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Waddell v. LTV Steel Co.12/3/1997
ROCCO, Judge.
LTV Steel Co., Inc. ("LTV") and Richard Rigby appeal from a November 25, 1996 judgment of the common pleas court directing a verdict in favor of Northern RCR, Inc. ("RCR") and dismissing with prejudice LTV and Rigby's joint complaint for indemnity and contribution. We affirm based upon R.C. 2305.31 and related case law, which void indemnity and contribution clauses contained in a contract or agreement relative to the maintenance of a building or structure.
RCR contracted with LTV to perform routine maintenance on the kilns located at LTV's Grand River, Ohio plant. On July 26, 1991, Waddell, an employee of RCR, was injured when he fell from a dumpster which Richard Rigby, an LTsemployee, had lifted above the floor with a forklift. Four days later, LTV issued a purchase order, which contained the terms of its contract with RCR and included indemnification clauses. Both parties later stipulated that the purchase order contained the terms of their contract for the performance of kiln maintenance.
The indemnification clauses provided that RCR agreed to indemnify LTV against liability arising from personal injuries sustained by RCR, its employees, or by any other party, arising out of RCR's performance of the contract, and indemnify LTV for legal costs and attorney fees. They further provided that if any of LTV's employees participated in RCR's work by operating LTV equipment, they and the equipment would be respectively deemed, at that time, employees of RCR and equipment in RCR's sole custody and control. They also required RCR to purchase public liability, workers' compensation, property damage, and automobile insurance policies.
Thereafter, Waddell and his wife, in an amended complaint, commenced the instant case against LTV and Rigby, raising claims against both parties for negligence and loss of service, companionship, and consortium. LTV and Rigby subsequently filed a joint third-party complaint against RCR, seeking indemnity and contribution pursuant to the terms of the foregoing purchase order. All parties eventually filed summary judgment motions, which the court denied, and the case proceeded to trial.
Following the opening statement by counsel for LTV and Rigby, RCR moved for a directed verdict on LTV and Rigby's claim for indemnity and contribution. RCR argued that, pursuant to R.C. 2305.31, the purchase order's indemnification clauses violated public policy and contained no express waiver of RCR's workers' compensation immunity and, therefore, were void.
LTV and Rigby then contended that the clauses were valid, since R.C. 2305.31 applies to fixtures or appliances attached to real estate rather than to the forklift, which is mobile equipment, and since Rigby and the LTV equipment, pursuant to the indemnification clauses, were deemed to be under the sole control of RCR at the time Waddell was injured. LTV further argued that even if the indemnification clauses were void, the clause requiring RCR to indemnify LTV and Rigby for legal costs and attorney fees remained valid. LTV and Rigby also urged that RCR violated the indemnification clause, which required it to purchase public liability, personal property, and automobile insurance policies.
The court then granted RCR's directed verdict motion, stating in the transcript of proceedings at 26-27: "The Court has as a matter of law dismissed the third-party complaint of LTV on the indemnity agreement, finding that the statute, Revised Code Section 2305.31, is controlling. And that the indemnity agreement
is in violation of public policy." The Waddells then settled their claims against LTV and Rigby.
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