Alameda Tank Co. v. Starkist Foods, Inc.

Opinion

KINGSLEY, Acting P. J.

In 1976 Navario Ayala, and his wife Virginia, sued Alameda Tank Company (Alameda) alleging that, while in the employ of Starkist Foods (Starkist), he was seriously injured because his arm was caught in an unguarded sprocket wheel of a conveyor system, manufactured by Alameda for Starkist. Alameda answered, denying liability and filed a cross-complaint against Starkist, seeking indemnification.

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Starkist’s demurrer to the fourth amended cross-complaint was sustained; Alameda stood on its pleading and an order of dismissal followed from which Alameda has appealed; we affirm.

The parties apparently agree that the absence of a security guard violated applicable safety orders and that Ayala is entitled to worker’s compensation from Starkist for his injuries. Alameda’s position is that it entered into an oral contract

2

with Starkist to manufacture the conveyor system according to written plans provided by Starkist, that those plans did not include any safety guard, and that Starkist had agreed to

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install the system as manufactured by Alameda, providing any and all necessary auxiliary and safety equipment. Alameda’s case is set forth in eight causes of action in its fourth amended cross-complaint: (1) for breach of contract; (2) for breach of express and implied warranties; (3) for implied equitable indemnity; (4) for fraud; (5) for negligent misrepresentation; (6) for equitable estoppel; (7) for waiver; and (8) for declaratory relief.

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I

The arguments in the trial court, and in the briefs here, center primarily on the demurrer to the third cause of action—the one for implied indemnity. The demurrer to that cause of action was sustained, and is supported here by Starkist, on the theory that it is barred by section 3864 of the Labor Code, which reads as follows: “If an action as provided in this chapter prosecuted by the employee, the employer, or both jointly against the third person results in judgment against such third person, or settlement by such third person, the employer shall have no liability to reimburse or hold such third person harmless on such judgment or settlement in absence of a written agreement so to do executed prior to the injury.”