Southern Counties Gas Co. v. Ventura Pipeline Construction Co.

Since May of 1949, pursuant to a series of so-called master contracts, defendant has installed underground utility pipelines for use by plaintiff in the transmission of natural gas. However, contrary to a specification in the contract to that effect, defendant in several instances failed to apply protective coating or wrapping, thus hastening the process of corrosion. Commencing in July of 1967, gas leaks were reported at several locations; investigation revealed that they were caused by corrosion due to the above coating or wrapping deficiency. Immediate repairs were made on each occasion by plaintiff’s employees, and defendant thereafter refused plaintiff’s demand that it be indemnified for, and held harmless from, the cost of such repairs. Plaintiff by its complaint then sought reimbursement for the cost of such repairs ($1,026.30) and a declaratory judgment determining the respective rights and duties of each party under the series of contracts. The trial court ordered reimbursement of the sums expended, as prayed, and also declared the rights of the parties under the several agreements pursuant to plaintiff’s additional prayer.

The principal question on defendant’s…