Weaver v. American Oil Co.

276 N.E.2d 144 (1971)

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Weaver v. American Oil Co.

Indiana Supreme Court
276 N.E.2d 144 (1971)

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Facts

American Oil Co. (American) (plaintiff) presented Weaver (defendant), who operated a gas station, a contract for the lease of the premises containing a “hold harmless” clause, which provided that Weaver would hold harmless and also indemnify American for any damages or losses resulting from American's negligence occurring on the leased premises. Weaver neither read the lease nor consulted a lawyer about the lease, and American never encouraged Weaver to read the lease. American’s employee subsequently sprayed oil on Weaver and his associate while repairing a pump at the gas station, causing Weaver and the associate to suffer burns and other injuries. American brought an action seeking a declaratory judgment on the issue of liability under the lease. The trial court entered a judgment holding Weaver liable under the hold-harmless clause, and the appellate court affirmed. Weaver appealed to the Indiana Supreme Court.

Rule of Law

Issue

Holding and Reasoning (Arterburn, C. J.)

Dissent (Prentice, J.)

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