OLD DOMINION IRON & STEEL CORP., A DELAWARE CORPORATION, APPELLANT,
v.
MARYLAND CASUALTY COMPANY, A MARYLAND CORPORATION, APPELLEE
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The court affirmed that Old Dominion's contractual indemnity obligation to Maryland Casualty for losses arising from Maryland Casualty's negligent inspection services was not limited by subsequent insurance policy limits agreed upon by the parties.
A contractual indemnity obligation to hold harmless an indemnitee from losses arising from the indemnitee's own negligence is not limited by subsequently agreed insurance policy limits when both contract provisions must be given effect.
[1] A contractual indemnity obligation assumed by one party to hold another harmless from losses arising from the other party's negligence is not limited by subsequently agre…
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Join FLexlaw to unlock all legal intelligenceOld Dominion contracted with Maryland Casualty to perform inspection services on Old Dominion's manufactured products. The contract contained two prov…
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ROBERT P. SMITH, Jr., Judge.
We affirm the circuit court’s partial summary judgment finding that appellant Old Dominion is or will be liable, by contract, to indemnify appellee Maryland Casualty for any loss by Maryland Casualty on account of its negligence in performing inspection services in connection with manufacturing activities of Old Dominion, as a result of which injury was sustained by a third party, claimant below. In discrete paragraphs the contract between Maryland Casualty and Old Dominion provided, first, that Old Dominion would indemnify Maryland Casualty and hold it harmless from all loss through any suit by another arising out of Maryland Casualty’s inspection of Old Dominion’s manufactured products, whether due to Maryland Casualty’s negligence or otherwise; and second, that Old Dominion would procure and maintain public liability insurance, “with limits of liability to be agreed upon,” which should “include contractual liability insurance against liability assumed under the hold harmless agreement.” We agree with the trial court that both paragraphs must be given effect, if possible, and therefore that Old Dominion’s contractually assumed liability for indemnity was not limited by any subsequent agreement by the parties on liability insurance limits.
AFFIRMED.
MILLS, C. J., and LARRY G. SMITH, J., concur.