Total Quality Logistics, LLC v. JK & R Express, LLC
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In this breach of contract action, the Supreme Court reversed the judgment of the court of appeals applying the common-law requirements set out in Globe Indemnity Co. v. Schmitt, 53 N.E.2d 790 (Ohio 1944), without considering whether the parties intended to abrogate those requirements, holding that the Globe Indemnity Co. requirements do not apply when the parties express a clear intent to abrogate those common-law requirements in their contract.
On appeal, Appellant argued that the common-law requirements set out in Globe Indemnity Co. for determining whether an indemnitee may recover against an indemnitor when the indemnitee has settled a claim without the indemnitor's involvement do not apply when the parties express a clear intent to abrogate those requirements in their contract. The Supreme Court agreed and reversed the court of appeals' judgment, holding (1) the requirements set forth in Globe Indemnity Co. do not apply when the parties express a clear intent to abrogate those common-law requirements in their contract; and (2) the lower courts erred by failing ascertain whether the parties intended to abrogate the common-law requirements for indemnification.
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