Court Opinion

ID: 9561301
Source: CourtListenerOpinion
Date Created: 2023-08-21 18:06:45.110098+00
Date Added: 2024-06-11T09:13:42.927302
License: Public Domain

RABINOWITZ, Chief Justice,
concurring.
Here the Borough contracted with Roen (a design firm) for the preparation of an environmental assessment, feasibility study, survey and design of roads, and plans for the Cripple Creek II subdivision. As part of these contracts it was provided that:
The Contractor shall save, hold harmless and indemnify the Borough from any liability, claims, suits or demands, including costs, expenses and reasonable attorney’s fees, incurred for or on account of injuries or damages to persons or property as a result of any act or omission if the Contractor in the performances pursuant to this contract.
[Emphasis added.]
I cannot agree with the court’s holding that the “injuries or damages to persons or property” language limits this indemnification clause to claims and liability based on physical injury or damage to persons or tangible property, and thus does not apply in this case. The wording of the indemnity clause in no way indicates that the parties intended to limit its application to physical damage to tangible property. In light of the fact that the Borough contracted for professional engineering services, the indemnity clause reasonably construed reflects the parties’ intent to include economic loss.1

.' Inherent in my position is my further disagreement with the court’s conclusion that "common usage" of the phrase "injuries or damages to property” denotes physical damage to tangible property. Neither Golden Valley Elec. Ass’n v. Revel, 719 P.2d 263 (Alaska 1986) nor Kodiak Elec. Ass’n v. DeLaval Turbine, 694 P.2d 150, 156 n. 9 (Alaska 1984) is dispositive of the question. In all other respects I am in agreement with the court’s opinion.