Court Opinion

ID: 9612557
Source: CourtListenerOpinion
Date Created: 2023-08-22 04:09:53.082107+00
Date Added: 2024-06-11T18:03:21.905087
License: Public Domain

RANSOM, Justice (dissenting). Guitard v. Gulf Oil Co., 100 N.M. 358, 670 P.2d 969 (Ct.App.), cert. denied, 100 N.M. 327, 670 P.2d 581 (1983), holds that, under Section 56-7-2(A), an indemnification agreement is only void and unenforceable as to liability for indemnitee’s own percentage of negligence. This statutory construction furthers freedom to contract for indemnification from vicarious or secondary liability where common law indemnification would be thwarted by special circumstances, e.g., the exclusivity of liability under the Worker’s Compensation Act. See Royal Indem. Co. v. Southern Cal. Petroleum Corp., 67 N.M. 137, 353 P.2d 358 (1960) (third-party claim denied against employer for negligent breach of contract or implied agreement for indemnification); City of Artesia v. Carter, 94 N.M. 311, 610 P.2d 198 (Ct.App.), cert. denied, 94 N.M. 628, 614 P.2d 545 (1980) (third-party claim not denied against employer where based on an express contract of indemnification). The rationale of Guitard is equally applicable to this case, in which Section 56-7-1 should be read to mean that an indemnification agreement is void and unenforceable as to liability for indemnitee’s own percentage of negligence arising out of (A) the preparation of certain documents by the indemnitee or (B) the giving of or the failure to give directions or instructions by the indemnitee. If the provisions for excluding (A) and (B) are present, liability for injury or damage arising out of indemnitee’s negligence in other activities may be indemnified. If the provisions are not present, the agreement is void and unenforceable as to any negligence of indemnitee. In either event, the parties are not precluded by the statute from contracting for indemnification for vicarious or secondary liability of an indemnitee resulting from acts or omissions of an indemnitor. Absent vicarious or secondary liability, the indemnitee would have no liability for the indemnitor’s percentage of negligence. Bartlett v. New Mexico Welding Supply, Inc., 98 N.M. 152, 646 P.2d 579 (Ct.App.), cert. denied, 98 N.M. 336, 648 P.2d 794 (1982). In its third-party complaint, indemnitee sought to be indemnified by indemnitor for damages assessed against indemnitee as a result of indemnitor’s negligence or breach of contract. Following Guitard, the contract’s indemnification provision should be held to apply to damages assessed against indemnitee as a result not of its own but of indemnitor’s negligence. I dissent from the majority opinion and would reverse the trial court’s order of dismissal for failure to state a claim.