Service Sign Erectors Co. v. Allied Outdoor Advertising, Inc.
Plaintiff Service Sign, a subcontractor, initiated an action for damages in breach of contract or quantum meruit against Allied, the defendant and third-party plaintiff, after a billboard Allied had contracted to build for the Authority collapsed due to insufficient support. Allied subsequently filed a third-party action against the Authority, seeking indemnification. The Supreme Court initially granted dismissal of the first cause of action in the third-party complaint but denied dismissal for the second and third causes of action. On appeal, the higher court modified this decision, ruling that implied indemnification was not available to Allied. The court found that the existing contract between Allied and the Authority explicitly provided for one-way indemnification from Allied to the Authority, thereby precluding any reciprocal implied obligation. Consequently, the appellate court granted the dismissal of all three causes of action in Allied's third-party complaint against the Authority, affirming the modification without costs.