Opinion ID: 2437952
Heading Depth: 1
Heading Rank: 3

Heading: the indemnity agreement

Text: The indemnity agreement provides as follows: [Christie] assumes entire responsibility and liability for any claim or actions based on or arising out of injuries, including death, to persons or damages to or destruction of property, sustained or alleged to have been sustained in connection with or to have arisen out of or incidental to the performance of this contract by [Christie], its agents and employees, and its subcontractors, their agents and employees, regardless of whether such claims or actions are founded in whole or in part upon alleged negligence of [Enserch], [Enserch's] representative, or the employees, agents, invitees, or licensees thereof. [Christie] further agrees to indemnify and hold harmless [Enserch] and its representatives, and the employees, agents, invitees and licensees thereof in respect of any such matters and agrees to defend any claim or suit or action brought against [Enserch], [Enserch's] representative, and employees, agents, invitees, and licensees thereof.... Enserch contends that the trial court properly granted its summary judgment motion because Christie had a duty to indemnify Enserch. Enserch reasons that the indemnity agreement contained an express assumption of liability which complied with article 8306, section 3(d) of the Texas Workers' Compensation Act. The Texas Workers' Compensation Bar The Texas Workers' Compensation Act provides that a subscribing employer has no liability to reimburse or hold another person harmless for a judgment or settlement resulting from injury or death of an employee in the absence of a written agreement expressly assuming such liability. TEX.REV.CIV.STAT.ANN. art. 8306, § 3(d) (Vernon Supp.1989) (emphasis added). This provision, commonly referred to as the Texas Workers' Compensation Bar, prohibits indemnity in a workers' compensation context unless one party expressly agrees to indemnify the other in writing. Therefore, Christie is not bound to indemnify Enserch unless the Christie-Enserch agreement is sufficient to overcome this bar. Our specific question focuses on whether the term persons in the indemnity provision includes Christie's employees. The court of appeals held that the contract does not clearly state that Christie assumes liability for injuries to Christie's employees; rather, it only addresses Christie's liability for injuries to persons caused by Christie and its employees. The court of appeals observed that this language is similar to that held inadequate to overcome the workers' compensation bar in Port Royal Dev. v. Braselton Constr. Co., 716 S.W.2d 630, 632 (Tex.App.-Corpus Christi 1986, writ ref'd n.r.e.). There the subcontractor agreed to indemnify the contractor from liability for or on account of injury to or death of person or persons ... occurring by reason of or arising out of the act or [negligence] of SUBCONTRACTOR... except the act or [negligence] of the CONTRACTOR, in connection with performance of this Contract. (Emphasis added.) This agreement expressly stated that the subcontractor would not indemnify the contractor for the contractor's own negligence. The indemnity provision in the instant case contains no such limiting language. Enserch asserts that the indemnity language in its contract with Christie is consistent with that in Verson Allsteel Press Co. v. Carrier Corp., 718 S.W.2d 300 (Tex. App.-Tyler 1985, writ ref'd n.r.e.), in which similar language was held sufficient to overcome the workers' compensation bar. The indemnity language there read: [Carrier] ... covenants to indemnify and hold harmless Verson ... from and against any and all loss, damage, expense, claims, suits or liability which Verson or any of its employees may sustain or incur ... for or by reason of any injury to or death of any person or persons or damage to any property, arising out of ... any claimed inadequate or insufficient safeguards or safety devices. Id. at 301 (emphasis added). The trial court granted Carrier's motion for summary judgment on the ground that Verson's claim for indemnity was barred by article 8306, section 3(d) in that the contract language did not expressly assume liability as required by the Texas Workers' Compensation Act. The Verson court of appeals reversed, however, and held that section 3(d) did not require that an indemnity agreement include language which specifically referred to the indemnitor's employees. Instead, the court of appeals observed that the intent of the parties is to be gleaned from examining all provisions of the contract in light of the circumstances surrounding its execution, and concluded that the indemnity language above constituted an express written agreement by Carrier to indemnify Verson for a successful claim by a Carrier employee. Therefore, the indemnity language was held sufficient to overcome the workers' compensation bar. As in Verson, the indemnity language in the contract between Enserch and Christie is sufficient to show that Christie expressly assumed liability for injuries to its own employees. Accordingly, the Texas Workers' Compensation Act does not bar Enserch's claim for indemnity.