XL Specialty Insurance v. Kiewit Offshore Services, Ltd.
This memorandum opinion addresses cross-motions for summary judgment in a case originating from an explosion that killed two workers, one each from Kiewit Offshore Services, LTD (general contractor) and R.B.T. Welders, Inc. (subcontractor). Relatives of the deceased workers filed a negligence lawsuit. XL Specialty Insurance Company, RBT's insurer, initiated a declaratory judgment action against Kiewit, denying a duty to defend or indemnify. Kiewit, in turn, sought indemnification from RBT and coverage from XL. The Court granted Kiewit's motion for summary judgment in part, holding RBT must indemnify Kiewit for a $4 million settlement payment, specific attorney's fees, and prejudgment interest, finding Kiewit faced potential liability and the settlement was reasonable. The Court denied Kiewit's claim for undocumented expenses and denied XL's motion for summary judgment asserting statutory employer and borrowed servant defenses under workers' compensation laws for Kiewit, concluding these defenses were not applicable.