Aerospace Dynamics v. Frize
Aerospace Dynamics International, Inc. (ADI) contracted with Frize Corporation (Frize) to paint a building. Frize subcontracted the work to J. C. French. Edwin Limber Mendoza, Jr., an employee of J. C. French, sustained injuries while on the painting job and sued ADI and Frize. ADI settled with Mendoza, Jr. in his personal injury action by waiving the issue of liability and referring the damages question to a retired judge. After a trial, the referee found that Mendoza, Jr. had sustained $2.7 million in damages. ADI assigned its indemnity claim against Frize to Mendoza, Jr. and made a refundable cash payment of $350,000 to him in exchange for a covenant not to execute on any sums above that amount.
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