U.S. Fire Ins. v. Arrowood Indemnity CA1/4

I.

FACTUAL AND PROCEDURAL

BACKGROUND

Union Electric Company entered into two contracts with Bechtel Corporation to build power-generating units at a Union Electric power plant in Labadie, Missouri. The contracts required Bechtel to engineer, construct, and start up these units. Both contracts contained an identical indemnity clause, which provided: “Bechtel hereby assumes entire responsibility and liability for any and all damage, loss or injury, including death, of any kind or nature, whatever, to person or persons, or property or properties, caused by, resulting from or arising out of the performance of the work provided for in this Contract. Bechtel agrees to defend any suit or action brought against [Union Electric] based upon the foregoing injury or damage, and agrees further to pay all costs and expenses, including legal fees in connection with such suit or action; provided, however, that Bechtel’s aforesaid indemnity and hold harmless agreement shall not be applicable to any loss, expense, damage, demand or claim or liability caused by the sole negligence of [Union Electric], its officers, representatives or employees; and provided further, that Bechtel’s aforesaid…