TX STATETexas Court of Appeals, 7th District (Amarillo)
2018

Oliver Communications Group, Inc. v. Schneider Electric Buildings Americas, Inc.

Texas Court of Appeals, 7th District (Amarillo) • Decided 2018Reversed

HOLDING

Oliver Communications was a subcontractor to Schneider Electric on a bridge security camera project. When an Oliver employee was injured on site, the property owner demanded indemnification from Schneider, who then demanded it from Oliver. The court ruled Oliver did not have to pay because the injury was caused solely by the property owner's negligence, not Oliver's work. This protects subcontractors from indemnifying clients for injuries the client caused themselves.

KEY FINDINGS

Broad Indemnification

Indemnity clauses don't require you to cover the other party's sole negligence—even if the contract language is broad. Courts will limit indemnity obligations to your own negligence.

Flow-Down

Don't automatically pay indemnity demands without reviewing who actually caused the injury. If the client/general contractor was solely at fault, you likely don't owe anything.

FULL COURT OPINION