Simon was the general contractor for an Interstate 80 construction project between Cheyenne and Pine Bluffs. S&J Signs, Inc. served as a subcontractor under a contract requiring S&J to maintain insurance naming Simon as an additional insured and to protect the project with lights, barriers, supports, and guards.
Two tractor-trailer drivers filed separate lawsuits alleging that steep edge drop-offs and a lack of warning signs or barriers caused their crashes. Both complaints named Simon and S&J as defendants, alleging negligence for failing to warn drivers and erect sufficient barriers.
Cincinnati declined to defend Simon, arguing the underlying lawsuits did not allege that S&J’s acts or omissions caused the injuries. Liberty Mutual Insurance Company, Simon’s own insurer, filed a declaratory judgment action in federal court seeking a determination that Cincinnati was contractually obligated to provide and pay for the defense.
The Tenth Circuit, applying Wyoming law, held that Cincinnati’s duty to defend was triggered because the underlying complaints alleged the injuries were caused at least in part by S&J’s failure to provide warnings and barriers during ongoing operations.
The court rejected Cincinnati’s argument that the claims involved independent duties, noting that both defendants were blamed for various acts and omissions. The court held there was a sufficient causal connection between S&J’s work and the drivers’ injuries to require a defense.
Cincinnati also argued that the accidents occurred after S&J’s work was complete, falling outside coverage for ongoing operations. The court held the wrecks occurred prior to S&J’s completion of its contracted work.
The court further rejected Cincinnati’s contention that the subcontract limited coverage, holding that the alleged harm-causing actions arose out of or in connection with S&J’s work. The court affirmed the district court’s grant of summary judgment for Liberty Mutual and denial of Cincinnati’s cross-motion.