Sierra Pacific Properties v. Otis Elevator CA1/5

BACKGROUND

A.

Amy Zapotoczny was badly injured while riding in an elevator that suddenly malfunctioned. Sierra owned the building with the faulty elevator.

Undesignated statutory references are to the Civil Code. 1 In 2005, Sierra contracted with Otis to modernize the building’s three elevators (the modernization contract).

The modernization contract included the following indemnity clause: “[Otis] shall indemnify and hold harmless [Sierra] . . . from all . . . claims . . . brought for, or on account of, any actual or alleged personal injury, . . . arising out of, the negligent performance of the work by [Otis] . . . or the materials used in such work of performance, including all attorney’s fees . . . and to pay all costs, expenses, attorneys’ fees . . . attributable to such defense and should [Sierra] bring any suit or action or cross-complaint to compel performance of, or to recover for breach of, any covenant or condition contained herein . . . [Otis] shall pay to [Sierra] the reasonable attorney’s fees incurred by [Sierra] therein . . . .” It further states, “It is understood and agreed that [Otis] shall have no obligation to defend any claim, suit or proceeding which…