Gill v. State Accident Insurance Fund Corp.

842 P.2d 402, 314 Or. 719, 1992 Ore. LEXIS 231
CourtOregon Supreme Court
DecidedDecember 4, 1992
DocketCC 89C12469; CA A65889; SC S38998
StatusPublished
Cited by5 cases

This text of 842 P.2d 402 (Gill v. State Accident Insurance Fund Corp.) is published on Counsel Stack Legal Research, covering Oregon Supreme Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Gill v. State Accident Insurance Fund Corp., 842 P.2d 402, 314 Or. 719, 1992 Ore. LEXIS 231 (Or. 1992).

Opinions

VAN HOOMISSEN, J.

This is a claim for indemnity under ORS 30.285.1 Plaintiffs Gill and Davidson (plaintiffs) seek indemnity from defendants, the State Accident Insurance Fund Corporation (SAIF) and its current and former directors, for attorney fees and costs that plaintiffs incurred in defending themselves in the case of SAIF v. Montgomery, which was filed in Marion County Circuit Court in 1984.2 The narrow issue presented on review is whether the Court of Appeals correctly concluded that proof of actual loss is required for indemnity under ORS 30.285(1). The broader issue presented, however, is whether the indemnity provisions of ORS 30.285(1) apply at all under the circumstances of this case.

The trial court decided the case on both the narrow and broader issues, concluding that the state was obligated to indemnify plaintiffs and that proof of actual loss was not necessary for indemnity under ORS 30.285(1).3

The Court of Appeals decided the case only on the narrow issue, concluding that proof of actual loss is required for indemnity under ORS 30.285(1), and reversed and remanded the case to the trial court to consider whether plaintiffs had suffered any actual loss. Gill v. SAIF, 110 Or App 533, 536, 823 P2d 447 (1992). The court specifically did not address the broader issue whether plaintiffs’ claims are cognizable under ORS 30.285(1). Id. at 537 n 3. We agree with the Court of Appeals that proof of actual loss is required for [722]*722indemnity under ORS 30.285(1). For the reason that follows, however, we disagree with the Court of Appeals’ reason for . remanding this case to the trial court.

[721]*721“(1) The govemingbody of any public body shall defend, save harmless and indemnify any of its officers, employees and agents, whether elective or appointive, against any tort claim or demand, whether groundless or otherwise, arising out of an alleged act or omission occurring in the performance of duty.
“(2) The provisions of subsection (1) of this section do not apply in case of malfeasance in office or willful or wanton neglect of duty.”

[722]*722Plaintiffs Gill and Davidson formerly were employed by SAIF as president and vice president, respectively. SAIF brought an action against them, claiming that they had breached their fiduciary duties and that they were strictly accountable for a resulting loss of public funds. ORS 297.120 (1989).4 That underlying action is discussed more fully in SAIF v. Montgomery, 108 Or App 93, 814 P2d 536, rev den 312 Or 589 (1991). Plaintiffs tendered their defense of SAIF v. Montgomery to the Attorney General, who rejected the tender. ORS 30.285(3).5 Plaintiffs then retained private [723]*723counsel. The trial court later granted plaintiffs’ motion for partial summary judgment on the issue of liability, and entered judgment in their favor.

After the trial court’s judgment was entered in SAIF v. Montgomery, but before that case was concluded on appeal, plaintiffs brought this action against defendants. ORS 30.285(5).6 Both parties moved for summary judgment on the issue whether the indemnity provisions of ORS 30.285 apply when an action is brought by the state against its own employees, but the employees later are exonerated.7 The trial court granted partial summary judgment for plaintiffs, holding that, because the claims against plaintiffs in SAIF v. Montgomery were torts, the indemnity provisions of ORS 30.285 applied.8

Defendants appealed to the Court of Appeals on numerous issues, including whether the indemnity provisions of ORS 30.285 apply when an action is brought by the state against its own employees, but the employees later are exonerated, and whether proof of actual loss is necessary for indemnity under ORS 30.285.9 The Court of Appeals [724]*724reversed, holding that proof of actual loss is required for indemnity under ORS 30.285, citing Aetna Casualty & Surety Co. v. OHSU, 310 Or 61, 793 P2d 320 (1990). Because the Court of Appeals disposed of defendants’ appeal on that ground, it did not address the question whether the indemnity provisions of ORS 30.285 apply at all on these facts. Gill v. SAIF, supra, 110 Or App at 537 n 3. Plaintiffs petitioned for review in this court.

We address the narrow issue of whether proof of actual loss is required for indemnity under ORS 30.285. Plaintiffs argue that they need not prove that they actually spent anything, but only that they initially incurred liability for their attorney fees and costs.

Assuming, arguendo, that plaintiffs are entitled to indemnity under ORS 30.285, a question we specifically do not decide in this case,10 we hold that they still may not prevail, because they have suffered no actual loss. See Aetna Casualty & Surety Co. v. OHSU, supra, 310 Or at 64-65 (no indemnity is due under ORS 30.285 in the absence of actual loss).

On summary judgment, plaintiffs presented no evidence that they expended any money of their own to defend themselves in SAIF v. Montgomery, nor did they present evidence that they were obligated to repay or to seek reimbursement for their present employer, who did pay their attorneys’ fees and costs.

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Cite This Page — Counsel Stack

Bluebook (online)
842 P.2d 402, 314 Or. 719, 1992 Ore. LEXIS 231, Counsel Stack Legal Research, https://law.counselstack.com/opinion/gill-v-state-accident-insurance-fund-corp-or-1992.