Cham's Jewelry Art v. Haefner , 80 F. App'x 265 ( 2003 )


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  •                                                                                                                            Opinions of the United
    2003 Decisions                                                                                                             States Court of Appeals
    for the Third Circuit
    11-7-2003
    Chams Jewelry Art v. Haefner
    Precedential or Non-Precedential: Non-Precedential
    Docket No. 02-2911
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    Recommended Citation
    "Chams Jewelry Art v. Haefner" (2003). 2003 Decisions. Paper 128.
    http://digitalcommons.law.villanova.edu/thirdcircuit_2003/128
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    NOT PRECEDENTIAL
    IN THE UNITED STATES COURT OF APPEALS
    FOR THE THIRD CIRCUIT
    ___________
    No: 02-2911
    ___________
    CHAM'S JEWELRY ART;
    FASHION GEM JEWELRY,
    t/a
    Yang Company
    GEMS AND JEWELRY PALACE, INC.
    v.
    RICHARD C. HAEFNER, Individually;
    RICHARD C. HAEFNER,
    t/a
    Lost Dutchman Gembor,
    a/k/a
    10th Annual Lost Dutchman Gemboree;
    LEBANON VALLEY EXPOSITION, CORP.,
    a/k/a Lebanon Valley Expo. Corp.;
    LESTER F. RITTLE, Individually;
    LESTER F. RITTLE,
    t/a
    Lebanon County Auxillary Police;
    LEBANON COUNTY AUXILLARY POLICE
    Fashion Gem and Jewelry, Inc.;
    Gems and Jewelry Palace, Inc.
    Appellants
    ___________
    ON APPEAL FROM THE UNITED STATES DISTRICT COURT
    FOR THE MIDDLE DISTRICT OF PENNSYLVANIA
    (Civil Action No. 97-cv-00612)
    District Judge: The Honorable Yvette Kane
    ___________
    Submitted Pursuant to Third Circuit LAR 34.1(a)
    on November 7, 2003
    Before: McKEE, SMITH, and GREENBERG, Circuit Judges,
    (Filed: November 7, 2003)
    ___________
    OPINION OF THE COURT
    ___________
    SMITH, Circuit Judge
    I.
    Plaintiffs are three New York corporations which are vendors of gemstones and
    jewelry. Each rented space and sold their wares at the Tenth Annual Lost Dutchman
    Gemboree (“Gemboree”) in Lebanon, Pennsylvania on August 14-18, 1996. On August
    16, 1996, a portion of plaintiffs’ inventory was stolen. On the evening that the theft
    occurred, the organizer of the Gemboree, defendant Richard Haefner (“Haefner”) was
    certain that the windows and doors to the exposition center were closed and locked,
    because two employees of Lester Rittle’s (“Rittle”) security company had checked the
    building. Haefner had hired Rittle along with the Lebanon County Auxiliary Police
    (“Police”) to provide security at the event. One individual hired by Rittle provided
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    security during the night of August 16, 1996.
    Prior to renting space for the Gemboree, plaintiffs each signed an “Application for
    Dealer Space.” App. at S.A. 92a. The application included the following clause:
    LIABILITY. Neither management nor Lebanon Fair Grounds, nor any of
    their officers, agents, employees, or other representatives shall be held
    accountable or liable for and the same hereby releases from accountability
    or liability for any damage, loss, harm or injury to the person or any
    property of the dealer, or any of dealer’s officers, agents, employees or
    other representatives resulting from theft, fire, water, accident or any other
    cause, and neither management nor Lebanon Fair Grounds will obtain
    insurance against such damage, loss, harm or injury. Dealer agrees to carry
    liability insurance as a condition for participating in the show. The license
    herein granted is revocable at any time by management in the event a dealer
    shall violate this agreement. Dealer further agrees to indemnify, defend and
    protect management against and hold and save management harmless from
    any and all claims, demands, suits, liability, damages, loss, costs, attorney
    fees and expenses of whatever kind which might occur, including but not
    limited to claims of damages or loss to Lebanon Fair Grounds property, or
    out of any damage, loss, harm, or injury to the person or any property of the
    dealer or any of his officers, agents, employees or representatives.
    App. at S.A. 93a. The Application also provided for security arrangements:
    SECURITY. M anagement will provide security service 24 hours a day.
    Security will be in effect during the entire show and will cease at 8 pm on
    closing day. Dealer agrees to hold management and Lebanon Fair Grounds
    harmless for any loss, pilfering, theft or damage to dealer’s merchandise or
    other property from all causes whatsoever. Dealer agrees to provide
    adequate insurance for his own merchandise and other property; and agrees
    that failure to have such insurance constitutes a waiver of any claim against
    management or Lebanon Fair Grounds.
