1:14-cv-00403
W.D. Mich.Oct 27, 2016Background
- Plaintiffs sued Chad Curtis and Lakewood Public Schools (and related defendants) alleging sexual assaults by Curtis and Title IX/failure-to-train claims against the Lakewood Defendants. Curtis was criminally convicted of multiple sexual assault counts in 2013.
- Lakewood Defendants filed a third-party claim seeking indemnification from Professional Contract Management, Inc. (PCMI) under a 2010 contract supplying substitute teachers and other staff.
- The PCMI–Lakewood contract includes a broad indemnity clause requiring PCMI to indemnify the District for liabilities arising from negligence or wrongful acts of PCMI or persons for whom PCMI is responsible.
- The same contract contains an express carve-out: the indemnity does not apply to liability resulting from the sole negligence, wrongful act, or breach by the District or its employees or agents.
- Plaintiffs’ Title IX claims impose liability only for the recipient’s (Lakewood’s) deliberate indifference or failure to correct known discrimination — not vicarious liability for Curtis’s misconduct.
- Magistrate Judge Carmody recommends granting PCMI’s motion for summary judgment because the alleged liability against Lakewood arises from the District’s own wrongful acts/omissions, which the contract expressly excludes from PCMI’s indemnity obligation.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Whether PCMI must indemnify Lakewood for claims arising from Curtis’s conduct | Lakewood seeks indemnity for any judgment arising from Curtis’s conduct | PCMI contends the indemnity does not cover liability that results from Lakewood’s own wrongful acts or sole negligence | Indemnity not required because alleged Title IX/failure-to-train liability stems from Lakewood’s own conduct, excluded by contract |
| Whether Title IX liability here is vicarious (based on Curtis’s acts) or based on Lakewood’s response | Plaintiffs seek recovery tied to Curtis’s sexual misconduct | Defendants/PCMI argue Title IX liability requires deliberate indifference by school officials, not respondeat superior | Court treats Title IX liability as based on recipient’s deliberate indifference; liability is for Lakewood’s response, not Curtis’s acts |
| Whether the contract’s "sole negligence" exclusion bars indemnity for these claims | Lakewood argues indemnity applies broadly to liabilities related to PCMI employees | PCMI points to clause excluding indemnity for liability resulting from sole negligence/wrongful acts of the District or its agents | The exclusion applies; it defeats Lakewood’s claim for indemnity under the contract |
| Whether summary judgment is appropriate on the indemnity claim | Lakewood relies on contractual promise and seeks factual disputes for trial | PCMI moves showing no genuine issue of material fact that indemnity is excluded by contract terms | Summary judgment recommended for PCMI because Lakewood cannot show entitlement where contract exclusion governs |
Key Cases Cited
- Cannon v. University of Chicago, 441 U.S. 677 (1979) (recognized implied private right of action under Title IX)
- Franklin v. Gwinnett County Public Schools, 503 U.S. 60 (1992) (sexual harassment actionable under Title IX; monetary damages available)
- Gebser v. Lago Vista Indep. School Dist., 524 U.S. 274 (1998) (Title IX damages require actual notice to an official with authority and deliberate indifference)
- Davis v. Monroe County Bd. of Educ., 526 U.S. 629 (1999) (school liable only for its own failure to act; harassment itself does not automatically create recipient liability)
- Celotex Corp. v. Catrett, 477 U.S. 317 (1986) (summary judgment standard when movant shows absence of evidence)
- Amini v. Oberlin College, 440 F.3d 350 (6th Cir. 2006) (nonmoving party must identify specific facts showing a genuine issue for trial)
- Minadeo v. ICI Paints, 398 F.3d 751 (6th Cir. 2005) (summary judgment burdens where respondent lacks evidence)
- Ellis v. Cleveland Mun. School Dist., 455 F.3d 690 (6th Cir. 2006) (failure-to-train claims require showing injury caused by policy or custom)
