Opinion ID: 767146
Heading Depth: 4
Heading Rank: 1

Heading: The Common Law Indemnity Claims Against Barton and Kahn

Text: 31 In 1987 the Supreme Court of Kentucky addressed the common law right to indemnity in Crime Fighters Patrol v. Hiles, 740 S.W.2d 936 (Ky. 1987). In Crime Fighters, the underlying claim involved an assault on a customer, Hiles, at a White Castle restaurant. Hiles claimed that White Castle knew of the assailant's violent propensities, yet failed to protect him. The restaurant filed a third party suit against its security firm, Crime Fighters Patrol, alleging that they breached their contract by failing to keep order. The court noted that the common law provided White Castle and Crime Fighters Patrol complete indemnity from the assailant if they could prove that he was more to blame (at greater fault) than they for Hiles' injuries. See Crime Fighters, 740 S.W.2d at 939. The Crime Fighters court brought the common law right of indemnity into fuller relief by looking to the equitable principle of restitution: 32 Where a person has become liable with another for harm caused to a third person because of his negligent failure to make safe a dangerous condition of land or chattels, which was created by the misconduct of the other, ... he is entitled to restitution from the other for expenditures properly made in the discharge of such liability. 33 Crime Fighters, 740 S.W.2d at 940 (quoting Restatement of Restitution § 95 (1937)). 34 In essence, we have a very similar situation before us. Budd alleges that Barton and Kahn bear greater responsibility for the dangerous condition--if any--atBudd's Shelbyville plant. The Crime Fighters rule seems to apply to the case at hand, except for the first clause--Where a person has become liable. In addressing Kentucky's common law indemnity claim, courts have repeatedly recognized liability as a prerequisite. See, e.g., Clark v. Hauck Mfg. Co., 910 S.W.2d 247, 253 (Ky. 1995) (Indemnity is not an issue until fault has been determined.... There can be no indemnity without liability.); Poole Truck Line, Inc. v. Commonwealth, 892 S.W.2d 611, 614 (Ky. Ct. App. 1995) (Both indemnity and contribution depend upon liability by one or both parties to the original claimant who suffered the original loss. Without such liability, there is no independent right to indemnity or contribution.). In general, then, a party cannot recover under a common law indemnity claim if it has not been held liable to a third party 2 . Budd is not liable to Thompson; thus, Budd's common law indemnity claims fail. 35 To the extent that Budd's common law indemnity claims also involve claims for attorney fees, they fail as well. Generally, each party is responsible for its own attorney fees and expenses. See Nucor Corp. v. General Elec. Co., 812 S.W.2d 136, 147 (Ky. 1991). The Nucor court noted, however, that exceptions to this general rule apply where equity indicates that attorney fees should be indemnified. Id.; see also, Chittum v. Abell, 485 S.W.2d 231, 237 (Ky. Ct. App. 1972). The Chittum court specifically stated that attorney fees may be allowed in the judgment of indemnity for the damages. Id., 485 S.W.2d at 237. Chittumindicates that liability for the underlying claim is also a prerequisite for a common law indemnity claim for attorney fees. Thus, the district court properly denied Budd's motion for summary judgment and dismissed Budd's common law indemnity claims (including attorney fees) for failure to state a claim.