Uniwest Construction, Inc. v. Amtech Elevator Services, Inc.; Amtech Elevator Services, Inc. v. Uniwest Construction, Inc.; Federal Insurance Company v. Amtech Elevator Services, Inc., 281 Va. 509

Summary

The Supreme Court of Virginia granted rehearing and remanded the case for the circuit court to determine the scope of liability under subdivisions E-4 and E-7 of Amtech's commercial umbrella insurance policy. The court directed consideration of Amtech's liability for failing to defend and indemnify Uniwest, AIU's liability, and any damages including Uniwest's settlement and defense costs. The court withdrew Part II(D) of its prior opinion and clarified that Amtech's duty to defend and indemnify Uniwest was established to the extent caused by Amtech's negligent acts or omissions.

Holdings

1. When the circuit court fails to decide preserved legal and factual questions because it erroneously resolves a threshold coverage issue, the Supreme Court remands for the circuit court to consider those questions in the first instance.
2. Amtech had a duty to defend and indemnify Uniwest to the extent that the underlying liability was caused in whole or in part by negligent acts or omissions of Amtech.
3. On remand, the circuit court must determine whether and to what extent AIU is liable under Subdivisions E-4 and E-7 and, if Uniwest and its insurers are entitled to damages, must consider both Uniwest's settlement with Bruce and Stinson and qualifying defense costs not already paid by Amtech and its insurers.

Questions Presented

1. Whether the circuit court should determine whether the underlying Bruce and Stinson claims gave rise to liability arising out of operations conducted by Amtech or on Amtech's behalf under Subdivision E-7.
2. Whether a finding of relative liability is required under Subdivision E-7.
3. What extent of liability Amtech and AIU have for failing to defend and indemnify Uniwest under Subdivisions E-4 and E-7.
4. Whether any damages award should include Uniwest's settlement with Bruce and Stinson and the cost of Uniwest's defense, to the extent those costs were not already paid.

Disposition

remanded