Union Pacific Railroad Company v. Caballo Coal Company; Caballo Coal Company v. Union Pacific Railroad Company, 2011 WY 24

Summary

The Wyoming Supreme Court held that Union Pacific Railroad Company was not entitled to indemnification from Caballo Coal Company for payments made to an injured employee because the applicable indemnity agreement required negligence, wrongful conduct, or an omission by Caballo, which Union Pacific had not established. The court also held that the district court improperly granted summary judgment against Caballo on its counterclaim for attorney fees without a motion, notice, or opportunity to be heard. The judgment was affirmed in part and reversed and remanded in part.

Holdings

1. Under the parties' indemnity agreement, Union Pacific had to establish that Caballo Coal's negligence, wrongful act, or omission caused the loss for which indemnification was sought. Because neither the underlying action nor Union Pacific's indemnification action alleged that Caballo Coal caused Riecke's injuries, Union Pacific could not recover indemnification.
2. The issue was moot because Union Pacific could not establish the condition precedent of Caballo Coal's negligence, wrongful act, or omission and therefore could not prevail on its indemnification claim regardless of the reasonableness of its settlement.
3. The district court violated W.R.C.P. 56 and deprived Caballo Coal of due process by granting summary judgment on its counterclaim without a pending motion, notice, or an opportunity to present evidence and argument.

Questions Presented

1. Whether Caballo Coal's lack of a duty to Union Pacific's employee supported summary judgment against Union Pacific's indemnification claim.
2. Whether Union Pacific was entitled to partial summary judgment on the reasonableness and good faith of its settlement with Riecke.
3. Whether the district court could sua sponte grant summary judgment against Caballo Coal's counterclaim for attorney fees and costs without a motion, notice, or opportunity to be heard.

Disposition

reversed_and_remanded