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CC of Baltimore Co. v. Patient First Corp.
98 A.3d 1072
Md. Ct. Spec. App.
2014
Read the full case

Background

  • 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)
Read the full case

Case Details

Case Name: CC of Baltimore Co. v. Patient First Corp.
Court Name: Court of Special Appeals of Maryland
Date Published: Aug 29, 2014
Citation: 98 A.3d 1072
Docket Number: 0568/13
Court Abbreviation: Md. Ct. Spec. App.