Opinion ID: 2977801
Heading Depth: 4
Heading Rank: 2

Heading: Monetary Cap on Indemnification Obligation

Text: Liberty Mutual also asserts that interpreting Section 12 to exclude claims such as that by Elliott in the present litigation from the UTC Companies’ indemnification obligation is inconsistent with the $30 million cap on the UTC Companies’ indemnification obligation set forth in Section 16. According to Liberty Mutual, the total remaining coverage under the policies exhausted or otherwise impacted by the Agreement is $6,543,482. Liberty Mutual argues that “there would have been no reason to set the limit at a figure more than $23 million higher than the total coverage remaining.” (Appellant Br. 36.) However, the $30 million cap on the UTC Companies’ indemnification obligation set forth in Section 16 applies to the UTC Companies’ indemnification obligations under Sections 11, 12, and 13—it is not limited to Section 12. Thus, even if the UTC Companies’ indemnification obligation 16 under Section 12 could not exceed $6,453,482, the $30 million cap remains meaningful because the UTC Companies must indemnify Liberty Mutual in actions by other insurers seeking contribution, as well as in actions by former subsidiaries seeking coverage under certain limits of the 1985-1986 Policy.