Maxim Crane Works, L.P. v. Tilbury Constructors

208 Cal. App. 4th 286 (2012)

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Maxim Crane Works, L.P. v. Tilbury Constructors

California Court of Appeal
208 Cal. App. 4th 286 (2012)

Facts

Maxim Crane Works, L.P. (Maxim) (plaintiff), a Pennsylvania company, contracted with Tilbury Constructors (Tilbury) (defendant) to provide a crane and operator to a California construction site managed by Tilbury. In the contract, Tilbury agreed to indemnify Maxim for claims related to the contract, and the contract also contained a choice-of-law provision applying Pennsylvania law. On the day that the contract was signed, Steven Gorksi, a Tilbury employee, was injured at the construction site. Gorksi sought workers’-compensation benefits from Tilbury, but he was barred from filing a tort suit against Tilbury under workers’-compensation laws. Instead, Gorksi sued Maxim for negligent operation of the crane in California state court. Maxim filed a cross-complaint against Tilbury seeking indemnification. After settling with Gorksi, Maxim proceeded to trial against Tilbury on the cross-complaint. Tilbury argued that because Pennsylvania law applied to the contract, Tilbury could not be liable to Maxim. Tilbury argued that because a Pennsylvania statute provided that an injured worker’s employer can only be liable to a third-party tortfeasor under a written contract executed before the date of the worker’s injury, and the contract between Tilbury and Maxim was signed on the same day as Gorski’s injury, Maxim’s claim against Tilbury was barred under Pennsylvania law. Maxim then argued that the choice-of-law provision was unenforceable because of California’s strong public policy to ensure compensation of injured California workers. The trial court held that Pennsylvania law applied, and Maxim appealed.

Rule of Law

Issue

Holding and Reasoning (Duarte, J.)

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