JPI Westcoast Construction, L.P. v. RJS & Associates, Inc.

INTRODUCTION

Appellant JPI Westcoast Construction, L.P. (JPI), the general contractor on a large construction project, hired respondent RJS & Associates, Inc. (RJS), as a subcontractor on a phase of the project. The construction contract between JPI and RJS contained an indemnity clause in favor of JPI. During the course of the work undertaken by RJS, a worker was killed in an accident. In the underlying action, the worker’s family sued JPI, RJS and others for wrongful death. RJS’s insurers assumed defense of the action on behalf of JPI and RJS. A jury found that JPI was 20 percent at fault for the accident and RJS was 70 percent at fault, and awarded judgment in the amount of $6,853,284 in favor of the worker’s family. After trial, the family settled with JPI and RJS for a total of $4.9 million.

This appeal arises from the subsequent round of litigation between JPI and its primary insurance carrier, Transcontinental Insurance Company (Transcontinental) and RJS and its excess carrier, Great American Insurance Company (Great American), over contributions to the settlement of the underlying action. On stipulated facts, the trial court ruled in favor of RJS and Great…