Lane Construction Corporation, The v. Five Star Trucking LLCLane Construction Corporation, The v. Five Star Trucking LLC
MEMORANDUM AND ORDER
This matter is before the court on Defendant‘s motion to dismiss. (Doc. 10.) The motion is briefed and ripe for decision. (Docs. 15, 18.) For the reasons stated herein, the motion is GRANTED IN PART and DENIED IN PART.
I. Facts
The following facts are taken from Plaintiff‘s first amended complaint. (Doc. 26.)1 The Lane Construction Corporation (“Plaintiff” or “Lane“) served as the general contractor for the Levees-Argentine/Armourdale project (the “levee project“) near Kansas City, Kansas. (Id. ¶ 15.)
All work and services covered by this [Subcontract] shall be at the risk of [Five Star] alone. To the fullest extent permitted by law, [Five Star] agrees to defend, indemnify and hold harmless [Lane] and its agents and employees from and against any and all allegations, losses, actions, proceedings, liabilities, claims, judgments, demands, and any other loss, damage or expense, including the obligations of [Lane] on account of any similar agreement [Lane] has . . ., and including Claims arising from injuries or death of persons ([Five Star‘s] employees included), damage to property, and [Five Star‘s] failure to comply with any of its obligations under this [Subcontract], arising directly or indirectly out of its work or services or obligations herein undertaken or out of the operations or services conducted by [Five Star] and its subcontractors, truckers, and suppliers, regardless of any act or omission on the part of [Lane] or its agents or employees, save and except only Claims arising through the sole negligence or sole willful misconduct of [Lane], and will make good to and reimburse [Lane] for any expenditures, including reasonable attorney‘s fees, consultant‘s fees, costs, fines, penalties, corrective measures and any other reasonable expenses [Lane] may incur by reason of such Claims. [Five Star‘s] obligations under this paragraph survive the termination of this [Subcontract]. If requested by [Lane], [Five Star] will defend any such Claims at the sole cost and expense of [Five Star] and [Lane] shall have choice of counsel.
(Id. ¶ 5 (hereinafter “Paragraph 5” or the “indemnification provision“).) As the levee project was ongoing, Five Star subcontracted with Long Haul Trucking—a trucking company owned and operated by Robert Long—to perform work. (Doc. 26 ¶ 26.) Mr. Long and his employees
On May 5, 2025, as a result of the allegations underlying the Long lawsuit, Lane‘s insurer Liberty Mutual Fire Insurance Company, demanded defense and indemnification from Five Star for any liability arising from the Long lawsuit, and insurance coverage on Lane‘s behalf. (Docs. 26 ¶¶ 31–32; see 1-2.) Five Star refused. Consequently, on April 16, 2026, Lane filed the instant action concerning its rights and obligations under the Subcontract. Lane asserts five claims, each premised on a breach of the Subcontract: declaratory judgment (“Count I“); duty to defend (“Count II“); contractual indemnity (“Count III“); failure to procure or provide insurance (“Count IV“); and failure to satisfy safety and lower-tier obligations (“Count V“). (Doc. 26 ¶¶ 36–61.) Defendant now moves to dismiss the complaint.
II. Standard
To withstand a motion to dismiss for failure to state a claim under
III. Analysis
Five Star moves to dismiss on four grounds: (1) the case violates Kansas‘s one-action rule; (2) the Subcontract‘s indemnification provision exempts Five Star because Lane was solely negligent; (3) the indemnification provision is void under
A. The Subcontract‘s Indemnification Provision
The court begins with the three arguments that target the merits of the Subcontract‘s indemnification provision, Paragraph 5. Five Star contends that the provision‘s (1) sole-negligence carve-out exempts it from any indemnity obligation; (2) is void under
Five Star‘s first two arguments both attack the substance of the indemnification provision and are therefore addressed together. Five Star first argues that Lane was solely negligent in the Long lawsuit and that the provision‘s exception for claims arising through the “sole negligence” of Lane relieves Five Star of any indemnity obligation. (Docs. 10 at 6–8; 10-1 ¶ 5.) Second, Five Star argues that, if the provision reaches claims arising from Lane‘s own negligence, it is void and unenforceable under the Kansas anti-indemnity statute,
The court begins with the sole negligence exception. The indemnification provision excepts from Five Star‘s obligation those claims “arising through the sole negligence or sole willful misconduct of [Lane].” (Doc. 10-1 ¶ 5.) By its plain terms, that exception is triggered only where Lane‘s negligence is the sole cause of a claim; it does not reach a claim arising in part from the conduct of Five Star or its subcontractors. Here, Lane seeks indemnification for Long‘s negligence to the extent it contributed to the underlying accident, not for its own. Whether Long‘s conduct contributed to the collision in the Long lawsuit or whether, as Five Star insists, Lane was solely responsible for the accident, is a disputed question of fact the court is not able to resolve at this stage. The only support Five Star offers is a pretrial stipulation in the Long lawsuit that “a collision occurred between Long and Lane[‘s] employee.” (Doc. 10 at 6–7 (citing Doc. 26 ¶ 26(f)).) The court fails to see how a stipulation that a wreck occurred establishes that Lane was solely at fault for it. Accepting the complaint‘s allegations as true, the sole-negligence exception does not defeat Lane‘s claims at the pleading stage.
