Release relieved duty to indemnify, but not defend
September 28, 2012In Cambridge Integrated Services Group v. Concentra Integrated Services, after reminding that a district court located in a state does not get deference in making an Erie guess about that state’s law, the Fifth Circuit examined the effect of a release obtained by an indemnitor for potential claims against its indemnitee. No. 11-31032 (Sept. 26, 2012). The Court found that the release precisely matched the terms of the indemnitor’s obligations to the indemnitee, and thus extinguished its duty to indemnify against such claims in ongoing litigation. As to the duty to defend, however, the Court found summary judgment improper as issues about the claims “remained to be clarified through litigation.” Id. at 10.