Opinion ID: 2407473
Heading Depth: 1
Heading Rank: 6

Heading: The Question of Indemnity

Text: One final matter must be discussed. Mrs. Wood originally sued not only Otis, but also the department store owner, the Cox Company, and the building contractor, the Smith Building Company. Otis filed a cross-action against Cox for indemnity on the basis of a contract between Otis and Cox that required Cox to furnish proper framed openings for the escalator. Before trial, Mrs. Wood gave Cox and Smith a covenant not to sue, and they were nonsuited. Otis argues that since Cox failed to provide proper framed openings for the escalator in accordance with their contract, Otis is entitled to indemnity from Cox; that Mrs. Wood cut off this right of indemnity by giving Cox a covenant not to sue, and that therefore Mrs. Wood should not recover judgment from Otis for any amount. As it relates to this matter, the jury found that Cox did not fail to provide proper framed openings for the escalator, and that the responsibility in this regard was that of Otis. We have upheld those findings. Otis now contends that as a matter of law Cox failed to provide the proper framed openings in accordance with the contract. We disagree. The only evidence offered in support of Otis' contention is a provision in its contract with Cox that Cox was To provide suitable floor openings, properly framed and finished in accordance with our drawings, and to provide in place all permanent enclosures, shutters, railings and smoke baffles for the escalator well that may be required by law. [Emphasis added.] This provision created a fact issue regarding the suitability of the work furnished by Cox. The jury found that Cox had not failed to furnish proper framed openings, and we hold that the evidence presents an issue upon which reasonable men could differ. The judgments of the trial court and the Court of Civil Appeals are affirmed.