Archive for the ‘Lease Agreement’ Category

Show’s Over – Indemnity Dispute Between State Fair and Equipment Lessor Regarding Collapsed Stage Continues (IN)

May 29, 2015

In re Indiana State Fair Litigation (Indiana)
(one Judge dissenting)

This case arises from a collapsed stage at a state fair in August of 2011, which caused several deaths and injuries.  The issue was whether the stage equipment supplier (Mid-America Sound [“Mid-America”]) was entitled to indemnification from the event operator (the Indiana State Fair Commission [“Commission”]) based on the terms and conditions of the typical course of business between them.

Dating back to the mid-1990s, the Commission leased temporary roof structures and other equipment from Mid-America to use for outdoor concerts on property operated by the Commission.  During the last ten years of their relationship, the parties followed the same procedure with regard to the equipment leasing.  Mid-America delivered the equipment before the event and then later returned to pick up the equipment after the event.  When it picked up the equipment, Mid-America would sign contracts for the rented items and submit the contracts to the Commission.  The Commission audited each contract to make sure it conformed to the agreement of the parties and then issued payment.

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Insurance Company “Cutz” Barbershop’s Defense

July 6, 2008

Scottsdale Insurance Company v. Cutz, LLC (Florida)
(Insurer Had No Duty to Defend Lessor of Premises in Negligent Security Lawsuit.)

In September 2003, two men were shot to death at a Cutz, LLC (Cutz) barbershop. Personal representatives of the deceased men brought suit against Cutz (the lessee) and G&G Laboratories (the lessor of the premises), seeking damages for wrongful death and negligence based upon a failure to provide security at the barbershop. Cutz was the named insured under an insurance policy issued by Scottsdale Insurance Company (Scottsdale). Both Cutz and G&G Laboratories (G&G) tendered their defense and requested indemnity from Scottsdale. Scottsdale sought a declaration from the Court that it was not responsible for G&G.

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A Challenging Course

June 28, 2007

Roman v. City of Bristol (Connecticut)
(Employee Injured While Using Rented Recreational Challenge Course Owned and Operated by the City; Employee Sued City and City Sued Employer Citing Indemnity Provisions in Rental Agreement; Court Found Issues of Fact Regarding Whether the Employer and the City Were Both Sophisticated Business Entities with Equal Bargaining Power Such That the Indemnity Provisions Should Be Enforced)

An employer signed a rental agreement with the city that included the rental fee and the date and time for use of a recreational challenge course owned by and located in the city.  An employee of the employer was injured while using the course and she brought a personal injury action against both the city and the city’s course instructor who was present at the time of the incident.  The city then filed a third party lawsuit against the employer for breach of contract and indemnification.  The city alleged that the employer breached the rental agreement by (1) not holding them harmless, (2) not providing them with a legal defense, and (3) failing to secure and maintain an adequate and proper liability insurance policy.  The employer filed a motion for summary judgment arguing that it was not obligated to indemnify the city under the contract for the city’s own alleged negligent conduct.  The trial court granted the employer’s motion, and the city appealed. 

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The Wrong “Approach”

June 26, 2007

Robinson v. Kroger (Georgia)
(Woman Falls Due to Hole in Parking Lot and Sues Grocery Store; Court Finds Store Not Liable for Parking Lot Area Under Lease Agreement and Applicable Statute)

Plaintiff had gone to the bank inside the defendant Kroger grocery store, and she was walking back to her car when the accident occurred. Plaintiff stepped over a concrete bumper in the parking space next to the space in which she had parked. the bumper obscured a hole in the pavement, and when plaintiff stepped over it, her foot went into the hole and she fell to the ground.

Plaintiff sued Kroger, and Kroger filed a motion for summary judgment contending that it was responsible only for the leased premises and approaches to the store. Kroger pointed out that its lease does not extend to the parking lot, which is designated a “Common Area” for the use of all the tenants and their customers. Further, Kroger stated that it was the landlord’s responsibility to maintain those common areas. The trial court ruled in favor of Kroger, and the plaintiff appealed.

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