    Id. Plaintiffs procured no insurance against theft or loss. Additionally, the Application
    for Dealer Space qualified the acceptance of space, with the following clause:
    ACCEPTANCE OF APPLICATION FOR BOOTH SPACE. This contract
    3
    shall not become effective unless one copy of the application is signed by
    both the dealer and management, and the appropriate deposit is paid. There
    are no agreements, written or oral, by or between the parties pertaining to
    this contract, except those contained herein.
    Id.
    Subsequent to the theft, plaintiffs sought recovery from Haefner. Haefner filed
    cross claims against defendants, Lebanon Valley Exposition Corporation, as well as Rittle
    and the Police. The District Court granted summary judgment against plaintiffs on March
    30, 2001. The District Court determined that the parties were bound by the terms of their
    written agreement, which by its terms precluded any finding of liability against Haefner.
    Judgment was entered against plaintiffs the same day. Plaintiffs Fashion Gem Jewelry
    and Gems and Jewelry Palace filed a timely notice of appeal.
    II.
    The District Court had diversity jurisdiction under 
    28 U.S.C. § 1332
    . We have
    jurisdiction under 
    28 U.S.C. § 1291
    . We exercise plenary review over a District Court’s
    summary judgment determinations. Woodside v. School District of Philadelphia Bd. of
    Education, 
    248 F.3d 129
    , 130 (3d Cir. 2001); Sharrar v. Felsing, 
    128 F.3d 810
    , 817 (3d
    Cir. 1997). Summary judgment is appropriate “if the pleadings, depositions, answers to
    interrogatories, and admissions on file, together with the affidavits, if any, show that there
    is no genuine issue as to any material fact and that the moving party is entitled to a
    judgment as a matter of law.” Celotex Corp. v. Catrett, 
    477 U.S. 317
    , 321 (1986); Fed. R.
    Civ. Proc. 56(c).
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    III.
    The question before us is simply whether the language of the Dealer Space
    Applications is binding upon the parties. As plaintiffs correctly assert, it is the intent of
    the parties which should guide the court when interpreting contracts. Pl. Br. at 11;
    O’Farrell v. Steel City Piping Co., 
    403 A.2d 1319
    , 1324 (Pa. Super. 1979) (“In
    construing a contract, a court’s paramount consideration is the intent of the parties”).
    Defendant counters that the express terms of the written contract govern. Defendant is
    correct–only where a contract is ambiguous may the court look beyond the clear text of
    the contract. See, e.g., Mellon Bank, N.A. v. Aetna Business Credit, Inc., 
    619 F.2d 1001
    ,
    1009 (3d Cir. 1980). A contract is ambiguous when it is susceptible to more than one
    reasonable interpretation. Pacitti by Pacitti v. Macy’s, 
    193 F.3d 766
    , 773 (3d Cir. 1999).
    “[W]hen the words are clear and unambiguous the intent is to be discovered only from the
    express language of the agreement.” 
    Id. at 773
    .
    These contracts can be read in only one manner. Where the plaintiffs failed to
    obtain insurance for their merchandise, they would waive their rights to bring any claim
    against defendants. Plaintiffs failure here to purchase insurance coverage is fatal to their
    claims.
    We further agree with the District Court’s determination that the exculpatory
    clause here relieves Haefner and the other defendants of any liability. An exculpatory
    clause is enforceable where the “language of the parties is clear that a person is being
    5
    relieved of liability for his own acts of negligence.” Topp Copy Products, Inc. v.
    Singletary, 
    626 A.2d 98
    , 99 (Pa. 1993). Here, plaintiffs agreed to hold defendants
    harmless for “any loss . . . from all causes whatsoever.” App. at S.A. 93a, 95a. As the
    Pennsylvania Supreme Court explained in Cannon v. Bresch, 
    307 Pa. 31
    , 34 (Pa. 1932),
    It is clear that the term all is sufficient to encompass negligence. The terms are
    emphatic -- the word ‘all’ needs no definition; it includes everything, and excludes
    nothing. There is no more comprehensive word in the language, and as used here it
    is obviously broad enough to cover liability for negligence.
    Here, Haefner was released from “all” liability. We need look no further. For the
    foregoing reasons the judgment of the District Court will be affirmed.
    /s/ D. Brooks Smith
    Circuit Judge
    6