This Court granted certiorari to the Court of Appeals in Ryder Integrated Logistics, Inc.. v. BellSouth Telecommunications, Inc. , 277 Ga. App. 679 627 SE2d 358 2006, to examine the determination by the Court of Appeals that the insurance provision of the contract that Ryder Integrated Logistics, Inc. “Ryder” had with BellSouth Telecommunications, Inc. “BellSouth” obligated Ryder to compensate BellSouth for a claim that exceeded a $1,000,000 insurance policy that Ryder had secured. Finding that the Court of Appeals incorrectly held that Ryder was liable to BellSouth for damages due to BellSouth’s sole negligence, we reverse. Under a contract with BellSouth, Ryder supplied certain transportation and logistical services to BellSouth. Ray, a Ryder employee, was working for Ryder at a BellSouth facility when he was injured. Ray and his wife sued BellSouth for negligence and BellSouth tendered the defense of the suit to Ryder and Old Republic Insurance Company “Republic”, Ryder’s insurer. Ryder and Republic refused to defend or indemnify BellSouth, and BellSouth filed a third-party complaint against them. The contract between Ryder and BellSouth contained an insurance provision, which stipulated that Ryder would maintain at least $1,000,000 of commercial general liability insurance “CGL”, and required that BellSouth be named as an additional insured on the policy; the Rays subsequently settled their claims with BellSouth for an amount over $1,000,000, but less than $6,000,000, which was the amount of an excess liability policy that Ryder secured from Republic.
The contract also contained a provision dealing with indemnity, which stated: Ryder agrees to indemnify and hold BellSouth harmless from any and all liabilities, causes of action, lawsuits, penalties, claims or demands . . . that may be made by: 1. Anyone for injuries of any kind . . . resulting from Ryder’s negligent or willful acts or omissions or those of persons furnished by Ryder, its agents or subcontractors, or resulting from the use of Ryder’s Services, material, or software furnished hereunder or resulting from Ryder’s failure to perform its obligations hereunder; 2. Any of . . . Ryder’s . . . employees . . . for which Ryder’s . . . liability to such employee . . . would otherwise be subject to payments under the state Worker’s Compensation laws or . . . premises liability principles. . . . Ryder, at its own expense, shall defend BellSouth, at BellSouth’s request, against any such liability, cause of action, penalty, claim, demand . . . or lawsuit, including any in which BellSouth is named as an “employer” or “joint employer” with Ryder. BellSouth shall notify Ryder promptly of any written claims or demands against BellSouth for which Ryder is responsible hereunder. In Division 1 of its opinion, the Court of Appeals noted that the Rays’ claim was based on BellSouth’s sole negligence, and correctly held that the indemnity provision was thus unenforceable.1 Ryder Integrated Logistics , supra at 681-683.
