Segal Mccambridge Obtains a Complete Dismissal of Federal Court Action Seeking To Recover Settlement Funds


October 14, 2011

In a United States District Court SDNY case, Judge Richard K. Eaton, granted summary judgment in favor of Segal McCambridge client, Manorcare Health Services, Inc. ("Manorcare"), completely dismissing the plaintiff's causes of action for contractual indemnification, common law indemnification, and breach of contract.

The plaintiff, CSC Scientific Company, Inc. ("CSC"), sought indemnification from Manorcare for CSC's voluntary settlement in an underlying asbestos case.

Judge Eaton ruled in favor of Manorcare, finding that the express provisions of the Manorcare-CSC contract precluded recovery under contractual indemnification and breach of contract. In addition, since there was a valid indemnification agreement between Manorcare and CSC, Judge Eaton ruled that CSC would not be entitled to common law indemnification, which is reserved for situations requiring equitable relief under a quasi-contract theory.

Christian H. Gannon and Simon Lee represented Manorcare Health Services in the case. Simon Lee argued the motion on behalf of Manorcare. You can read the court's ruling here."