Next, Five Star appears to imply that the pronoun “its” in the “opening clause of Paragraph 5” means that Five Star‘s only indemnification obligations are to itself. (Doc. 10 at 7–8.) This reasoning is unpersuasive. First, the word “its” does not appear in the opening clause of Paragraph 5. Furthermore, to the extent Five Star is referring to the second sentence of Paragraph 5, the
That leaves Five Star‘s next contention that the indemnification provision is void and unenforceable under
As a threshold matter, Kansas’ anti-indemnification statute governs this Subcontract.
Looking more closely at the provision, Paragraph 5 obligates Five Star to indemnify Lane for claims arising out of the operations of Five Star and its subcontractors “regardless of any act or omission on the part of [Lane] or its agents or employees.” (Doc. 10-1 ¶ 5.) Read in isolation, that phrase would require Five Star to indemnify Lane no matter who was at fault, including where Lane‘s own negligence caused or contributed to the claim. And Five Star is correct that the statute is not limited to a promisee‘s sole negligence: by its terms,
But the analysis does not stop there. The provision in Great Plains, like Paragraph 5 here, was prefaced by what the court called a “safe harbor” clause—a promise to indemnify only “to the maximum extent allowed by applicable law.” Id. That language, the court explained, allowed the indemnitor‘s liability “to shrink to fit applicable law.” Id. at 213. Therefore, the court held that “[b]ecause Kansas law does not allow [promisor] to indemnify [promisee] for [promisee‘s] negligence, [promisor‘s] obligation is limited to indemnifying its own negligence.” Id. at 213 (citing St. Paul Surplus Lines Ins. Co. v. International Playtex, Inc., 245 Kan. 258, 274, 777 P.2d 1259 (1989) (holding that a safe harbor clause in a contract insuring punitive damages did not cover punitive damages because Kansas law prohibited such insurance)). The court concluded that ”
Here, Paragraph 5 opens with the same type of safe harbor provision, demanding a similar result. Five Star agreed to indemnify Lane “[t]o the fullest extent permitted by law.” (Doc. 10-1 ¶ 5.) Five Star‘s indemnity obligation, then, shrinks to fit Kansas law. Because
That construction also resolves the question of whether the sole negligence exception renders the provision void. Five Star argues that the exception is narrower than the statute, because
Lane‘s response confirms the point. Lane represents that it does not seek indemnity in this action for its own conduct, but only for the alleged fault of Long—Five Star‘s subcontractor. (Docs. 26 ¶¶ 47–48, 53–58; 15 at 15.) The statute voids an indemnification provision to the extent it shifts the promisee‘s negligence onto the promisor; it says nothing about a claim for indemnity premised on the conduct of the promisor and its subcontractors.
Five Star‘s effort to distinguish Great Plains is unavailing. It argues that, unlike the indemnitor there, “Five Star has no share of negligence in the underlying tort” because it “played no part in the collision between Long and the Lane employee.” (Doc. 10 at 10.) Again, that is a factual assertion, and it conflicts with the complaint‘s allegations that the Long lawsuit arises at
Five Star‘s remaining theory is that the indemnification provision is unenforceable because it is impermissibly vague and unconscionable. (Doc. 10 at 11–14.) This argument fares no better. As to vagueness, it is true that an indemnity provision so indefinite that the parties’ intent cannot be ascertained is unenforceable. See Mohr v. State Bank of Stanley, 770 P.2d 466, 480 (Kan. 1989) (“[W]here the purported contract is so vague and indefinite that the intentions of the parties cannot be ascertained, it is unenforceable.” (citation omitted)). But here, the indemnification provision is a more or less standard indemnity clause that appears to be part of a multi-state contract that was drafted with the knowledge that it would apply to different projects across different jurisdictions. Certainly, that is no excuse for failing to familiarize oneself with a jurisdiction‘s applicable law. Nevertheless, the presence of a sole-negligence exemption along with a broad safe harbor clause does not render it impermissibly vague but instead, requires the provision “shrink to fit applicable law.” Great Plains, 62 Kan. App. 2d at 213. See
Nor is the provision unconscionable. Unconscionability is an affirmative defense, and dismissal under
B. The One-Action Rule
The one-action rule is a product of Kansas‘s comparative fault law. See
The one-action rule turns on what a claim requires rather than on what it is called. That is, “the relevant question is not whether an action derives from tort law or contract law. The relevant question is whether the fact-finder must compare fault. If so, fault must be compared in one action.” Great Plains, 62 Kan. App. 2d at 225–26. In Great Plains, the court applied that principle to an express contractual indemnity claim, holding that “[w]hen a contract requires one party to indemnify another for its share of negligence, the underlying tort controls the party‘s liability. It
That principal resolves Count III. In Section III.A, supra, the court explained that Paragraph 5‘s safe harbor provision caps Five Star‘s indemnity obligation at its own share of fault, and that Kansas law forbids Five Star from indemnifying Lane for Lane‘s own negligence.
