OTIS ELEVATOR v. HARDIN CONSTRUCTION
9/19/1994
Hardin Construction was a general contractor for the Palmetto Center in Columbia. Otis Elevator was Hardin Construction's elevator subcontractor. While Otis Elevator completed installation of the elevators, it permitted Hardin Construction to use one of the elevators on a temporary basis to transport people and materials. The parties executed a "Temporary Acceptance Agreement" regarding the use of the elevator. The Temporary Acceptance Agreement reads in part,
[Hardin Construction] . . . assume complete responsibility for any
accident to persons or property, howsoever caused, and will indemnify and
save [Otis Elevator] harmless against all loss, damage, claims, liability
or expenses arising therefrom, except such loss, damage, claims,
liability or expense as may be occasioned by [Otis Elevator's] acts or
omissions.
Under the terms of the Temporary Acceptance Agreement, Hardin Construction also agreed to "provide a competent operator" for the elevator.
A special key was required to operate the elevator. Otis Elevator gave the key to Hardin Construction. Although Hardin Construction was not supposed to give the key to its subcontractors, one of Hardin Construction's security guards gave it to a carpeting subcontractor, Michael Baldwin Smith. Using the key, Smith opened the doors to the elevator, stepped through the open doors into what he mistakenly believed was the elevator, fell approximately 20 feet down the elevator shaft, and landed on concrete pylons at the bottom of the shaft. Smith sustained serious injuries as a result of the fall.
Smith brought suit against Otis Elevator alleging negligence, strict liability, and breach of warranties. Otis Elevator sent a letter to Hardin Construction notifying it of Smith's claim and requesting it to defend and indemnify Otis Elevator. Hardin Construction refused.
After a twelve-day trial, the jury deliberated for four hours, at which point Otis Elevator agreed to settle Smith's claim for $892,000. Otis Elevator thereafter brought the instant action against Hardin Construction for indemnification.
In the action for indemnification, the jury returned a verdict against Hardin Construction for $892,000, the amount of the settlement paid by Otis Elevator to Smith. In response to a special interrogatory, the jury found no act or omission of Otis Elevator caused Smith's injuries. Pursuant to Hardin Construction's post-trial motion, the trial court reduced the jury's verdict against Hardin Construction to $250,000 to offset the amount paid to Smith by Otis Elevator's insurer, Liberty Mutual Insurance Company.
I. Hardin Construction's Appeal
A.
Hardin Construction first argues Otis Elevator was not entitled to indemnity under the terms of the Temporary Acceptance Agreement because "the only basis of Smith's claims were . . . the alleged acts and omissions of
Although Smith, among other things, alleged Otis Elevator was negligent in "failing to provide an attendant or someone to oversee the use of the elevator," the evidence in this action indicates Hardin Construction, not Otis Elevator, had the duty, under the parties' Temporary Acceptance Agreement, to "provide a competent operator" for the elevator at the time Smith attempted to use it and Hardin Construction failed to provide one.
Otis Elevator, therefore, is entitled to indemnity from Hardin Construction. See id. at 523-24, 397 S.E.2d at 380 (" f the wrongful act of the defendant has involved the plaintiff in litigation with others or placed him in such relation with others as makes it necessary to incur expenses to protect his interest, such expenses shou
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