Harold S. McDaniel v. Anheuser-Busch, Inc., Third Party v. Force Corporation, Third Party
987 F.2d 298 | Court of Appeals for the Third Circuit | 1993
What This Case Means for Subcontractors
A worker was injured at a railyard and sued the facility owner (Anheuser-Busch). Anheuser tried to make a contractor (Force) pay for the injury through an indemnification clause in their service contract. The court ruled that the indemnification clause only required Force to pay for injuries caused by Force's actions or omissions. Since the injured worker was found to be 100% responsible for his own injury, Force owed nothing. This matters to subcontractors because it shows that indemnification clauses with "caused by" language won't force you to pay for injuries you didn't cause.
Key Takeaways
- •Indemnification clauses that say you must cover injuries 'caused by' your work only apply when your actions actually caused the injury. If the injured party is found solely at fault, you don't have to pay.
- •Make sure your indemnification language is narrow and tied to your actual work. Broad language that covers injuries you didn't cause puts you at financial risk.
- •Document and preserve evidence showing you were not the cause of any injury. A finding that someone else caused their own injury can protect you from indemnification claims.
Injuries caused by Force's acts or omissions are prerequisite to indemnification.
Frequently Asked Question
Do I have to pay for an injury under my indemnification clause if I didn't cause it?
No, if the indemnification clause requires you to cover injuries 'caused by' your work, you only pay if your actions actually caused the injury. If the injured person is found to be the sole cause of their own injury, you have no obligation to pay under that clause.
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