Westlake Chlor-Vinyls Corporation, formerly known as Axiall Corporation, and Westlake Natrium LLC, formerly known as Eagle Natrium, LLC v. IPI, Inc. and Matthew Joseph Taylor
CourtWest Virginia Supreme Court
Date FiledNovember 12, 2026
Docket24-183
StatusPublished
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Full Opinion
IN THE SUPREME COURT OF APPEALS OF WEST VIRGINIA
September 2026 Term FILED
November 12, 2026
released at 3:00 p.m.
No. 24-183 C. CASEY FORBES, CLERK
SUPREME COURT OF APPEALS
OF WEST VIRGINIA
WESTLAKE CHLOR-VINYLS CORPORATION, formerly known as AXIALL
CORPORATION, and WESTLAKE NATRIUM LLC, formerly known as EAGLE
NATRIUM LLC,
Petitioners,
v.
IPI, INC., and MATTHEW JOSEPH TAYLOR,
Respondents.
Appeal from the Intermediate Court of Appeals
No. 22-ICA-164
(Circuit Court of Marshall County, Civil Action No. 18-C-14)
AFFIRMED, IN PART, REVERSED, IN PART, AND REMANDED
Submitted: October 13, 2026
Filed: November 12, 2026
Amy Smith, Esq. Zachary J. Rosencrance, Esq.
Steptoe & Johnson PLLC Peter G. Markham, Esq.
Bridgeport, West Virginia J. Tyler Barton, Esq.
Bowles Rice LLP
William D. Wilmoth, Esq. Charleston, West Virginia
Steptoe & Johnson PLLC
Wheeling, West Virginia Counsel for Respondents
John R. Callcott, Esq.
Steptoe & Johnson PLLC
Morgantown, West Virginia
Counsel for Petitioners
CHIEF JUSTICE BUNN delivered the Opinion of the Court.
SYLLABUS BY THE COURT
1. “On appeal of a decision from the Intermediate Court of Appeals of
West Virginia, the Supreme Court of Appeals of West Virginia applies a de novo standard
of appellate review to a circuit court’s entry of summary judgment.” Syllabus Point 1,
Moorhead v. W. Va. Army Nat’l Guard, 251 W. Va. 600, 915 S.E.2d 378 (2025).
i
BUNN, Chief Justice:
Petitioners Westlake Chlor-Vinyls Corporation and Westlake Natrium, LLC
(collectively, “Westlake”) appeal the January 30, 2024 opinion of the Intermediate Court
of Appeals (“ICA”) vacating, in part, and remanding the order of the Circuit Court of
Marshall County, that had entered summary judgment on their behalf. Specifically, the
circuit court, applying Pennsylvania law, found that Respondent IPI, Inc., (“IPI”) (1) had
breached interrelated indemnity agreements with Westlake when it filed and pursued suit
against Westlake for property damages to its equipment sustained on Westlake’s property
as a result of a chlorine gas release; and (2) had a duty to indemnify Westlake against
Respondent Matthew Joseph Taylor’s personal injuries stemming from the same incident.
The circuit court granted summary judgment concluding that the parties had agreed that
IPI would indemnify Westlake against the types of claims raised in the respondents’
lawsuit even where the damages were alleged to be attributable, in part, to Westlake’s
own negligence. In reviewing the parties’ agreements de novo, the ICA concluded that the
entry of summary judgment was improper and remanded the matter for further
proceedings.
We first conclude that the ICA erred in reviewing one indemnification
provision to the exclusion of the other but find the error of little practical consequence
insofar as they articulate the same scope of indemnity. We next affirm the ICA’s
conclusion that the indemnity provisions are sufficiently unequivocal under Pennsylvania
1
law in requiring IPI to indemnify Westlake against its own negligence, generally. While
we agree with the ICA that there are factual issues remaining such that remand to the
circuit court is appropriate, we limit the issues to development regarding any parol
evidence that would assist in analyzing the ambiguities presented by the indemnity
agreements.
