Opinion ID: 65002
Heading Depth: 2
Heading Rank: 4

Heading: Indemnity Under Rowan/HES Agreement

Text: HES contends that the types of liability actually addressed in the Rowan/HES Agreement make clear that liability for specialized aviation services was never intended as a subject of the Rowan/HES Agreement. Further, HES contends that the term Company in the Rowan/HES Agreement applies only to Rowan, and to include subsidiary and affiliated companies in the definition of Company would lead to superfluous text in the agreement. HES adds that because the Rowan/HES Agreement would apply only if HES and Rowannot Erawere both working for the same customer on the same job-site, the Rowan/HES Agreement is inapplicable to the facts of this case. The Rowan/HES Agreement provides that Rowan, for and on behalf of itself and its subsidiary and affiliated companies, is referred to as Company in the agreement. Paragraph 2(b) expressly states that an indemnifying party's obligations contained in this agreement shall extend to the indemnified party, its parent, subsidiary, and affiliated companies. Therefore, Era, as a subsidiary of Rowan, is also entitled to any protections of the agreement. The introductory paragraphs indicate that the parties knew that each party was in the business of supplying goods or services, and as to Rowan and Era, it provides that Company is engaged in the business of supplying goods and services to such customers utilizing equipment and property owned by or under the management of Company or its subsidiary or affiliated companies. The parties, therefore, clearly anticipated that a broad range of goods and services provided by Rowan and Era would be within the scope of the agreement. We affirm the judgment on this issue.