CC of Baltimore Co. v. Patient First Corp.
98 A.3d 1072
Md. Ct. Spec. App.2014Background
- CCBC and Patient First entered an Agreement for Clinical Program - Venipuncture, including a broad indemnification clause for negligent acts by CCBC or its students.
- A CCBC student phlebotomist stuck herself and contaminated a needle, drawing blood from a child; the child’s family later sued
- Patient First settled part of the Politis suit for $10,000 and sought indemnification and its defense costs from CCBC under §7.1
- CCBC refused to indemnify, arguing the contract did not cover Patient First’s own alleged negligence and would violate public policy
- The circuit court found CCBC breached by not indemnifying Patient First and awarded $87,097.08 in damages (settlement plus fees)
- On appeal, the Maryland Court of Special Appeals reviewed the indemnification scope, burden of proof, and the reasonableness of attorneys’ fees
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Whether CCBC must indemnify for Patient First’s defense costs | Patient First: indemnity applies to negligent acts of CCBC students and related defense costs | CCBC: no indemnification for its own alleged negligence and no clear contract language to cover defense costs | Yes; indemnification applies to Patient First’s defense costs |
| Who bears the burden to prove the indemnitee’s negligence | Patient First argues CCBC must prove Patient First’s negligence only if expert proof shows breach | CCBC argues the indemnitor need not prove indemnitee’s negligence and that public policy may bar indemnity for own negligence | Indemnitor bears burden to prove indemnitee’s negligence |
| Whether expert proof was required to show Patient First’s negligence to trigger indemnity | Politis allegations suffice to claim indemnity if supported by evidence of negligence | expert proof is required to establish professional negligence and breach of standard of care | Expert proof was needed to establish Patient First’s negligence; without it, indemnity applied to Ebaugh’s negligence |
| Whether the trial court properly awarded attorneys’ fees as indemnified costs | Fees were reasonable and were incurred defending the negligence action | Challenge to the reasonableness/competence of testimony supporting the fee award | Yes; the fees were reasonable and properly awarded |
Key Cases Cited
- Kreter v. Healthstar Communications, Inc., 172 Md. App. 243 (2007) (indemnity against own negligence requires unequivocal language)
- Crockett v. Crothers, 264 Md. 222 (1972) (contracts not construed to indemnify for own negligence without express terms)
- Heat & Power Corp. v. Air Products & Chemicals, Inc., 320 Md. 584 (1990) (absence of express indemnity against own negligence defeats coverage)
- Tesoro Petroleum Corp. v. Nabors Drilling USA, Inc., 106 S.W.3d 118 (Tex. App. 2002) (affirmative defense; indemnity determined by facts, not pleadings)
- Norddeutscher Lloyd v. Jones Stevedoring Co., 490 F.2d 648 (9th Cir. 1973) (indemnitor bears burden to prove indemnitee’s negligence)
- Schultz v. Bank of America N.A., 413 Md. 15 (2010) (negligence standard requires expert testimony unless obvious)
- Zachair Ltd. v. Driggs, 135 Md. App. 403 (2000) (lay opinion on reasonableness of fees admissible; contractual damages standard)
