Allied Steel and Conveyors, Inc. v. Ford Motor Co.

United States Court of Appeals for the Sixth Circuit277 F.2d 907 (1960)


Ford Motor Co. (Ford) (plaintiff) entered into a purchase agreement with Allied Steel and Conveyors, Inc. (Allied) (defendant) that required Allied to perform installation work at Ford’s premises. A July 26, 1956 amendment to the original agreement submitted by Ford to Allied seeking to order additional machinery contained a broad indemnification clause and stated that the agreement was not binding until acceptance, and that acceptance should be executed on an acknowledgment copy and returned to Ford. Allied executed the acknowledgment copy on November 10; however, Allied had already commenced installation of the additional machinery when an Allied employee, Hankins, was injured due to Ford employees’ negligence on September 5. Hankins sued Ford and Ford impleaded Allied seeking indemnification. Allied argued that the Amendment was not in effect at the time of Hankins’ injury because Allied had not yet accepted in the manner required by the amendment. At trial, judgment was entered for Hankins against Ford, and for Ford against Allied. Allied moved for judgment notwithstanding the verdict, but its motion was denied, and Allied appealed.

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