Kingston v. Markward & Karafilis, Inc.

350 N.W.2d 842 (1984)

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Kingston v. Markward & Karafilis, Inc.

Michigan Court of Appeals
350 N.W.2d 842 (1984)

  • Written by Tammy Boggs, JD

Facts

In February 1969, W.J.C. Kaufmann Construction Company (Kaufmann) (defendant) agreed to build some metal plates for Chrysler Corporation. The metal plates would cover an oil reservoir on Chrysler’s property. The parties’ agreement contained an indemnification provision in which Kaufmann would indemnify Chrysler for any property damage or personal injury related to Kaufmann’s work, such as injury to a Chrysler employee. Thereafter, Chrysler entered an agreement with Markward & Karafilis, Inc. (Markward) (defendant) for Markward to construct an addition to a building. Kaufmann’s metal plates would be a substructure of the addition. Chrysler informed Kaufmann that Chrysler was assigning the metal-plate contract to Markward, and Kaufmann acknowledged the assignment. All construction work was completed. Years later, Charles Kingston (plaintiff), an employee of Chrysler, died in connection with an incident involving the metal-plate covers. Kingston’s estate sued Markward and Kaufmann, who filed third-party actions again Chrysler for indemnification. Chrysler tendered its defense to Kaufmann. Among other claims, Markward argued that it was entitled to indemnity from Kaufmann because Markward was the assignee of the Kaufmann-Chrysler contract. A jury found that Kingston was entitled to $3 million in damages against Markward and Kaufmann and that Markward was entitled to indemnity from Kaufmann. On appeal, Kaufmann argued that the assignment of the indemnity clause was void.

Rule of Law

Issue

Holding and Reasoning (Shepherd, J.)

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