Lee v. Allied Chemical Corp.

Decision Date12 April 1976
Docket NumberNo. 10662,10662
Citation331 So.2d 608
PartiesJoe LEE v. ALLIED CHEMICAL CORPORATION et al.
CourtCourt of Appeal of Louisiana — District of US

Frank M. Coates, Jr., and A. Michael Dufilho, Baton Rouge, with him, for third partyplaintiffs-appellants.

Paul H. Spaht, Baton Rouge, for plaintiff-appellee.

William C. Kaufman, III, Baton Rouge, for third party defendants-appellees.

Before LANDRY, COVINGTON and PONDER, JJ.

PONDER, Judge.

Third party plaintiffs, J. S. Hadaway, W. P. Chamberlain, J. Herb Lowery, H. D. Howard, A. L. Austen, Red Roberts, John Shelton and The Travelers Indemnity Company, appeal the dismissal on a motion for summary judgment their claim for indemnity against National Maintenance Corporation and Fireman's Fund Insurance Company.

National Maintenance Corporation had a contract with Allied Chemical Company, the pertient provisions of which read as follows:

'5.01 During the performance of the work covered by this contract, (NATIONAL MAINTENANCE) shall carry the following insurance:

b) (2) Comprehensive General Liability Insurance with limits of not less than $250,000 per person and $500,000 per occurrence for bodily injury, and $500,000 per occurrence for property damage, including Contractor's Protective Coverage and Blanket Contractural Coverage, including, but not limited to, the provisions of (P)aragraph 9.01(b) of Article IX hereof.'

'6.02 CONTRACTOR'S FEES--In addition to the payments by ALLIED CHEMICAL to CONTRACTOR set forth in paragraph 6.01 above, ALLIED CHEMICAL shall pay to CONTRACTOR for its services in the performance of the work covered by this agreement the following:

a) a fee which shall be determined as the sum of the figures arrived at by multiplying the percentages shown below by the total monthly wage and salary costs (defined in item a), paragraph 6.01 Reimbursable Direct Costs--Cost of Work) falling in the corresponding wage and salary bracket(s).

                 Total Monthly Wages   Percentage for
                  and Salaries ($)     Each Step (%)
                ---------------------  --------------
                        0    - 50,000       20.5
                   50,001    - 75,000       20.0
                   75,001   - 100,000       19.5
                  100,001   - 125,000       19.0
                    Over 125,000            19.0
                

The above fee shall include compensation to CONTRACTOR for: F.I.C.A. taxes at 4.2% Rate, Louisiana State Unemployment Insurance at 2.7% Rate, Federal Unemployment Insurance at 0.4% Rate, CONTRACTOR'S insurance coverage as required by Article V--Insurance herein, small tools of a proper kind and in sufficient numbers including power suits with a new replacement cost up to and including $300 per unit (specialty tools costing less than $300 but available only from plant equipment vendors excepted), CONTRACTOR'S home office general and administrative expenses (includes salaries of CONTRACTOR'S personnel above superintendent not directly assigned to this work) and profit.

It is understood that the above fee is based on CONTRACTOR'S prevailing rates for all taxes and insurance. If any changes that are beyond CONTRACTOR'S control occur in these rates, the above percentage fees will be adjusted upward or downward, as required by the exact amount of the change(s).'

'9.01 (NATIONAL MAINTENANCE) shall be responsible for and shall indemnify, exonerate and save harmless ALLIED CHEMICAL, its officers, agents and employees, from and against:

b) Any and all liability, damage, loss cost, expense, claims, demands, suits, actions, judgments, or recoveries for or on account of any injury to or death of persons or damage to property, including, but not by way of limitation, damage to property of (NATIONAL MAINTENANCE), ALLIED CHEMICAL or others, or injury, death of, or damage to property of ALLIED CHEMICAL or (NATIONAL MAINTENANCE)'s officers, agents, employees, servants or representatives, arising out of or in any way occurring directly or indirectly in connection with the work, including, without limitation, delegable or nondelegable duties imposed on (NATIONAL MAINTENANCE) or ALLIED CHEMICAL by law, Whether or not any such injury, death, or damage may have been caused or alleged to have been caused by the negligence (whether classified as active, passive or otherwise) of ALLIED CHEMICAL, or the condition of the premises or otherwise,

And (NATIONAL MAINTENANCE) shall at its own expense defend any and all actions based thereon. Any loss, damage, cost or expense incurred by ALLIED CHEMICAL in connection with the foregoing may be deducted from (NATIONAL MAINTENANCE's) compensation them due or thereafter to become due, in addition to any other remedy that ALLIED CHEMICAL may have.

'9.02 Anything to the contrary notwithstanding, CONTRACTOR'S liability under this Article IX shall not include the risks to be insured against by ALLIED CHEMICAL which are set forth in Sections 5 .04 and 5.05 of Article V insofar as any loss is covered by such insurance.' (emphasis added)

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10 cases
  • Quaternary Res. Investigations, LLC v. Phillips
    • United States
    • Court of Appeal of Louisiana — District of US
    • 19 Noviembre 2020
    ...include salaries of a contractor's personnel above superintendent not directly assigned to the work. See Lee v. Allied Chemical Corp., 331 So.2d 608, 609 (La. App. 1 Cir. 1976), writ denied, 337 So.2d 525 (La. 1976). QRI is not entitled to recovery of G&A expenses, and I would likewise amen......
  • Center Tp. of Porter County v. City of Valparaiso
    • United States
    • Indiana Appellate Court
    • 21 Mayo 1981
    ...portion of any meaning or significance. Bland v. L'Enfant Plaza North, Inc. (1972 D.D.Cir.) 473 F.2d 156; Lee v. Allied Chemical Corporation (1976) La.App., 331 So.2d 608. See also : Indemnity Insurance Co. v. Koontz-Wagner Electric Co. (1955 N.D. Ind.) 131 F.Supp. 432; Westinghouse Electri......
  • Polozola v. Garlock, Inc.
    • United States
    • Louisiana Supreme Court
    • 28 Febrero 1977
    ... ... Corporation, an industrial maintenance contractor, on November 4, 1970 contracted with Dow Chemical Company to maintain Dow's production facilities at its plant in Plaquemine, Louisiana. Dow also ... 1976). Noting that its decision was inconsistent with Lee v. Allied Chemical Corp., 331 So.2d 608 (La.App.1st Cir.), Cert. denied, 337 So.2d 525 (La.1976) ('judgment ... ...
  • Dowling v. Georgia Pacific, LLC, Civil Action No. 02-637.
    • United States
    • U.S. District Court — Middle District of Louisiana
    • 9 Enero 2008
    ...intention was expressed in unequivocal terms." Polozola v. Garlock, Inc., 343 So.2d 1000, 1003 (La.1977), citing Lee v. Allied Chemical Corp., 331 So.2d 608 (La. App. 1st Cir.), cert, denied, 337 So.2d 525 (La.1976). In Polozola, the Louisiana Supreme Court found the contract required Garlo......
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