I. FACTUAL AND PROCEDURAL HISTORY
The legal dispute before us arises from the service agreements between the
parties and personal injuries resulting from a 2016 chemical leak while IPI workers,
including IPI’s president, Mr. Taylor, were on site at Westlake’s chemical plant in New
Martinsville, West Virginia, (hereinafter the “Natrium plant”) performing power washing
and industrial painting services pursuant to those service agreements.1
Working under a master services agreement—the Agreement for Onsite
Services (“AOS”)—and a project-specific agreement—the Purchase Order (“PO”)—IPI
1
Westlake Chlor-Vinyl Corporation/Westlake Natrium, LLC are successors to the
service agreements with IPI at issue in this appeal. The service agreements were initially
executed in 2007 between IPI and PPG Industries, Inc. In 2013, Axiall Corporation and
Eagle Natrium, LLC acquired the plant and IPI signed a consent to transfer. Axiall
Corporation, the parent corporation to Eagle Natrium, owned the plant at the time of the
chemical leak at issue and executed the purchase order then in effect. The complaint
alleges that Westlake Chlor-Vinyl Corporation and Westlake Natrium, LLC acquired the
plant from Axiall and Eagle Natrium in 2016 shortly after the chemical leak. No party
contends before this Court that the agreements are not binding on them. While we
acknowledge that Axiall Corporation/Eagle Natrium owned the plant at the time of the
alleged injuries and not Westlake, we nonetheless use “Westlake” to avoid confusion.
2
workers and Mr. Taylor were painting and power washing a large chemical storage tank
at the Natrium plant on August 27, 2016. That day, in a different area of the plant, a
railcar that had recently been returned to service ruptured and released toxic chlorine gas
throughout the plant (hereinafter “the Railcar Release”). Mr. Taylor testified in his
deposition that he visually observed the cloud of green gas while working atop a manlift
and put his escape respirator on, removing it long enough to alert the other workers onsite
to do the same. He further contended that there was no siren or other warning alerting
them to the danger and that, when trying to exit the area for their safety, they were met
with a locked gate, prolonging their exposure. Mr. Taylor asserts he “struggled” to get to
the onsite medical clinic, was then transported by ambulance to Reynolds Memorial
Hospital,2 and ultimately airlifted to Ruby Memorial Hospital in Morgantown, West
Virginia, for treatment of chlorine gas poisoning. IPI contends its equipment oxidized as a
result of the gas exposure, which ruined and/or significantly diminished its use
expectancy.
On January 29, 2018, IPI and Mr. Taylor instituted the underlying action
against Westlake for, among other things, personal injuries and property damages
resulting from oxidization of equipment arising from the August 27, 2016 chlorine gas
2
Mr. Taylor further alleges that over an hour passed before an ambulance was
called to transport him.
3
leak.3 Westlake counterclaimed for breach of contract and express indemnity, contending,
in relevant part, that under the provisions of the AOS and the terms and conditions of the
PO, IPI had a duty to indemnify Westlake for Mr. Taylor’s claims and had breached the
AOS and PO agreements by filing and pursuing the lawsuit. Westlake’s counterclaim
similarly alleges that it did not do, or fail to do, anything that caused the chlorine gas
release.
The indemnity clause of the AOS provides in pertinent part:
[IPI] assumes the risk of all damages, losses, costs and
expenses, and agrees to indemnity, defend and hold harmless
[Westlake], their directors, officers, agents, and employees
from and against any and all claims, liability, damage, loss,
penalties, fines, cost and expense of any kind whatsoever
which may accrue to or be sustained by [Westlake], their
directors, officers, agents or employees, arising out of this
Agreement and/or the Services, including, without limitation,
for the death of or injury to persons or destruction of property
involving [IPI], its employees, agents and representatives,
sustained in connection with performance of the Services,
arising from any cause whatsoever (including, without
limitation, injuries resulting from failure of or defect in any
equipment, instrument or device supplied by [Westlake] or
their employees to [IPI], its employees, agents or
representatives at the request of [IPI], its employees, agents or
representatives), except to the extent arising out of the sole
negligence or willful misconduct of [Westlake] or its
employees acting within the scope of employment.
