Chace v. Dorcy Internatl.3/4/1991
KRUPANSKY, Chief Justice.
This convoluted appeal represents four consolidated appeals from two distinct cases which were consolidated at the trial level. The judgment entry in the two consolidated cases purportedly reflects, viz., (1) the approximately $2,000,000 tort settlement agreement between three of six party defendants and (2) a declaratory judgment resolving the issue that Kansa General Insurance owed a defense and indemnification as well as a money judgment to the manufacturer and its vendors since the insurer, Kansa General, refused to defend in the tort action.
The judgment entry of June 5, 1989 reflects the trial court confirmed settlement of approximately $2,000,000 and held Kansa responsible viz.: (1) for liability coverage of $1,000,000 policy limits; and (2) legal fees and expenses to defend the Chace claim incurred by Griffin Products (1982) LtdsThese actions were appealed by Kansa and assigned case Nos. 58021 and 58022.
The judgment entry of July 21, 1989 journalized inter alia the final amounts Kansa was to pay for expenses in the two actions as follows: (1) all expenses and fees associated with the declaratory judgment action; and (2) all expenses, fees and costs incurred for investigation, negotiation and defense of the claims against Kansa in the Chace tort action including attorney fees. Kansa appealed and on appeal these cases were assigned case Nos. 58197 and 58198.
Essentially, the dispute herein centers upon whether defendant-appellant, Kansa General Insurance Company, a Finnish company with offices in Montreal and Toronto, Canada, owed a defense and indemnification to a Canadian manufacturer. In the declaratory judgment action, a determination was desired whether this manufacturer, i.e., Griffin Products, Inc., and its vendors were owed a defense pursuant to a vendor's clause of a contract of insurance to the full $1,000,000 limits of a comprehensive liability insurance policy No. 2000184. Kansa policy No. 2000184 was ostensibly issued to Griffin Products, Inc., a Canadian company which manufactured motorcycle helmets. The helmets were distributed in the United States by Dorcy International ("Dorcy") and Fuqua Industries ("Fuqua") and retailed in Ohio by J.C. Penney Co., Inc. ("Penneys").
A chronological overview of each lower court case is presented for clarity.
Plaintiff Sharon Chace filed a complaint July 16, 1984 as guardian of Ross Chace, an incompetent, on his and her own behalf sounding in tort for strict product liability and negligence. This complaint claimed that on or about August 4, 1984 Chace's husband, Ross, was irreparably brain damaged whesthrown from the back of a motorcycle on State Route 322 in Cuyahoga County while wearing a defective helmet manufactured, distributed and sold by defendants. The second amended complaint filed July 2, 1986 named six corporate defendants in strict tort liability for defective helmet claiming $7,500,000 in damages, viz., (1) Dorcy, (2) Griffin Corporation, (3) Fuqua, (4) J.C. Penney, (5) Griffin Products, Inc., and (6) Griffin Products, Inc. (1982). In addition, the complaint named two individuals in negligence, viz., (1) the driver of the motorcycle, Jeffrey Kassay, who swerved, and (2) the driver of a truck, Eugene Baker, who either stopped or slowed. These two individuals were later dismissed with prejudice by plaintiff.
The stipulated facts indicate Sharon Chace settled her claims against the three corporate defendants, i.e., Dorcy, Fuqua and J.C. Penney, for over $2,000,000. Thereafter, Dorcy was assigned all rights of the parties to indemnification from Kansa. Griffin Corporation and Griffin Prod
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