Jones v. Ruhlin Co.

7 Ohio App. Unrep. 340
CourtOhio Court of Appeals
DecidedOctober 24, 1990
DocketCase No. 14568
StatusPublished

This text of 7 Ohio App. Unrep. 340 (Jones v. Ruhlin Co.) 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
Jones v. Ruhlin Co., 7 Ohio App. Unrep. 340 (Ohio Ct. App. 1990).

Opinion

BAIRD, J.

This cause comes before the court upon the appeal of defendants/cross-claimants Firestone Tire & Rubber Company (Firestone) and the Ruhlin Company (Ruhlin), and cross-claimant Liberty Mutual Insurance Company (Liberty), from the judgment of the Summit County Court of Common Pleas granting summary judgment in favor of co-defendants Viking Fire & Protection Company (Viking) and Kiser Excavating Company (Kiser) on appellants' cross-claims for indemnity and contribution in plaintiff Alice Marie Jones's action for the wrongful death of her husband.

On July 1, 1985, Gerald Jones, an industrial meter reader employed by the City of Akron Water Department, entered a water meter vault owned by Firestone. Jones died as the result of inhaling gas fumes leaking from a gas pipe near the vault. The water meter vault had been constructed as part of a construction project for which Ruhlin was the general contractor, Viking was the subcontractor on the water meter vault Portion, and Kiser was a subcontractor of Viking. Liberty was the general liability insurer for Ruhlin and Firestone, and it joined the action as a cross-claimant against Viking and Kiser.

Prior to trial, Viking and Kiser reached a settlement with the plaintiff, and obtained a release from all claims against them. After one [341]*341day of pretrial hearings, Liberty negotiated a settlement with the plaintiff on behalf of Firestone and Ruhlin. Appellants then sought to pursue their cross-claims against Viking and Kiser, but the trial court dismissed these claims upon motion for summary judgment. Appellants assign three errors on appeal.

Assignments of Error.

"I. The trial court erred in denying appellants' motions for summary judgment on appellants' crossclaims against appellees for indemnification.

"II. The trial court erred in sustaining appellee's motions for summary judgment on appellants' crossclaims against appellees for indemnification.

"A. Appellees were required to indemnify appellants for all litigation expenses, including monies paid in settlement, absent a finding of negligence on the part of appellants.

"B. There was no evidence before the trial court to make a determination as to appellants' crossclaims for indemnification based on common law principles."

Viking entered into an indemnity agreement with Ruhlin, the relevant portion of which reads:

"The subcontractor shall indemnify the contractor and owner and save them harmless from damage to owner's property and from all claims and judgments for injury or death to persons or property damaged (including costs of litigation and attorney fees) made or obtained against contractor or owner by third persons, including owner's, contractor's and subcontractor's employees and agents, based on injuries to person or property in any manner caused by, incident to, connected with, resulting or arising from the performance of this contract or the presence of the subcontractor's employees and/or agents on owner's premises, but the subcontractor will not be responsible for loss, damage or injury, including death, caused by the negligence of the contractor or owner or its employees."

By the express terms of this provision and by prevailing law, which limits the effect of such indemnity provisions, Firestone and Ruhlin could recover as indemnitees only such funds as they paid by way of judgment or settlement for their secondary or vicarious liability, Le., on a theory of respondeat superior. R.C. 2305.31 reads in part:

"A covenant, promise, agreement, or understanding in, or in connection with or collateral to, a contract or agreement relative to the design, planning, construction, alteration, repair, or maintenance of a building, structure, highway, road, appurtenance* and appliance, including moving, demolition, and excavating connected therewith, pursuant to which contract or agreement the promisee, or its independent contractors, agents or employees has hired the promisor to perform work, purporting to indemnify the promisee, its independent contractors, agents, employees, or indemnities against liability for damages arising out of bodily injury to persons or damage to property initiated or proximately caused by or resulting from the negligence of the promisee, its independent contractors, agents, employees, or indemnities is against public policy and is void. ***."

Where the indemnitee in a construction contract is solely liable, or where liability is concurrent to that of the indemnitor, R.C. 2305.31 prohibits indemnity. Kendall v. U.S. Dismantling Co. (1985), 20 Ohio St. 3d 61, paragraph one of the syllabus.

Without rendering its analysis of the Viking-Kiser settlement agreement, the trial court held that any Secondary liability of Firestone and Ruhlin was extinguished by virtue of that settlement, citing Herron v. Youngstown (1940), 136 Ohio St. 190. In that case, the Supreme Court of Ohio held that a settlement with the party primarily liable bars the plaintiff from further action against the party secondarily liable. Id. at paragraph three of the syllabus.

Subsequent cases have limited the broad scope of this rule to instances there the settlement agreement constitutes a full release of the party primarily liable, where there is an expression of full satisfoction of the claim, and where there is no reservation of rights against other parties. See Riley v. Cincinnati (1976), 46 Ohio St. 28 287; Diamond v. Davis Bakery, Inc. (1966), 8 Ohio St. 28 38. Thus, where the settlement agreement constitutes less than a full release, where there is an expression of only partial satisfection of the claim, and where there is clear intent to reserve rights against other parties, such a settlement will not bar further action against nonsettling secondarily liable parties. Id.

If such were the case with the Viking-Kiser settlement, a triable issue might have remained as to appellants' right to indemnity for costs of settlement and attorney's fees, as the FirestoneRuhlin settlement might arguably have been made on the basis of their secondary liability.1 [342]*342However, there is no claim of error in the trial court's ruling that the Viking-Kiser settlement extinguished Firestone's and Ruhlin's secondary liability. Indeed, the transcript of the pretrial hearing of November 21, 1988, clearly establishes that the parties accepted the trial court's determination that both the primary liability of Viking and Kiser and the secondary liability of Firestone and Ruhlin were no longer at issue, and that the parties understood that the only issues remaining to be resolved at trial were the primary liabilities, if any, of Firestone and Ruhlin. Thus, the only liability that Firestone and Ruhlin could have incurred at this juncture was for their own primary negligence.

Rather than proceeding to a determination of these issues on the merits, Firestone and Ruhlin chose to settle with the plaintiff, presumably without admitting any liability. They then pursued their cross-claims against Viking and Kiser2 for indemnity, claiming that Viking and Kiser had the burden of proving that Firestone and Ruhlin were themselves negligent in order to avoid having to indemnify them.

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Related

Globe Indemnity Co. v. Schmitt
53 N.E.2d 790 (Ohio Supreme Court, 1944)
Herron v. City of Youngstown
24 N.E.2d 708 (Ohio Supreme Court, 1940)
Tugboat Indian Co. v. A/S Ivarans Rederi
5 A.2d 153 (Supreme Court of Pennsylvania, 1939)
Kendall v. U.S. Dismantling Co.
485 N.E.2d 1047 (Ohio Supreme Court, 1985)

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Bluebook (online)
7 Ohio App. Unrep. 340, Counsel Stack Legal Research, https://law.counselstack.com/opinion/jones-v-ruhlin-co-ohioctapp-1990.