failed to give reasonable notice of the underlying claim to Johnson in compliance with the terms of the agreement.
of this Contract under any circumstances except when caused by Building Manager's or Division's sole negligence or by the joint negligence of the Building Manager or Division and any person other than Contractor. Building Manager shall give Contractor reasonable notice of any claim made or suit instituted against Building Manager or Division which in any way would result in a claim of indemnification hereunder. Contractor shall have the right to compromise or participate in the defense of the same to the extent of its own interests." Article V, B.
17, 1995, the date that it first gave notice of Pierce's claim to Johnson, until September 10, 1996, the date that Johnson assumed control of the defense. Upon Massport's motion to modify the judgment, the judge subsequently determined that Massport was also entitled to reimbursement of its legal fees incurred in this action. Under an amended judgment, the judge ordered Johnson to pay Massport's reasonable legal fees from November 17, 1995, until November 24, 1998, the date of the trial of this action.
Indemnity provisions "are to be fairly and reasonably construed to ascertain the intention of the parties and to effectuate the purpose sought to be accomplished." Urban Inv. & Dev. Co. v. Turner Constr. Co., 35 Mass. App. Ct. 100 , 107 (1993). Johnson argues it was clearly the intent of the parties that the giving of reasonable notice of a claim for which indemnification could be sought was a condition precedent to triggering Johnson's obligation to indemnify, and since Massport failed to do so, Johnson has no obligation to indemnify Massport. We reject Johnson's argument that the giving of reasonable notice was a condition precedent to trigger Johnson's indemnification obligation. As noted by the trial judge, the parties were two business entities experienced in negotiating contracts. As such, if the parties intended that the giving of notice was a condition precedent to trigger the indemnification provision, they could easily have drafted contract language to so provide, through the use of words such as "on condition that," "provided that," or "if." Cheschi v. Boston Edison Co., 39 Mass. App. Ct. 133 , 142 (1995). In the absence of language usually employed to create a contingency or any clear indication in the contract as a whole that the parties intended that the giving of notice was a condition precedent to the performance of Johnson's obligation to indemnify, we conclude that the giving of reasonable notice was not a condition precedent.
eight months after it received notice of the claim. Johnson argues that the notice was, thus, not reasonable because it was untimely. Notwithstanding this time lag between the notice of Pierce's claim to Massport and the giving of notice of Pierce's claim to Johnson, the judge did not find that the notice was unreasonable. The judge did not explain the basis for her conclusion.
The contract does not define "reasonable notice." Giving those words their ordinary meaning, "reasonable notice" must be considered to be such notice or information of a fact as may fairly and properly be expected or required in particular circumstances. The key to the determination of fair or expected notice is the object or purpose of the notice provision.
should be assessed against Johnson for legal expenses incurred by Massport prior to its notice to Johnson of Pierce's claim, she nevertheless drew a distinction between prenotice legal expenses (for which she did not hold Johnson liable) and postnotice legal expenses (for which she held Johnson liable). Absent plain language in the contract bifurcating Johnson's obligation of indemnity, we are of the opinion that its liability must rest solely on whether Massport's notice in the first instance was reasonable, namely whether it was fair and comported with the expectations of the parties in light of the object of the notice provision. [Note 3] We conclude it did not and the judgment must be reversed.
In light of our conclusion that Johnson has no obligation to indemnify Massport under the indemnification provision at issue, we need not discuss at length Johnson's argument that the indemnity provision is void because it violates G. L. c. 149, § 29C. We simply note that the provision is similar in content to the provision at issue in M. DeMatteo Constr. Co. v. A.C. Dellovade, Inc., 39 Mass. App. Ct. 1 , 3-4 (1995), which we held was valid and did not offend § 29C.
[Note 1] This is a third-party action. As described in the body of the opinion, the case began as a negligence claim brought by Sylvia S. Pierce, as administratrix of the estate of James Pierce, against the Massachusetts Port Authority and the Division of Capital Planning and Operations (Division).
[Note 2] General Laws c. 149, § 29C, as appearing in St. 1986, c. 557, § 135, provides in pertinent part as follows: "Any provision for or in connection with a contract for . . . maintenance work . . . which requires a subcontractor to indemnify any party for injury to persons or damage to property not caused by the subcontractor or its employees, agents or subcontractors, shall be void."
[Note 3] Unlike a contract for a liability insurance policy, no prejudice or harm was required to be shown to relieve Johnson from its obligations under the indemnity provision once the notice was considered not reasonable. Cheschi v. Boston Edison Co., 39 Mass. App. Ct. at 139-142.

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