Board of Trustees, Community College of Baltimore County v. Patient First Corp.

120 A.3d 124, 444 Md. 452, 2015 Md. LEXIS 564
CourtCourt of Appeals of Maryland
DecidedAugust 18, 2015
Docket89/14
StatusPublished
Cited by24 cases

This text of 120 A.3d 124 (Board of Trustees, Community College of Baltimore County v. Patient First Corp.) is published on Counsel Stack Legal Research, covering Court of Appeals of Maryland primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Board of Trustees, Community College of Baltimore County v. Patient First Corp., 120 A.3d 124, 444 Md. 452, 2015 Md. LEXIS 564 (Md. 2015).

Opinion

McDonald, J.

In an indemnification provision of a contract, one .party agrees to reimburse the other party for a liability, loss, or *459 damage that the other party might incur. 1 This case concerns the application of an indemnification provision in an agreement between a community college and a medical facility under which student medical technicians gained useful experience doing blood draws at the facility. The college agreed to indemnify the facility for any liability that the facility might incur (including attorneys’ fees) arising from a negligent act or omission of a student.

As a result of an unfortunate incident involving a failed blood draw by a student, the facility paid money to settle a lawsuit and incurred attorneys’ fees. The community college contested its obligation to indemnify the facility for the settlement payment and attorneys’ fees, asserting that the liability arose from the facility’s own negligence. After a bench trial, the Circuit Court decided in favor of the facility.

We hold that: (1) the medical facility had the burden of proving its entitlement to indemnification — i.e., the existence of the indemnification agreement, negligent conduct of a student at the facility, its payment of money in settlement and for attorneys’ fees, and the failure of the college to indemnify it; (2) the college had the burden of proving, as an affirmative defense, that the facility itself was negligent and that the liability arose from that negligence; and (3) the trial court was not clearly erroneous in concluding that the facility bore its burden, but the college did not. We remand for further consideration of the reasonableness of the attorneys’ fee award.

I

Background

The Agreement between CCBC and Patient First

Among the programs offered by Petitioner Community College of Baltimore County (“CCBC”) is training for a Phleboto *460 my Technician Certification. 2 In connection with that program, CCBC entered into arrangements with local hospitals and medical providers in the Baltimore area to permit its students to obtain clinical experience at those facilities. The terms of the arrangement were incorporated in a written agreement drafted by CCBC entitled “Community College of Baltimore County — Agreement for Clinical Program — Venipuncture” (the “Agreement”). The Agreement was to be executed by representatives of CCBC and the particular facility, referred to in the agreement as the Provider.

The Agreement provided that CCBC and the Provider agreed to establish a “supervised clinical experience for the Venipuncture Students” at the Provider’s facilities. It then set forth various “rights and responsibilities” of CCBC and the Provider with respect to the program, the term of the Agreement, and various other general provisions. Pertinent to this case, the Agreement included a section on indemnification, which reads, in pertinent part:

7. INDEMNIFICATION
7.1 [CCBC] will defend, indemnify and hold the Provider harmless from any and all losses, claims, liabilities, damages, costs and expenses (including reasonable attorneys’ fees) which arise out of the negligent acts or omissions of [CCBC], its agents, employees or Venipuncture Students in connection with this Agreement. ...
It is further understood and agreed that [CCBC] is not waiving or relinquishing in any manner any defenses that may be available to [CCBC] including, but not limited to, government sovereign immunity or breach of contract or otherwise, nor is [CCBC] relinquishing any defenses that may become available to it at any time during the term of this Agreement, but that [CCBC] is *461 free to assert all defenses that may be available to it at law or in equity.
7.2 The Provider will defend, indemnify and hold the Program harmless for any and all losses, claims, liabilities, damages, costs and expenses (including reasonable attorneys’ fees) which arise out of the negligent acts or omissions of the Provider, its agents or employees in connection with this Agreement or by any breach or default in the performance of the obligations of the Provider.

In September 2003, CCBC entered into the Agreement with Respondent Patient First Corporation (“Patient First”). 3 Patient First is a provider of preventative, primary, and urgent care services at medical centers throughout the mid-Atlantic area, including several located in the Baltimore area.

The Blood Draw

In January 2007, as part of the CCBC program and pursuant to the Agreement between CCBC and Patient First, a CCBC student worked as a student phlebotomist at Patient First’s medical center in Perry Hall, Maryland. At the end of her first week at the facility, the CCBC intern attempted to draw blood from Dimitris Politis, a six-year old patient. At the time of the attempted blood draw, the treating physician who had ordered the blood draw had left the examining room and only the child’s mother and grandmother were present. The CCBC intern accidentally nicked herself with a needle and then used the same needle to attempt, unsuccessfully, to draw blood from the child. The treating physician, who was also the medical director for the facility, later discovered what had happened and ordered that the CCBC intern be tested for infectious diseases. The CCBC intern subsequently tested *462 positive for Hepatitis C. The child was tested for a year, but did not test positive for Hepatitis C.

The Politis Negligence Action

In December 2009, the child’s mother, Susan Politis, filed a complaint against Patient First, its affiliates, and the CCBC intern in the Circuit Court for Baltimore County. The complaint consisted of three counts alleging negligence on the part of the CCBC intern and Patient First and sought $5 million in damages as to each count. The specific allegations of negligence largely concerned the actions of the CCBC intern. 4 The complaint also alleged that the CCBC intern acted as “an actual and/or apparent agent, servant, and employee of’ Patient First and that she “was not supervised at the time she negligently attempted a blood draw from the minor Plaintiff.” The complaint alleged that the defendants collectively acted negligently in failing to utilize appropriate safeguards or procedures to protect the plaintiffs from injury or contaminated blood.

On January 26, 2010, Patient First’s General Counsel sent a letter to CCBC asserting that CCBC was obligated to defend and indemnify Patient First for any liability with respect to the Politis lawsuit pursuant to paragraph 7.1 of the Agreement between CCBC and Patient First. CCBC responded by referring Patient First to CCBC’s counsel. CCBC denied that it *463 was obligated to defend or indemnify Patient First.

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Bluebook (online)
120 A.3d 124, 444 Md. 452, 2015 Md. LEXIS 564, Counsel Stack Legal Research, https://law.counselstack.com/opinion/board-of-trustees-community-college-of-baltimore-county-v-patient-first-md-2015.