A second indemnity clause is incorporated into the August 2016 PO through associated
3
The complaint also references a second gas leak occurring on October 8, 2016
that is not at issue on appeal.
4
Terms and Conditions and into the AOS4 (hereinafter “T&C”) which provides:
[IPI] assumes the risk of all damage, loss, costs and expense,
and agrees to indemnify, defend and hold harmless
[Westlake], its officers, employees and representatives, from
and against any and all damages, claims, demands, expenses
(including reasonable attorneys’ fees), losses or liabilities of
any nature whatsoever, and whether involving injury or
damage to any person (including employees of [IPI] and
[Westlake]) or property, and any and all suits, causes of action
and proceedings thereon arising or allegedly arising from or
related to the subject matter of this Purchase Order, except
where such injury or damage was caused by the sole
negligence of [Westlake]. This indemnity shall survive the
termination or cancellation of this Purchase Order, or any part
hereof.
Westlake filed a motion for partial summary judgment on its counterclaims
for express indemnity and breach of contract. First observing that the parties’ agreement
contained a valid and enforceable choice of law clause, the circuit court concluded that
Pennsylvania law applied to its interpretation of the contracts’ indemnification
provisions. The circuit court next determined that the indemnity provisions at issue
satisfied Pennsylvania law which requires any indemnification against a party’s own
negligence to be clear and unequivocal. It then summarily concluded that IPI and Mr.
4
The August 2016 PO contains a clause incorporating by reference a document
including terms and conditions for all purchase orders, and the AOS contains a clause
incorporating each PO into the AOS “and is made a part hereof with the same force and
effect as though set forth in full above the signatures affixed hereto.” No party raises
before this Court that the T&C was improperly incorporated into the PO, that each PO is
improperly incorporated by reference into the broader AOS, or that they are not otherwise
subject to these terms.
5
Taylor’s claims against Westlake fell within the scope of the indemnity provisions of both
the AOS and T&C because 1) the damages arose out of the services being performed by
IPI and Mr. Taylor under the AOS and the August 2016 PO, and 2) the Railcar Release
constituted “a failure of or defect in equipment” under the AOS language. Accordingly,
by order dated September 12, 2022, the circuit court granted Westlake’s motion for partial
summary judgment on its counterclaims for express indemnity and breach of contract,
with the associated damages in defending the claims to be determined at a later hearing.
The circuit court certified that its decision was a final judgment, that there was no just
cause for delay, and that the order was immediately appealable for purposes of Rule 54(b)
of the West Virginia Rules of Civil Procedure.5
IPI appealed that order to the ICA. The ICA affirmed the circuit court’s
determination that Pennsylvania law applied to the interpretation of the indemnity
agreements. However, the ICA concluded that the two indemnity provisions were in
conflict and that, as a result, the circuit court erred in not referring to the priorities clause
of the AOS which indicates that the AOS controls in the event of a conflict:
5
No party challenges the propriety of the circuit court’s Rule 54(b) certification.
Observing that damages relating to the expenses associated with defending the lawsuit
remain outstanding but are ministerial in nature under these circumstances, we see no
indication that the circuit court’s certification was “clearly unreasonable.” See Hopkins v.
Sutphin, 253 W. Va. 372, 931 S.E.2d 772, 783 (2026) (“[T]he circuit court’s certification
is entitled to substantial deference, disrupted only when ‘clearly unreasonable.’” (quoting
Syl. Pt. 1, in part, Province v. Province, 196 W. Va. 473, 473 S.E.2d 894 (1996))).
