Jacobs Engineering Group Inc. v. ConAgra Foods, Inc.Annotate this Case
In this action for indemnification, the Supreme Court affirmed the judgment of the district court awarding Jacobs Engineering Group Inc. the full amount of settlement payments in a lawsuit brought by employees of ConAgra Foods, Inc. against Jacobs arising from an explosion at a ConAgra plant, holding that the district court’s judgment was not in error.
ConAgra contracted with Jacobs, an engineering firm, to provide engineering services. The engineering agreement contained mutual indemnification provisions. After the explosion at the ConAgra plant, dozens of employees sued Jacobs. Jacobs sought contractual indemnification from ConAgra, but ConAgra declined. Jacobs defended against and settled the claims then sued ConAgra for indemnification. The jury awarded Jacobs $108.9 million, and the court entered judgment on the verdict. The Supreme Court affirmed, holding (1) the trial court did not err in finding that Jacobs had standing as the real party in interest; (2) the court did not err in finding ConAgra’s workers’ compensation immunity inapplicable; (3) Jacobs established that ConAgra’s refusal to indemnify breached the parties’ contract; and (4) the court did not err in declining to reduce the jury’s award of damages.