Beacon Mutual Insurance v. Spino Bros., Inc.
11 A.3d 645
| R.I. | 2011Background
- DePasquale was the general contractor; Spino Bros. was its masonry subcontractor on a City project.
- A lead mason from Spino Bros. died on the job, prompting litigation by the deceased’s widow against DePasquale.
- DePasquale sought indemnification from Spino Bros. for amounts paid to the widow; the indemnification claim was severed and later tried to juries with findings that neither party was negligent.
- Rhode Island Supreme Court in Rodrigues held Spino Bros. owed indemnification to DePasquale for money paid to the widow, even if DePasquale was not negligent, but voided the portion requiring Spino Bros. to indemnify for DePasquale’s own negligence.
- Beacon Mutual Insurance, Spino Bros.’ insurer, filed a declaratory-judgment action seeking to avoid indemnification coverage under its policy’s contractual-liability exclusion.
- The Superior Court granted summary judgment for Beacon; the Rhode Island Supreme Court affirms, applying contract-interpretation and policy-interpretation principles.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Whether Spino Bros. is contractually liable to DePasquale for indemnification. | Beacon argues indemnity rights arise from the contract; Rodrigues controls. | Spino Bros. contends the jury’s non-negligence finding negates indemnity. | Spino Bros. liable under contract; Rodrigues controls. |
| Whether Beacon must indemnify Spino Bros. under the policy. | Beacon contends the policy excludes contractual-liability indemnification. | Spino Bros. argues exclusion does not apply because no direct contractual liability to DePasquale. | Policy exclusion bars coverage; Beacon entitled to declaratory judgment. |
Key Cases Cited
- Rodrigues v. DePasquale Building and Realty Co., 926 A.2d 616 (R.I. 2007) (indemnification duty survives despite non-negligence findings)
- Lynch v. Spirit Rent-A-Car, Inc., 965 A.2d 417 (R.I. 2009) (contractual-interpretation standards for policy construction)
- Irene Realty Corp. v. Travelers Property Casualty Co. of America, 973 A.2d 1118 (R.I. 2009) (contract interpretation de novo review for ambiguity)
- Zarrella v. Minnesota Mutual Life Insurance Co., 824 A.2d 1249 (R.I. 2003) (contract interpretation framework for insurance disputes)
- International Brotherhood of Police Officers v. City of East Providence, 989 A.2d 106 (R.I. 2010) (de novo review of contract interpretation within policy context)