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Starr v. Union Pacific Railroad Co.8/29/2003
Affirmed in part, reversed in part, and remanded with directions.
Archer Daniels Midland Corporation (ADM) appeals the district court's grant of summary judgment in favor of Union Pacific Railroad Company (UP) on its claims that ADM should indemnify UP pursuant to contract for one half of the cost of a personal injury settlement with a railroad employee, James Starr, who was injured on ADM property. ADM also appeals the district court's award of one half of ADM's attorney fees and costs incurred in defending Starr's claims. UP cross-appeals, claiming indemnity for all amounts paid as well as all attorney fees and costs. We affirm in part,reverse in part, and remand for trial of disputed factual issues.
Factual Overview
In July 1962, the predecessors of UP and ADM executed a sidetrack agreement (Agreement) generally governing the rights and obligations of the parties in providing rail services to an elevator facility in Wolcott, Kansas. The Agreement contained indemnity provisions that are the basis for the contract claims herein.
Starr, a conductor employed by UP, was working between the tracks on ADM property on August 27, 1998. In order to avoid a pool of rainwater that had collected during rainstorms that night, Starr stepped onto a ballast (the gravel walkway between tracks), slipped and fell, and injured his knee.
Starr filed a claim pursuant to the Federal Employer's Liability Act (FELA), see 45 U.S.C. ยง 51 et seq. (2000), against UP for his injury. He later joined ADM as a defendant.
Starr settled with UP for $425,000 on March 1, 2001, and dismissed his claims against UP and ADM with prejudice. Remaining were cross-claims of both UP and ADM based on the Agreement. Both UP and ADM filed motions for summary judgment. The district court construed the Agreement and determined that UP was entitled to indemnity from ADM for one half of the settlement amount and one half of the attorney fees and costs incurred in defending Starr's claim, for a total judgment of $230,400.
ADM and UP appeal the district court's decision.
Standard of Review
On appeal of summary judgment, we apply the same rules applicable in the district court, and where we find reasonable minds could differ as to the conclusions drawn from the evidence, summary judgment must be reversed. Mitchell v. City of Wichita, 270 Kan. 56, 59, 12 P.3d 402 (2000). To the extent that this appeal frames issues of contract interpretation, our review is unlimited. Regardless of the construction given a written contract by the district court, an appellate court may construe a written contract and determine its legal effect. Alexander v. Everhart, 27 Kan. App. 2d 897, 901, 7 P.3d 1282, rev. denied 270 Kan. 897 (2000). The issue of whether a contract is ambiguous is also a matter of law, and our review is unlimited. Investcorp, L.P. v. Simpson Investment Co., L.C., 267 Kan. 840, 847, 983 P.2d 265 (1999).
Did the District Court Err in Concluding that the Agreement was not Ambiguous as to "the Switch" and that the Plaintiff was Injured Within the Area Described by the Agreement?
ADM initially claims that the Agreement was ambiguous in describing the area where indemnification is triggered for injuries to railroad employees and that UP's inability to show that the incident occurred within the contemplated area was fatal to its claim for indemnity. The issue is whether the incident occurred on or about "the Switch" as defined by the Agreement.
Paragraph 1 of the Agreement states:
"1. Shipper shall be served by two certain proposed tracks, Track 'A' and Track 'B', 2330 feet long and 1945 feet l
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