Opinion ID: 624271
Heading Depth: 2
Heading Rank: 1

Heading: The 50% Indemnity Clause

Text: Both parties agree the district court mistakenly clarified its previous summary judgment order to state Continental should be liable for 50% of not only environmental liabilities associated with active plants which were sold to Crown pursuant to the SPA, but also of all liabilities associated with such plants. See Appellee's Br. at 15-16 (Crown agrees with Continental that Section 10.3(a)(iii) of the SPA is limited to certain `Environmental Liabilities' only, which are the subject of the JAMS Arbitration.... Continental is not required to indemnify Crown for nonenvironmental occupational exposure claims arising from food and beverage can plants still active and sold to Crown as part of the SPA....). Continental asks this court to vacate and remand the district court's opinion to the extent it makes this erroneous conclusion. Crown, however, argues no remand is necessary since the parties' positions are clear and in agreement on the matter. Under the Federal Rules of Civil Procedure, a district court's ruling should be reversed if the error affects the substantial rights of a party. See Fed.R.Civ.P. 61; see also, e.g., Tyler v. White, 811 F.2d 1204, 1207 (8th Cir.1987) (noting a reversible error is one which affects the substantial rights of a party). The district court's second order and opinion may affect Continental's financial future because it indicates Continental must indemnify Crown for 50% of all liabilities stemming from active plants sold to Crown. We find this possibility sufficient to conclude the court's order affects Continental's substantial rights. Accordingly, we vacate the district court's second Memorandum Opinion to the extent necessary to correct this error, and remand with instructions to clarify that the 50% indemnity provision only applies to environmental liabilities pursuant to Schedule 3.16, as agreed to by the parties.