Latest Case: Emory University, Inc. v. Neurocare, Inc. (Contracts)

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Emory University, Inc. v. Neurocare, Inc.

Docket: 19-14160

Opinion Date: January 25, 2021

Judge: Anderson

Areas of Law: Contracts, Personal Injury

The Eleventh Circuit vacated the district court's grant of summary judgment in favor of Neurocare and remanded in an action where Emory University seeks indemnification from Neurocare, whose technologists were found to be 60 percent at fault for the death of the deceased. The court explained that the term "affiliate" in Section 9.1 of the Sleep Diagnostic Services Agreement embodies the term's well-established common meaning, and that common meaning includes a superior, grandparent corporation. In light of Emory University's direct control and entire ownership of Wesley Woods's parent, which directly controls and owns Wesley Woods, the court concluded that Emory University is Wesley Woods's affiliate. The court applied Georgia case law and also concluded that the indemnification bar doctrine does not operate in the unique facts of this case. The court explained that the bar is a narrow exception to an otherwise proven claim for indemnification based in a string of Georgia cases, starting with GAF Corp. v. Tolar Constr. Co., 246 Ga. 411, 411, 271 S.E.2d 811, 812 (1980). The court read these cases as only applying to the scenario in which the underlying defense is a complete defense in that it would have defeated the underlying action—that is, the entire action and any liability arising therefrom for which the indemnitor would then be liable. Therefore, being a limited exception to indemnification, the court concluded that the bar does not extend to this case—a scenario in which, had the defense in question been asserted in the underlying action to protect Emory University, Neurocare's indemnification obligation would remain, and Neurocare would remain obligated to indemnify Wesley Woods.