Sansone v. Morton Mach. Works, Inc.

• Decision Date: 21 October 2008
• Docket Number: No. 2006-163-Appeal.,No. 2005-72-Appeal.,2005-72-Appeal.,2006-163-Appeal.
• Citation: 957 A.2d 386
• Parties: Joseph SANSONE v. MORTON MACHINE WORKS, INC., et al. Morton Machine Works, Inc. v. Bristol Yarn Corp. et al.
• Court: Rhode Island Supreme Court

957 A.2d 386

Joseph SANSONE v. MORTON MACHINE WORKS, INC., et al.

Morton Machine Works, Inc. v. Bristol Yarn Corp. et al.

No. 2005-72-Appeal.

No. 2006-163-Appeal.

Supreme Court of Rhode Island.

October 21, 2008.

James Oswald, Providence, for Plaintiff.

Michael DeLuca, Providence, for Defendant.

Present: WILLIAMS, C.J., GOLDBERG, FLAHERTY, SUTTELL, and ROBINSON, JJ.

OPINION

Chief Justice WILLIAMS, for the Court.

The defendant/third-party plaintiff, Morton Machine Works, Inc. (Morton), appeals from the Superior Court's grant of a motion for summary judgment in favor of the third-party defendants, Robin Rug, Inc. (Robin) and Bristol Yarn Corp. (Bristol Yarn) (collectively third-party defendants), and the denial of Morton's cross-motion for summary judgment. Morton also appeals from the Superior Court's denial of its motion to vacate the entry of final judgment. We additionally address the filing of Morton's second third-party complaint against Bristol Yarn. For the reasons hereinafter set forth, we affirm the orders of the Superior Court with respect to the motions for summary judgment and the motion to vacate, but vacate the order granting Morton's second third-party complaint.

I Facts and Travel

On July 20, 1998, plaintiff, Joseph Sansone (plaintiff), suffered severe personal injuries when operating a raw stock dyeing machine while working as an employee of Robin, a rug manufacturing facility in Bristol, Rhode Island. A raw stock dyeing machine (dyeing machine or machine) consists of two separate tanks, a main kier and an expansion tank, connected together by a series of pipes. The plaintiff allegedly was injured by a spray of an acidic mixture propelled from the expansion tank. Robin's workers' compensation carrier paid plaintiff benefits in accordance with the existing policy.

The dyeing machine was manufactured by Morton in 1969, but purchased in used condition by Bristol Yarn from the Frank G.W. McKittrick Company, Inc. (McKittrick), in 1989. Six years before plaintiff's accident, in 1992, Robin contracted with Morton to service the dyeing machine; specifically, Morton replaced the triple safety lock system and the locking ring on the main kier component of the machine and "all necessary switches, valves, relays, and parts." Morton provided a quotation for the service and sale of this equipment, which included an indemnification provision.

The plaintiff brought suit against Morton and McKittrick, alleging breach of warranty, negligent design, and strict products liability.¹ Morton, however, subsequently filed a third-party complaint against Robin² and Bristol Yarn, seeking "contractual indemnity and/or contribution."

The third-party defendants moved to dismiss Morton's third-party complaint pursuant to Rule 12(b)(6) of the Superior Court Rules of Civil Procedure on July 18, 2003. Because plaintiff had been paid workers' compensation benefits on behalf of his employer, Robin's, insurance carrier, the third-party defendants argued that G.L. 1956 § 28-29-20 of the Workers' Compensation Act barred Morton's claim for contribution against Robin. As for Bristol Yarn, the joint memorandum to support third-party defendants' motion to dismiss represented that it was Robin who had purchased the dyeing machine and that Bristol Yarn operates a separate business from Robin "at a separate location." Therefore, they submitted, the lack of any connection among Bristol Yarn, plaintiff, and Morton barred any claim for contribution against Bristol Yarn. The third-party defendants further argued that Morton's prayer for contractual indemnity should be dismissed because of an absence of any contract between Morton and themselves.

Morton conceded that the contribution claim should be dismissed as a matter of law, but objected to the dismissal of its contractual indemnification claim, based upon the existence of certain language in the quotation that it had provided to Robin when it replaced the triple safety lock system in 1992. Pursuant to an order entered on August 27, 2003, the motion justice granted in part and denied in part third-party defendants' motion to dismiss; she dismissed Morton's contribution claim against both Robin and Bristol Yarn while declining to dismiss its claim for contractual indemnification.

