C.J. Mahan Const. v. Mohawk Re-Bar, Unpublished Decision (10-11-2005)

2005 Ohio 5427
CourtOhio Court of Appeals
DecidedOctober 11, 2005
DocketNo. 2004CA00387.
StatusUnpublished
Cited by2 cases

This text of 2005 Ohio 5427 (C.J. Mahan Const. v. Mohawk Re-Bar, Unpublished Decision (10-11-2005)) is published on Counsel Stack Legal Research, covering Ohio Court of Appeals primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
C.J. Mahan Const. v. Mohawk Re-Bar, Unpublished Decision (10-11-2005), 2005 Ohio 5427 (Ohio Ct. App. 2005).

Opinion

OPINION
{¶ 1} Plaintiff-appellant/cross-appellee C.J. Mahan Construction Co. appeals the November 19, 2004 Judgment Entry of the Stark County Court of Common Pleas granting summary judgment in favor of defendant-appellee/cross-appellant Mohawk Re-Bar Services, Inc.

STATEMENT OF THE FACTS AND CASE
{¶ 2} Appellant C.J. Mahan Construction Company (hereinafter "Mahan") acted as the general contractor on a bridge reconstruction project located on Route 62 and Interstate 77 in the City of Canton. Mahan entered into a subcontract agreement with appellee Mohawk Re-Bar Services, Inc. (hereinafter "Mohawk"). Pursuant to the terms of the subcontract agreement, Mohawk was to supply and install rebar for the construction project. The agreement stated Mahan would provide a crane and crane operator for Mohawk's use in performing its work.

{¶ 3} Paragraph 9 of the subcontract agreement requires Mohawk purchase and maintain workers' compensation coverage and liability coverage. Mahan required Mohawk to obtain comprehensive general liability, automobile liability, excess liability and Ohio stop gap insurance. Mahan also required Mohawk provide Mahan with an Additional Insured Endorsement ISO Form CG-20 10(11-85) or CG-20 26(11-85) under the comprehensive general liability policy where Mahan is named as an additional insured.

{¶ 4} Mohawk purchased a commercial general liability policy and commercial umbrella policy through Cincinnati Insurance Company. The commercial general liability policy did not contain ISO Form CG-20 10(11-85) or CG-20 26(11-85). Instead, the policy contained an Additional Insured Endorsement Form GA 472 01 99.

{¶ 5} On October 19, 2001, two employees of Mohawk were engaged in attaching bundles of rebar to a crane operated by a Mahan employee, when the crane came in contact with an overhead electrical power line. As a result, the two employees were electrocuted.

{¶ 6} The injured employees initiated this action against Mahan and Mohawk alleging intentional tort against Mohawk and intentional tort and negligence against Mahan. Mahan then demanded Mohawk hold Mahan harmless and provide a defense pursuant to its interpretation of the subcontract agreement. Mohawk and its insurer refused.

{¶ 7} Both Mahan and Mohawk subsequently settled with the plaintiffs, resulting in the plaintiffs dismissing their claims against both Mahan and Mohawk.

{¶ 8} Mahan issued a "deduct change order" to Mohawk for $125,432.28 for Mohawk's alleged failure to abide by the subcontract agreement. The amount was based on an insurance agent's estimated increase of insurance costs for Mahan's defense against plaintiffs' claims. Mohawk then filed a "lien upon funds" with the Ohio Department of Transportation to attach these funds. The lien failed and ODOT paid the above amount to Mahan. Mahan withheld the funds from Mohawk. It is undisputed Mohawk completed the work in a timely and workmanlike manner.

{¶ 9} Mahan filed a cross claim against Mohawk alleging failure to indemnify, failure to provide the contractually required insurance and failure to hold Mahan harmless. Subsequently, Mohawk cross claimed against Mahan for breach of the subcontract agreement, unjust enrichment, claim on account, payment bond claim, violation of the Prompt Pay Act and declaratory judgment.

{¶ 10} On August 16, 2004, Mohawk filed a motion for summary judgment. On November 19, 2004, via Judgment Entry, the trial court granted summary judgment in Mohawk's favor.

{¶ 11} Appellant Mahan now appeals the November 19, 2004 Judgment Entry assigning as error:

I
{¶ 12} "THE LOWER COURT ERRED IN GRANTING SUMMARY JUDGMENT TO MOHAWK WHEN QUESTIONS OF MATERIAL FACT EXIST."

