Harleysville Ins. Co. v. Physical Distrib. Serv., et al, No. 12-1713 (8th Cir. 2013)
Annotate this CaseThis case involved the interpretation of two contractual provisions under Minnesota law: an indemnification clause in a contract between PDSI and Miller and an insurance contract between Harleysville and PDSI which extended insurance coverage to PDSI's indemnification of third parties for tort liability caused, in whole or in part, by PDSI or by those acting on its behalf. The court agreed with the district court's finding that a PDSI employee's suit fell squarely within the indemnity provision of the 1989 Agreement between PDSI and Miller. The court also agreed with the district court's interpretation of the insurance agreements as requiring Harleysville to cover Miller's settlement of the employee's claims. Further, the court concluded that the undisputed facts established as a matter of law that PDSI or those acting on its behalf at least partly caused the employee's bodily injury within the terms of the Harleysville policy. Accordingly, the court affirmed the judgment.
Court Description: Civil case - Contracts. The contract between Physical Distribution and Miller Transporters required Physical Distribution to indemnify Miller for liability it had incurred from an injury to a leased employee; the insurance contract between Physical Distribution and Harleysville, which extended coverage to Physical Distribution's indemnification of third parties for tort liability caused in whole or in part by Physical Distribution or those acting on its behalf, required Harleysville to cover the resulting cost to Physical Distribution. Judge Colloton, dissenting.
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