Morton, however, later propounded interrogatories to Bristol Yarn, which included questions about whether Bristol Yarn had ever owned the dyeing machine; its possession, use, and repair history of the machine; and its relationship with Robin. On October 21, 2003, both Robin and Bristol Yarn provided joint answers to Morton's interrogatories, revealing that not only had Bristol Yarn in fact purchased the dyeing machine from McKittrick in 1989, but also continued to own it. Moreover, third-party defendants admitted that the two "share [a] common ownership and are affiliated companies," are located at the same address, and share the same corporate officers and directors. Indeed, an exhibit attached to McKittrick's answers to Morton's interrogatories, dated October 30, 2003, corroborated this information: McKittrick had sold the dyeing machine to Bristol Yarn in 1989. Morton, however, failed to act upon this information.

Thereafter, on June 1, 2004, third-party defendants filed a motion for summary judgment on Morton's remaining claim— contractual indemnification. Morton objected and cross-moved for summary judgment. By orders entered on October 1 and 7, 2004, a second motion justice granted third-party defendants' motion and denied Morton's cross-motion, finding that the indemnification provision of the quotation covered only injuries relating to the triple safety lock system, not the entire machine, and that no genuine issue of material fact existed disputing the allegation that plaintiff's injuries were caused by a malfunction on the expansion tank. The third-party defendants thereafter moved for an entry of final judgment pursuant to Rule 54(b) of the Superior Court Rules of Civil Procedure. The motion justice granted this motion and entered an order to that effect on December 10, 2004. Six days later, Morton filed a notice of appeal from that judgment.

On May 11, 2005, however, while the appeal was pending with this Court, Morton filed a motion in Superior Court to vacate the judgment against Bristol Yarn on the contribution claim, pursuant to Rule 60(b) of the Superior Court Rules of Civil Procedure. Morton argued that it had conceded dismissal of its contribution claim only because it was under the mistaken belief, based on third-party defendants' representations, that Robin owned the dyeing machine that allegedly caused plaintiff's injury. Morton, therefore, argued that the final judgment entered on December 10, 2004, should have been vacated because of "mistake, inadvertence, surprise, or excusable neglect," under Rule 60(b)(1); fraud, misrepresentation, or "other misconduct of an adverse party," under Rule 60(b)(3); or for "any other reason justifying relief," under Rule 60(b)(6).

Acknowledging the appeal already pending in this Court, a third motion justice denied Morton's motion without prejudice. At Morton's request, however, we remanded the case to the Superior Court on September 22, 2005, for the specific purpose of allowing that court to hold a hearing on the motion to vacate. A renewed motion to vacate was denied by a fourth motion justice on the grounds that Morton did not file its Rule 60(b) motion within a reasonable time. Morton filed a timely appeal. We consolidated the two appeals on September 18, 2007.

After the case was remanded for the particular purpose of conducting a hearing on the motion to vacate, and before the case returned to this Court, Morton moved the Superior Court for leave to file a second third-party complaint against Bristol Yarn, this time alleging equitable indemnification. No objection having been filed, a fifth motion justice granted Morton's motion by rule of court, based on Rule 7(b)(3) of the Superior Court Rules of Civil Procedure. The third-party defendants answered the complaint with a Rule 12(b)(6) motion to dismiss. The Superior Court never heard this motion, and the papers were returned to this Court. At conference, we directed the parties to brief this issue for consideration.

II Analysis

On appeal, Morton argues that the second motion justice erred in denying its cross-motion for summary judgment on the contractual indemnity claim and in granting third-party defendants' cross-motion with respect to the same. Morton contends that the motion justice applied an unduly narrow interpretation to the language of the indemnification contract between Morton and third-party defendants. Moreover, Morton argues, based upon what it submits is the proper interpretation of the indemnification provision, there exists a genuine issue of material fact as to whether plaintiff was injured by the triple safety lock system, requiring reversal of the motion justice's granting of third-party defendants' motion for summary judgment.

Secondly, Morton argues that the fourth motion justice abused her discretion when she denied Morton's motion to vacate on the grounds that it was filed unreasonably late, in contravention of Rule 60(b). Specifically, Morton contends that its delay was reasonable given the circumstances; the time of its filing having been caused by the inaccurate representations of third-party defendants.

Thirdly, concerning Morton's second third-party complaint, Morton argues that the Superior Court has subject-matter jurisdiction over that complaint and that the complaint should survive third-party defendants' motion to dismiss, which was filed, but has not yet been heard by the Superior Court.

A Contractual Indemnity

We first address the motion justice's granting of third-party defendants' motion for summary judgment on Morton's contractual indemnification claim and his denial of Morton's cross-motion for the same.

Morton's claim for contractual...