Redfern v. R. E. Dailey & Co., 146 Mich. App. 8

Summary

The Michigan Court of Appeals addressed whether a construction-related contractual indemnity agreement required Midwest Mechanical Contractors to indemnify Union Carbide for liability arising from an employee's death during warranty repair work. The court held that the agreement was not void on its face under Michigan's prohibition against indemnification for an indemnitee's sole negligence, particularly because Union Carbide was found not negligent. The court affirmed Union Carbide's right to indemnification and attorney fees but remanded for findings concerning the reasonableness of the fees.

Holdings

1. The indemnity agreement was not void on its face. Although Michigan law invalidates indemnification for an indemnitee's sole negligence in covered construction agreements, the agreement could be applied consistently with public policy where Union Carbide was found not negligent and indemnification was sought for liability connected with the work.
2. Union Carbide was entitled to contractual indemnification because its liability for Redfern's death fell within the express terms of the indemnity agreement and the trial court found that Union Carbide was not negligent.
3. The indemnity agreement's coverage of 'all claims, liabilities, losses, damages and expenses of every character whatsoever' included attorney fees and expenses incurred by Union Carbide in defending the underlying action.
4. The attorney-fee award could not be reviewed because the trial court failed to make findings of fact and conclusions of law concerning the reasonableness of the fees; the matter had to be remanded for further proceedings.

Questions Presented

1. Whether the indemnity agreement was void in its entirety under MCL 691.991 because it could be construed to indemnify Union Carbide for its sole negligence.
2. Whether Union Carbide was entitled to contractual indemnification where it was found not negligent and its liability arose from settlement rather than a finding or admission of negligence.
3. Whether the indemnity agreement authorized Union Carbide to recover attorney fees and expenses incurred in defending the underlying wrongful-death action.
4. Whether the attorney-fee award required remand because the trial court failed to make findings regarding reasonableness and awarded an incorrect total.

Disposition

reversed_and_remanded