6
If there are any terms or conditions in [a PO] which are
inconsistent with or in conflict with [the AOS], the terms and
conditions of the various documents constituting [the AOS]
shall control in the following priority and order: the front of
the [PO]; [the AOS]; and, then the reverse side terms and
conditions of the [PO].
Applying only the AOS’s indemnity clause, the ICA then concluded that the
circuit court was correct in determining that the AOS clearly and unequivocally
demonstrated an intent to indemnify Westlake even against its own negligence, at least to
some degree. However, it found that the circuit court had failed to adequately explain
how the claims related to the Railcar Release fell within the scope of the indemnity
provisions and remanded for the circuit court to develop its analysis. The ICA noted that
the circuit court’s reliance on the “failure of or defect in any equipment” language to find
the claims fell within the indemnity agreement appeared erroneous without additional
findings because the circuit court had taken that language out of its context in the AOS
indemnity provision.
The ICA decision further directed the circuit court, if it concluded that the
claims fell within the scope of the AOS indemnity provision, to then consider whether
genuine issues of material fact existed relative to the stated exceptions to its application
including Westlake’s sole negligence and willful misconduct, and to likewise consider
7
whether gross negligence would undercut IPI’s duty to indemnify Westlake.6
II.
STANDARD OF REVIEW
“On appeal of a decision from the Intermediate Court of Appeals of West
Virginia, the Supreme Court of Appeals of West Virginia applies a de novo standard of
appellate review to a circuit court’s entry of summary judgment.” Syl. Pt. 1, Moorhead v.
W. Va. Army Nat’l Guard, 251 W. Va. 600, 915 S.E.2d 378 (2025). From an appellate
standpoint, we apply the same summary judgment standards as the circuit court under
Rule 56 of the West Virginia Rules of Civil Procedure. Williams v. Precision Coil, Inc.,
194 W. Va. 52, 58, 459 S.E.2d 329, 335 (1995). That is, we review de novo whether
“there is no genuine issue of fact to be tried and inquiry concerning the facts is not
desirable to clarify the application of the law.” Syl. Pt. 3, in part, Aetna Cas. & Sur. Co. v.
Fed. Ins. Co., 148 W. Va. 160, 133 S.E.2d 770 (1963). We draw all inferences in favor of
the nonmoving party in evaluating a motion for summary judgment, cognizant that the
court’s “function at the summary judgment stage is not ‘to weigh the evidence and
determine the truth of the matter but to determine whether there is a genuine issue for
6
Though not relevant to our analysis, the ICA also directed the circuit court to
evaluate the competency of the evidence submitted by IPI in support of its response to the
motion for partial summary judgment, to consider the possible effect, if any, of the West
Virginia comparative fault statute to the analysis, and to be mindful that, under
Pennsylvania law, the party seeking indemnification (Westlake) bears the burden of proof
relative to the scope of indemnity, while IPI would bear the burden of proving any
exception to its application, akin to an affirmative defense.
8
trial.’” Precision Coil, 194 W. Va. at 59, 915 S.E.2d at 336 (quoting Anderson v. Liberty
Lobby, Inc., 477 U.S. 242, 249 (1986)).
III.
DISCUSSION
Westlake appeals from the decision of the ICA to the extent it applied the
AOS to the exclusion of the T&C and remanded for additional development of the scope
of the duty to indemnify and its exceptions, both of which it contends are unnecessary
because Westlake is entitled to summary judgment on its express indemnity and breach of
contract counterclaims under the plain language of the AOS and T&C indemnity
provisions.
No party contests that Pennsylvania law applies to the interpretation of this
contract, nor does any party contest that the indemnity provisions clearly and
unequivocally provide for IPI to indemnify Westlake against some degree of Westlake’s
own negligence. Both the circuit court and the ICA made the same determination on these
points, and we do not disturb them on appeal. Instead, Westlake assigns error to the ICA’s
analysis in resorting to the priorities provision to find the AOS’s indemnity provision
applicable to the exclusion of the T&C indemnity provision and secondarily assigns error
to the ICA’s conclusion that the circuit court’s order failed to articulate its reasons for
finding the claims asserted fell within the scope of the AOS’s indemnity provision.
