Anthony White v. Quechee Lakes Landowners' Association v. Helo Factories, Ltd.

Wrongful Death - Indemnification - Quechee Lakes owns and operates a health club for the recreational use
of its members. The club maintains saunas within its men's and women's
locker room facilities. Helo manufactured the heating unit and control
panel used in the women's sauna, but was not involved in designing or
constructing the sauna itself. In 1973, before ownership of the resort was
transferred to the Quechee Lakes Landowners' Association, the developer
hired an independent contractor to construct the sauna. Quechee Lakes
operated and maintained the sauna without incident until February 1, 1994,
when Elizabeth White was found lying unconscious on the floor of the
sauna. She died several days later as the result of irreversible
hyperthermia, leaving behind her husband and three young children.

Anthony White filed two wrongful death actions, one against Quechee
Lakes in the superior court in January 1995, and the other against Helo in
federal court approximately one year later. The federal case eventually
settled. In the state court action, Mr. White alleged that Quechee Lakes
failed to implement necessary safeguards concerning use of the women's
sauna, including screening users, monitoring use, posting an adequate
warning sign, and adding an automatic shutoff device, a timer, a clock, a
thermometer, and a window in the sauna door. He also alleged that a
Quechee Lakes employee negligently turned up the heat while his wife was in
the sauna, without first checking to see if anyone was inside.

In turn, Quechee Lakes filed a third-party complaint against Helo, but
the parties agreed to sever that complaint and postpone its resolution
pending the outcome of the underlying action, which was contested in an
eight-day trial in October 1997.

Following the close of evidence in that
trial, but before the case was submitted to the jury, the parties reached a
$450,000 settlement agreement. The agreement explicitly reserved Quechee
Lakes's right to seek indemnification from Helo, stating that the
settlement was not for any active or independent negligence on Quechee
Lakes's part.

Unknown

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Affirmed by the Supreme Court of Vermont. See: ___ Vt. ___ (9-24-1999)___ A.2d ___. Note: The above date reflects the appellate court decision date, not the original trial date. Reported by kkm.