II
{¶ 13} THE LOWER COURT ERRED IN FINDING MAHAN WAS NOT ENTITLED TO WITHHOLD MONETARY SUMS FROM MOHAWK AS A RESULT OF A DISPUTE CONCERNING THE TERMS OF A CONTRACT."

III
{¶ 14} "THE LOWER COURT ERRED IN RULING THAT MOHAWK IS ENTITLED TO RECOVER PURSUANT TO OHIO REV. CODE § 4113.62, EVEN THOUGH MOHAWK FAILED TO COMPLY WITH THE CONDITIONS PRECEDENT TO THAT STATUTE."

IV
{¶ 15} "THE LOWER COURT ERRED IN FAILING TO FIND MOHAWK DID NOT COMPLY WITH THE TERMS OF ITS SUBCONTRACT AGREEMENT WITH MAHAN IN DEFENDING AND HOLDING MAHAN HARMLESS FROM THE LAWSUIT FILED BY MOHAWK EMPLOYEES."

V
{¶ 16} "THE LOWER COURT ERRED IN CONCLUDING OHIO REV. CODE § 2305.31 RENDERS VOID THE CONTRACT OBLIGATION OF MOHAWK TO DEFEND MAHAN, PROVIDE COVERAGE, AND TO PROCURE INSURANCE TO DEFEND AND INDEMNIFY MAHAN."

VI
{¶ 17} "THE LOWER COURT ERRED IN FAILING TO CONSIDER THAT OHIO REV. CODE § 2305.31 DEALS ONLY WITH THE OBLIGATION TO INDEMNIFY FOR NEGLIGENCE AND DOES NOT PRECLUDE INDEMNIFICATION WHERE AN INTENTIONAL TORT IS ALLEGED."

VII
{¶ 18} "THE LOWER COURT ERRED IN FAILING TO CONSIDER WHETHER THE CRANE OPERATOR OF MAHAN PERFORMING WORK TASKS FOR MOHAWK WAS A BORROWED SERVANT, MAKING OHIO REV. CODE § 2305.31 INAPPLICABLE."

VIII
{¶ 19} "THE LOWER COURT ERRED IN RULING THAT A DISMISSAL OF A LAWSUIT FILED BY EMPLOYEES OF MOHAWK THAT ALLEGED BOTH INTENTIONAL TORT AND NEGLIGENCE PRECLUDES AN ACTION FOR INDEMNITY BY MAHAN."

IX
{¶ 20} "THE LOWER COURT ERRED IN FINDING THAT BENEFITS PAID UNDER THE OHIO WORKERS' COMPENSATION SYSTEM SERVES AS A WAIVER TO THE CONDUCT AND VIOLATIONS BY MOHAWK."

X
{¶ 21} "THE LOWER COURT ERRED IN CONCLUDING, EVEN IF A WORKERS' COMPENSATION STATUTE AS TO IMMUNITY IS APPLICABLE, MOHAWK DID NOT WAIVE THAT IMMUNITY."

XI
{¶ 22} "THE LOWER COURT ERRED IN FAILING TO CONSIDER WHETHER THE TERMS OF POLICIES OF INSURANCE PROVIDED BY MOHAWK TO MAHAN REQUIRE BOTH A DUTY TO DEFEND MAHAN AND POLICY COVERAGE OF MAHAN FOR THE CAUSES OF ACTION ALLEGED BY THE EMPLOYEES OF MOHAWK.

XII
{¶ 23} "THE LOWER COURT ERRED IN CONCLUDING THAT DISMISSAL OF ALLEGATIONS INVOLVING CONTRIBUTION BY JOINT TORTFEASORS TO THE PLAINTIFFS IMPACTS THE CLAIM OF MAHAN AGAINST MOHAWK AND THE INSURANCE CARRIER.

XIII
{¶ 24} "THE LOWER COURT ERRED IN CONCLUDING THAT THE DECISION INVOLVING THE CLAIMS INVOLVING MOHAWK DISPOSED OF THE CLAIM INVOLVING CINCINNATI INSURANCE COMPANY.

XIV
{¶ 25} "THE LOWER COURT ERRED IN FAILING TO CONSIDER PRIOR TO ITS DECISION WHETHER CINCINNATI INSURANCE COMPANY HAD A DUTY, UNDER ITS INSURANCE POLICY, TO DEFEND MAHAN.

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