Laurens Emergency Med. Specialist v. M.S. Bailey & Sons Bankers,
(S.C. App. Jan. 14, 2002)
A
hospital contracted with an emergency medicine group to provide the hospital
with its emergency room physicians and emergency room medical director. The
contract, which required the hospital to employ non-physician administrative
personnel in the emergency department, contained an "indemnification clause"
that required the hospital to "indemnify [the group] from and against any
and all . . . actions . . . caused by or resulting from allegations of negligent
or wrongful acts . . . of hospital employees . . . ." Upon discovering
that one of the hospital-employed emergency department administrative employees
had embezzled some of the group's funds, the group required that the hospital
indemnify the loss pursuant to the terms of the group's contract. The South
Carolina Court of Appeals held that the clear and unambiguous language of the
contract intended for the hospital to indemnify the group for losses the group
suffered at the hands of negligent hospital employees. The court also rejected
the hospital's argument that the group's negligence contributed to the loss,
holding that the indemnification obligation would apply even if the group was
at fault.