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Candyworld, Inc. v. Granite State Insurance Co.

Citations: 652 So. 2d 1165; 1995 Fla. App. LEXIS 2261; 1995 WL 92604Docket: No. 93-1090

Court: District Court of Appeal of Florida; March 7, 1995; Florida; State Appellate Court

Narrative Opinion Summary

The case involves an appeal by United Shows, the actual employer of an injured worker, contesting a trial court decision that found it liable to Candyworld, the statutory employer, for common law indemnification. The worker, injured while operating a ride, received workers' compensation benefits and sued United for negligence. United, claiming workers' compensation immunity, brought Candyworld into the litigation as a third-party defendant but later dropped this claim and settled with the worker. United then sought indemnification from Candyworld, which argued that it was immune under workers' compensation laws. The trial court granted summary judgment in favor of Candyworld, ruling that United's claim was invalid as Candyworld had no obligation to pay indemnity. The court further found that United's notice to Candyworld regarding potential indemnification liability was insufficient. The judgment was reversed and remanded in favor of Candyworld, emphasizing that both parties shared workers' compensation immunity, thereby rendering any indemnification claims moot. The decision also noted that the denial of summary judgment on immunity did not conclusively resolve the defense, allowing for further examination at trial.

Legal Issues Addressed

Indemnification and Vouching In Liability

Application: United's attempt to establish indemnification liability against Candyworld failed due to insufficient notice and the voluntary nature of United's settlement.

Reasoning: The notice primarily pertained to the carrier's subrogation rights concerning recovery of benefits paid to the injured employee, rather than establishing liability for common law indemnification against Candyworld.

Voluntary Settlement and Indemnification Liability

Application: The court held that a voluntary settlement by United precludes establishing indemnification liability against Candyworld.

Reasoning: An indemnitee who has voluntarily settled a claim cannot establish vouching in liability against a potential indemnitor, as supported by Scott and Jobalia Const. Co. v. Halifax Paving Inc.

Workers' Compensation Immunity under Florida Law

Application: The court determined that United retained workers' compensation immunity as the agreement with Candyworld was deemed a subcontract, fulfilling statutory obligations.

Reasoning: Consequently, if a contractor fulfills its obligation to secure compensation coverage, it gains immunity from lawsuits by the subcontractor’s employees.