McConnaughhay, Coonrod, Pope, Weaver, Stern & Thomas, P.A.

Welch v. Complete Care Corporation and Professional Business Owners Association, Inc.

27 FLW D1337

Plaintiff injured while employed by employer and received workers' compensation benefits. A third party claim was filed against the landlord/owner of the premises where the claimant was injured and based upon an allegation of negligence in maintaining the work premises. A settlement was effectuated with landlord/owner and as part of the settlement, plaintiff obtained from landlord/owner an assignment of any claim that the landlord/owner had against the employer. Plantiff/claimant then filed cause of action against employer based on a contractual indemnification provision between the employer and the landlord/owner of the premises. Equitable subrogation claim against employer denied under this factual scenario. When one of several defendants pays the plaintiff's entire claim that in equity should have been paid by one of the other defendants, a claim for equitable subrogation arises. In this instance, however, the plaintiff had no claim against the employer because of the exclusive remedy provisions of the workers' compensation statute. Common law indemnification was also denied. To succeed in a claim based on common law indemnity, there must be a showing that: 1) the landlord/owner was without fault and 2) that the landlord/owner's liability for damages to the plaintiff was vicarious only and solely based upon the wrong of the employer. In this case, the landlord/owner was not responsible for damages vicariously. Accordingly, there was no common law indemnification claim. There was no legal relationship between the employer and the landlord/owner which would create any vicarious liability on the part of the landlord/owner. Claim for contractual indemnification in this scenario allowed. Indemnification provision in agreement between landlord/owner and employer provided for indemnification of damages by employer but made no reference to indemnifying the landlord/owner for its own negligence. Summary judgment against the landlord/owner based upon contractual indemnification overturned on appeal since there was a question as to whether the landlord/owner or employer was the negligent party. The court pointed out, however, that Florida courts view with disfavor contracts that attempt to indemnify a party against its own negligence. Dismissal of claim against carrier of employer affirmed based on the contractual indemnification claim. There was a specific exclusion in the insurance policy issued to the employer excluding liability assumed under a contract. Court affirmed the summary judgment in favor of the insurer for the employer.

Cases

Workers' Compensation

Welch v. Complete Care Corporation and Professional Business Owners Association, Inc.