Board of Trustees, Community College of Baltimore County v. Patient First Corp.
120 A.3d 124
Md.2015Background
- CCBC and Patient First entered into an indemnification agreement; 7.1 obligates CCBC to indemnify Patient First for losses arising from CCBC venipuncture students' negligence, including reasonable fees, while 7.2 requires Patient First to indemnify CCBC for its own negligence.
- A CCBC intern negligently attempted a blood draw from a six-year-old at Patient First, nicked herself, used the same needle on the child, and later the intern tested positive for Hepatitis C.
- The Politis lawsuit was filed against Patient First and the CCBC intern, culminating in a $50,000 settlement funded partly by insurance and Patient First.
- Patient First sued CCBC to enforce indemnification for its settlement payment of $10,000 and related defense costs totaling $78,937.39.
- The circuit court found in favor of Patient First, holding CCBC liable for indemnification based on the intern’s negligence, and CCBC appealed.
- The Maryland Court of Appeals remanded for consideration of the reasonableness of the attorneys’ fee award due to redacted billing detail.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Whether the presumption against indemnifying own negligence applies | Patient First contends presumption not needed; contract clearly covers student negligence. | CCBC argues presumption governs unless contract expressly covers indemnitee’s own negligence. | Presumption unnecessary; contract clearly bars indemnifying Patient First’s own negligence. |
| What liability the indemnification provision covers | Indemnifies liability arising from CCBC student negligence via respondeat superior. | Indemnification limited to student-negligence liability; does not include Patient First’s own negligence. | 7.1 covers student-negligence liability; 7.2 covers Patient First’s own negligence; no indemnity for Patient First’s own negligence. |
| Allocation of burdens of proof in enforcement action | Plaintiff bears proof of contract existence, student negligence, liability, and payment; CCBC bears affirmative defense. | Plaintiff should prove non-negligence of Patient First to qualify for indemnification. | Circuit Court correctly placed CCBC’s burden to prove Patient First’s negligence; burden-shifting defenses are improper. |
| Sufficiency of evidence on Patient First's fee award | Redacted billing details should still support reasonableness; counsel testified fees were reasonable. | Redacted billing descriptions render the fee award unsupported; insufficient evidence of reasonableness. | Fee award not affirmable on current record; remand for further consideration of reasonableness with adequate billing detail. |
Key Cases Cited
- Crockett v. Crothers, 264 Md. 222 (1972) (indemnitor bears burden where contract requires it; professional presumption applies)
- Mass Transit Admin. v. CSX Transp., Inc., 349 Md. 299 (1998) (indemnification clause expressed in unequivocal terms governs)
- Kreter v. HealthSTAR Communications, Inc., 172 Md. App. 243 (2007) (indemnification presumption not applied when contract expresses intent)
- Kruvant v. Dickerman, 18 Md. App. 1 (1973) (burden of production and persuasion on affirmative defenses)