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District Judge Tosses Contribution/Indemnity Claim Where Not Supported With Specific Facts

In a subrogation action brought by an insurer following a boiler explosion in a medical facility, Defendant A cross-claimed against Defendant B alleging contribution or indemnity.  The U.S. District Court for the Southern District of West Virginia granted Defendant B’s motion to dismiss the cross-claim based on Rule 12(b)(6) where the cross-claim merely stated that 1) Defendant B...

Tenth Circuit Affirms That Primary Insurer’s Insolvency Did Not Trigger Excess Insurer’s Obligation

An Oklahoma corporation distributed a drilling mud viscofier containing asbestos to the oilfield between 1966 and 1985.  Thereafter, the corporation faced multiple personal injury suits based on asbestos exposure.  Its primary insurer from 1975 to 1984, however, was declared insolvent by a New Hampshire court in 2003 before the insurer had paid out any claims for bodily injury on the...

Indemnity Provision Enforceable Where Offshore Contract Is Maritime In Nature

In a contractual indemnity dispute following an offshore worker’s injuries, the U.S. District Court for the Eastern District of Louisiana confronted whether a the contract’s indemnity provision was enforceable.  Specifically, the court had to determine whether the contract was governed by maritime law (making the indemnification provision enforceable) or whether it was...

$2.5 Million Judgment Reversed In Pennsylvania Utility Pole Painter’s Case

An intermediate appellate court in Pennsylvania reversed a $2.49 million judgment in favor of a worker for injuries sustained after falling 40 feet while working as an employee of an independent contractor for a utility.  The lower court judgment was against the utility, which appealed on the grounds that the trial court erred by not granting its motion for judgment notwithstanding the...

Importance Of Conditions Precedent To Indemnification Demands Highlighted In Pipeline Case

In 1994, an oil and gas company (Company A) sold a pipeline to Company B, which has owned and operated it since.  During the sale, the companies entered into a Purchase and Sale of Assets Agreement whereby the parties agreed that any contamination occurring before the agreement’s closing date would be Company A’s responsibility and any contamination after the closing date...

Insurance Policy’s Sublimit Applies Following Underground Storage Tank Leak

Last week, the Second Circuit issued a summary order affirming a judgment of a district court involving the terms of a pollution and remediation liability policy.  The policy denied coverage for loss “based upon or arising out of the existence of any underground storage tank(s) and associated piping” except for certain specified tanks and piping that was listed on an...

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