Ohio Farmers Insurance Co. v. JEM Contracting, Inc.

Summary

The Montana Supreme Court affirmed an order granting Ohio Farmers Insurance Company partial summary judgment on the pleadings in its action seeking indemnification for attorney fees and costs incurred in prior litigation. The court held that the indemnity agreements permitted Ohio Farmers to seek indemnification for lawful and recoverable expenses within the agreements’ specified categories. It left issues concerning the amount of damages and whether particular expenses related to non-indemnifiable conduct for the trier of fact.

Holdings

1. The indemnity agreements permit Ohio Farmers to seek indemnification from JEM for lawful and recoverable expenses falling within the agreements' enumerated categories.
2. The indemnity agreements did not violate Montana law because they did not provide carte blanche indemnification for Ohio Farmers' fraud, willful injury, or violation of law.
3. The Court did not decide whether the indemnity agreements permit indemnification for Ohio Farmers' own negligence.

Questions Presented

1. Whether the District Court erred in granting Ohio Farmers partial judgment on the pleadings regarding its right to seek indemnification under the indemnity agreements.
2. Whether the indemnity agreements were unlawful under Montana law because they could require indemnification for Ohio Farmers' own fraud, willful injury, or violation of law.
3. Whether the indemnity agreements were ambiguous regarding indemnification for Ohio Farmers' own negligence.

Disposition

affirmed