WEAVER V. AMERICAN OIL CO.
257 Ind. 458 (1971)
NATURE OF THE CASE: In a declaratory judgment action filed by American (P), an oil
company and its employee, the trial court determined that D was liable for injuries
sustained on the premises under the provisions of the lease contract.
FACTS: Weaver (D) entered into a lease with American Oil (P) for a gas station. The lease
in a printed form contract had a hold harmless clause in it that obligated D to indemnify
American (P) for its negligent acts occurring on the leased premises. That particular clause
was never explained to D and there was no evidence that D had read the contract or was
otherwise aware of the clause. An employee of P negligently sprayed D and his assistant with
gasoline. Both D and his assistant were burned and injured on the leased premises. P sought
a declaratory judgment to determine liability to D's under the contract clause. D alleged
that the clause was unconscionable. The trial court held D liable. The appellate court
reversed. D appealed.
ISSUE:
RULE OF LAW:
HOLDING AND DECISION:
LEGAL ANALYSIS:
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