Bell Lavalin Inc. v. Simcoe & Erie General Insurance

Simcoe and Erie General Insurance Co. et al. (“Simcoe”) insured Bell Lavalin, Inc. (“Bell Lavalin”) under a professional liability insurance policy. Bell Lavalin, the prime contractor of a North Slope Alaskan construction project, was sued by one of its subcontractors, Conam Alaska (“Conam”). The jury awarded Conam over $7,000,000 in damages. Bell Lavalin, through its receiver, sued Simcoe for indemnification. The district court granted summary judgment in favor of Simcoe. We have jurisdiction under 28 U.S.C. § 1291 and we affirm.

I. BACKGROUND

F. Robert Bell & Associates (“Bell”) and Lavalin, Inc. (“Lavalin”) formed Bell Lavalin, an Alaska corporation, to perform engineering and construction work in Alaska. Simcoe insured Bell Lavalin under a primary and excess professional liability insurance policy.

In 1984, Bell Lavalin entered a contract with Atlantic Richfield Company (“ARCO”) to design and construct four crude oil tanks on the North Slope of Alaska. Bell Lavalin subcontracted to Conam all construction services and materials necessary to construct the project.

As winter approached, the project quickly fell behind schedule. In August 1985, Bell Lavalin, ARCO, and Conam…