The problem now is that no such comparison can be made in the Long lawsuit. Lane was the defendant in that action. It could have impleaded Five Star as a third-party defendant, or it could have sought a comparison of the fault of Five Star and its subcontractors without joining them at all. See Brown v. Keill, 224 Kan. 195, 207, 580 P.2d 867, 876 (1978) (holding that the fault of all parties to the occurrence is determined “even though one or more parties cannot be joined formally as a litigant or be held legally responsible“). Lane did neither. It defended the Long lawsuit from January 2025 forward and then settled it. No factfinder compared fault. As in Great Plains, Lane has offered no reason it could not have brought its claims against Five Star in
Lane‘s primary argument in rebuttal is that “there will be a determination of the comparative fault of Long . . . in the original underlying action set for trial in July.” (Doc. 15 at 7.) Of course now, that argument is moot as the Long lawsuit has settled and there will be no determination of fault. The share of fault that matters under Paragraph 5 is Five Star‘s, and Five Star was never a party to the Long lawsuit. Therefore, whatever opportunity existed to compare Long‘s fault is now gone. Nor does it matter, as Lane argues, that Long himself was a party to the Long lawsuit. Five Star was not, and “a person who is not made a party to a comparative negligence case is not bound by the judgment” in it. Mathis, 242 Kan. at 791 (citing Eurich v. Alkire, 224 Kan. 236, 238, 579 P.2d 1207 (1978)). Whatever fault might have been allocated to Long in the Long lawsuit would not have bound Five Star, and so would not have supplied the apportionment on which Lane‘s indemnity claim depends. Long‘s presence in the first suit was no substitute for Five Star‘s.
Because the court applies the one-action rule to dismiss a claim, it must resolve the dispute the parties raise over whether the rule operates in federal court. Lane contends the rule is procedural and is displaced by
Finally, the court‘s analysis and holding on this point are confined to Count III. The one-action rule reaches a claim only to the extent its resolution requires a comparison of fault. Great Plains, 62 Kan. App. 2d at 225–26.
C. Counts II, IV, and V
That leaves Counts II, IV, and V.6 Lane observes that Five Star‘s motion is directed almost entirely at the indemnification provision, and that Lane‘s other claims rest on different obligations under the Subcontract. (Doc. 15 at 4 nn.3–4, 11 n.8.) The court agrees. Three of Five Star‘s four primary contentions concern Paragraph 5‘s indemnification language, and the fourth reaches only claims requiring a comparison of fault. Five Star‘s assertion that “[a]ll of Lane‘s claims depend
Count II alleges breach of the duty to defend. Paragraph 5 states that duty separately from the duty to indemnify: Five Star agreed that “[i]f requested by [Lane], [Five Star] will defend any such Claims at the sole cost and expense of [Five Star].” (Doc. 10-1 ¶ 5.) Lane alleges that it tendered the defense of the Long lawsuit and that Five Star refused. (Doc. 26 ¶¶ 31–32.) Five Star does not argue that the claims asserted against Lane in the Long lawsuit fall outside the scope of that promise, does not address when a contractual duty to defend arises, nor explains why that duty should rise or fall with the duty to indemnify. The court will not construct arguments on Five Star‘s behalf. Count IV alleges that Five Star failed to procure insurance and to name Lane as an additional insured, as Paragraph 3 required. Five Star‘s own brief describes Paragraph 3 as “requir[ing] Five Star to maintain commercial general liability, automobile liability, and umbrella/excess liability coverage and to name Lane as an additional insured.” (Doc. 10 at 11.) Five Star advances no argument that Lane has failed to state a claim for breach of that requirement. Similarly, Count V alleges that Five Star breached obligations concerning safety compliance. (Doc. 26 ¶¶ 56–61.) Five Star‘s only engagement with those allegations is its assertion that “Lane has not alleged that any breach of those obligations caused Bell to strike Long‘s truck.” (Doc. 10 at 7.) That is an insufficiently developed challenge to Count V. The party moving to dismiss bears the burden of showing that the complaint fails to state a claim, and this court does not develop arguments a party has left undeveloped. See United States v. Wooten, 377 F.3d 1134, 1145 (10th Cir. 2004). Because Five Star has offered no articulable argument directed at Counts II, IV, and V, its motion is denied as to those counts. Nothing in this order forecloses a properly supported challenge to them at a later stage.
IV. Conclusion
THEREFORE, Defendant‘s motion to dismiss (Doc. 10) is GRANTED IN PART and DENIED IN PART. The motion is GRANTED as to Count III. The motion is DENIED as to Counts II, IV, and V. Regarding Count I, the court does not decide the ultimate scope of Five Star‘s obligations under Paragraph 5 beyond concluding that, by force of the safe-harbor clause, those obligations do not extend to Lane‘s own negligence.
IT IS SO ORDERED. Dated this 31st day of August, 2026.
s/ John W. Broomes
JOHN W. BROOMES
CHIEF UNITED STATES DISTRICT JUDGE