702 F.3d 1055
8th Cir.2013Background
- DM & E, a railroad, contracted with Corman to install rail under a Contractor Work Agreement (CWA).
- CWA includes an indemnity clause: Corman defends and indemnifies DM & E for negligent performance by Corman or its workers.
- Lexington Insurance issued a policy naming DM & E as additional insured, but Corman retained a $250,000 self-insured retention.
- Corman’s policy exclusions barred coverage for bodily injury to an employee arising out of the employee’s employment, with an insured contract exception for post-contract damages.
- Lieffort, a DM & E employee-in-charge, was injured while assisting with tie fires on the project; injury occurred May 16, 2007.
- DM & E sued Lieffort’s claims under FELA against DM & E, sought defense/indemnification from Corman, which refused; district court granted summary judgment for Corman.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Whether indemnity covers FELA claims. | DM & E argues indemnity includes FELA claims. | Corman argues indemnity covers only Corman’s negligent conduct. | Indemnity does not extend to FELA claims absent Corman negligence. |
| Whether Lexington policy covers Lieffort’s injury under insured contract. | DM & E contends insured contract extends coverage. | Corman argues indemnity does not render Corman liable for DM & E’s own negligence; insured contract not triggered. | Policy does not cover because the indemnity clause contemplates Corman’s negligence, not DM & E’s. |
Key Cases Cited
- Burlington Northern, Inc. v. Hughes Bros., Inc., 671 F.2d 279 (8th Cir. 1982) (indemnity intended to cover railroad’s nondelegable duty; not broad FELA liability)
- Burlington Northern, Inc. v. Bellaire Corp., 921 F.2d 760 (8th Cir. 1990) (indemnity broad only for acts/omissions; favors no FELA extension)
- S. Ry. Co. v. Ga. Kraft Co., 823 F.2d 478 (11th Cir. 1987) (insulated discussion on whether indemnity covers FELA when contract references negligence only)
- Missouri Pacific Railroad Co. v. International Paper Co., 618 F.2d 492 (8th Cir. 1980) (settlement of FELA claim not conclusive of liability absent indemnity terms)