Gulf Insurance v. Hi-Voltage Wire Works, Inc.

MEMORANDUM AND ORDER

Plaintiff Gulf Insurance Company has asked the Court to grant summary adjudication against Defendant Steve K. Zinnel (“Defendant”) on its claims for express indemnity and breach of contract. For the reasons stated below, Plaintiffs motion is DENIED.

BACKGROUND

The present dispute arises out of a general agreement of indemnity (hereinafter the “Indemnity Agreement”) involving Plaintiff and Defendant. The Indemnity Agreement was entered into on July 15, 1996. (Mot. for Summ. J., Ex. B at 1.) According to Plaintiff, the Indemnity Agreement was partially based on Plaintiffs execution of bonds in favor of Defendant. (Mot. for Summ. J. at 4:7-8.)

On January 12, 2000, two third-party subcontractors brought an action against a bond issued on Defendant’s behalf. (Mot. for Summ. J. at 5:13-14.) Plaintiff allegedly incurred $496,024.77 in expenses and losses in settling this third-party lawsuit. (PL’s Mot. for Summ. J. at 8:23-24, 9:12.) Plaintiff claims that by virtue of the Indemnity Agreement, Defendant is liable for the resulting expenses and losses.

On June 25, 2003, Plaintiff brought suit against Defendant for (1) express indemnity, (2) specific performance,…