People Ex Rel. Department of Public Works v. Daly City Scavenger Co.

This case presents two questions: First, whether an express contract of indemnity necessarily negates the assertion of a right to implied equitable indemnity; and second, if not, whether the indemnity claimant in the instant case is entitled to such indemnity as a matter of law.

The State of California (“State”) appeals from a judgment in declaratory relief denying its claim for recovery of indemnity from Daly City Scavenger Company (“Company”). Neither party disputes the findings of fact, which may be summarized as follows:

In 1957, State closed a portion of the Old Coast Highway, located in San Mateo County to general public travel by placing hinged fence gates at two points labeled Stations 255 + 08 (southerly) and 362 + 70 (northerly). State owned all real property on which the highway was located; Company owned real property adjacent to and along both sides of the highway north and south of the southerly fence gate.

In order to provide Company with access to its property located within the barricaded highway, State and Company entered into a written agreement dated February 24, 1960. Said agreement provided for Company to receive keys to the gate locks, but for…