Opinion ID: 1305851
Heading Depth: 1
Heading Rank: 2

Heading: Otis Elevator's Appeal

Text: Otis Elevator contends the trial court erred in reducing the jury's verdict to $250,000 to offset the amount that Otis Elevator's insurer, Liberty Mutual, paid in Smith's action. [3] We agree. In our view, Hardin Construction should not receive the benefit of an insurance contract for which Otis Elevator paid the premiums. Accordingly, if one party is entitled to indemnity from another, the right to indemnity is not defeated by the fact that the loss to be indemnified for was actually paid by an insurance company. Tillman v. Wheaton-Haven Recreation Ass'n, 580 F.2d 1222, 1230 (4th Cir.1978). See List & Clark Constr. Co. v. McGlone, 296 S.W.2d 910 (Mo.App.1956) (wherein the court held a contractor was entitled to indemnity from a subcontractor for expenses it incurred in defending an action by a third party even though the contractor was reimbursed by its insurer for the costs of litigation); see also Alyeska Pipeline Serv. Co. v. H.C. Price Co., 694 P.2d 782 (Alaska 1985) (wherein the court applied the collateral source rule to a contractual indemnity provision); General Accident Fire & Life Assurance Corp. v. Smith and Oby Co., 272 F.2d 581 (6th Cir.1959) (where a subcontractor indemnified a general contractor against injuries to the subcontractor's employees, and the general contractor's insurer settled a claim with an injured employee of the subcontractor, the general contractor's insurer was permitted to recover from the subcontractor the settlement amount it paid plus costs and attorney fees); cf. Johnston v. Aiken Auto Parts, ___ S.C. ___, 428 S.E.2d 737, 738 (Ct.App.1993) ([A] wrongdoer is not entitled to have the damages for which the wrongdoer is liable reduced by proving that the plaintiff will receive compensation or indemnity for the loss from a collateral source, wholly independent of the wrongdoer.). We therefore reverse the trial court's order reducing the verdict and remand for an entry of judgment in accordance with this opinion. AFFIRMED IN PART, REVERSED IN PART, AND REMANDED. FINNEY, Acting C.J., MOORE, J. and BRUCE LITTLEJOHN and M.D. SHULER, Acting Associate Justices, concur.