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Jacobs Constructors, Inc. v. NPS Energy Services, Inc.

In case involving indemnity contract between a contractor and subcontractor, order granting partial summary judgment to plaintiff subcontractor reversed because contractor's duty to defend subcontractor in contractual indemnity suits was not spelled out in unambiguous terms; summary judgment in favor of insurance company affirmed because court correctly held that subcontractor's umbrella policy afforded an "additional insured" like contractor more restricted coverage than a "named insured."

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Argued March 1, 2001

OPINION OF THE COURT

In these consolidated declaratory judgment actions, we are presented with disputes concerning two contracts: an indemnification agreement between a contractor and a subcontractor, and a subsequent insurance contract between the contractor and an insurance company. On appeal, there are three primary issues: (1) whether NPS Energy Services is obligated to defend Jacobs Constructors, Inc., pursuant to their subcontract, in a declaratory judgment action in which a third party, Pennzoil Products Company, is seeking contractual indemnification from Jacobs for work-related injuries and deaths; (2) whether NPS Energy fulfilled its contractual obligation to name Jacobs as an additional insured on the National Union Fire Insurance Company of Pittsburgh insurance agreement; and (3) whether the insurance agreement between National Union and Jacobs, which covers Jacobs as an “additional insured,” requires National Union to indemnify and defend Jacobs in the declaratory judgment action between Pennzoil and Jacobs.

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