2013 Ohio 2323
Ohio Ct. App.2013Background
- Brown v. Gallagher involves a civil indemnity release from a 2002 crash settlement; the release indemnified Brown for claims against him arising from the collision.
- After the settlement, Brown pled guilty in a criminal case and was ordered to pay restitution to the Ross County Sheriff’s Department.
- Brown sought indemnification from Gallagher for the restitution under the Release of All Claims; the trial court dismissed for failure to state a claim.
- On appeal, the Fourth District previously found no public policy bars enforcement and remanded for merits consideration.
- On remand, the trial court dismissed again, holding Brown failed to give notice and to provide Gallagher an opportunity to defend per Globe Indemn. Co. v. Schmitt; Brown appeals the dismissal.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Whether Globe notice and defense requirements apply to restitution-based indemnity | Brown contends the release/indemnity clause controls and Globe does not bar enforcement | Gallagher argues Globe requirements were not satisfied (notice, defense, fairness) | No; Globe requirements unmet, dismissal affirmed |
Key Cases Cited
- Globe Indemn. Co. v. Schmitt, 142 Ohio St. 595 (1944) (sets notice, defense, and fairness prerequisites for indemnity in settlement context)
- Portsmouth Ins. Agency v. Medical Mutual of Ohio, 188 Ohio App.3d 111 (2009) (indemnity requires notice and opportunity to defend; contracts interpreted normally)
- Miller v. Rhoades, 20 Ohio St. 494 (1870) (judgment against indemnitor bound when creditor has notice and opportunity to defend)
- First Nat. Bank of Mt. Vernon v. First Nat. Bank of Lincoln, 68 Ohio St. 43 (1903) (extension of end-of-litigation doctrine to indemnity obligations)