Liberty Mutual Insurance Co. v. Continental Resources, Inc.

MEMORANDUM

Liberty Mutual Insurance Company (“Liberty Mutual”) appeals the district court’s decision granting summary judgment in favor of Continental Resources, Inc. (“Continental”) and declaring that Liberty Mutual has a duty to protect, defend, and indemnify Continental as an additional insured against a wrongful death claim brought in Montana state court by an employee of Liberty Mutual’s insured, Pioneer Drilling Services (“Pioneer”). Liberty Mutual also appeals the denial of its cross-motion for summary judgment. We affirm.

We review de novo the grant or denial of summary judgment. Padfield v. AIG Life Ins. Co., 290 F.3d 1121, 1124 (9th Cir.2002). We also review de novo the insurance policy and the underlying contract between Pioneer and Continental, and we apply Montana law to the substantive issues of the case. See Fed. Ins. Co. v. Scarsella Bros., 931 F.2d 599, 602 (9th Cir.1991); Aceves v. Allstate Ins. Co., 68 F.3d 1160, 1163 (9th Cir.1995).

Although Montana’s Workers’ Compensation Act (the “Act”) prohibits indemnity agreements by employers, we conclude that it does not prohibit an employer’s agreement to provide liability insurance that will protect, defend, and…