9
Upon review, the circuit court was correct to read the two indemnity
provisions as complementary, and the ICA erred insofar as it identified a conflict between
the two.7 We conclude that the scope of the duty to indemnify under both indemnity
provisions hinges on whether the provisions contemplate IPI’s mere presence on site as
sufficient to trigger the duty; and whether the parties intended, through the purchase of
insurance or otherwise, to encompass claims where the harm is incidental to IPI’s
presence alone and not a result of IPI’s own negligence.
We generally agree with the ICA’s conclusion that the circuit court’s order
insufficiently analyzes the nuances of the indemnity provisions and the claims for which
Westlake seeks indemnity from IPI. However, while the ICA remanded the matter for an
order sufficient for appellate review of the circuit court’s legal interpretation, we instead
remand for the circuit court to allow development of parol evidence to clarify the parties’
intent. Remand for these factual findings is necessary because the scope of the duty to
indemnify, and the applicability of any exceptions, is ambiguous as applied to the claims
at issue. Accordingly, we affirm the ICA’s remand to the circuit court as modified by the
directions of this Court.
A. The AOS and T&C are intended to be read together and are not inconsistent or
in conflict as applied to these claims.
7
As explained below, the error has no real impact on the overall analysis of the
duty to indemnify and the exceptions thereto, a fact conceded by both parties at oral
argument.
10
The circuit court appears to have applied the AOS and T&C together to
form the scope of indemnification, positing its conclusion that these claims fell within its
ambit because IPI was required to indemnify Westlake under either or both the AOS or
the T&C. Notably, the circuit court never undertook a conflict analysis of the two
indemnity provisions because the parties never asked it to. Neither the motion for partial
summary judgment nor the response thereto contends that there was a conflict between
the AOS and the T&C as applied to these claims or the indemnity at issue. Rather,
Westlake argued that both provisions contemplated indemnity arising from damages
sustained “in connection with their performance of services under the agreements” while
IPI contended only that the damages sustained do not arise from the services performed.
The circuit court summarily concluded that “all such damages [from the Railcar Release]
arose out of the service being performed or otherwise being provided by IPI and Mr.
Taylor pursuant to [the PO]” but then later made the finding that “[t]he crack in 1702
leading to the Railcar Release, constitutes a ‘failure of or defect in any equipment
instrument, or device . . .’ under the AOS.” The equipment defect language appears only
in the AOS, not the T&C, which seemingly prompted the conflict argument before the
ICA. Irrespective of what prompted the ICA to undertake the conflicts analysis, we
ultimately conclude that it is inconsequential to the issues on appeal. As the parties
conceded at oral argument, whether the AOS or the T&C applies has no real effect on the
analysis relative to whether the claims arise from or are related to the performance of
IPI’s services for Westlake or, relatedly, result from Westlake’s negligence to the
exclusion of IPI’s. However, to better define the scope of our refined remand to the
11
circuit court, we find it necessary to address the “conflicts” the ICA erroneously
identified in the two indemnity provisions.
The AOS expressly incorporates the PO and its T&C. Westlake correctly
observes that under Pennsylvania law, the contracts should be read as a whole and
consistent with one another, if possible. “Where several instruments are made as part of
one transaction they will be read together, and each will be construed with reference to
the other; and this is so although the instruments may have been executed at different
times and do not in terms refer to each other[.]” Neville v. Scott, 127 A.2d 755, 757 (Pa.
Super. Ct. 1956); see also Commonwealth ex rel. Kane v. UPMC, 129 A.3d 441, 463 (Pa.
2015) (explaining a contract should be read as a whole to effectuate its purpose and in
such a manner as to give effect to each provision rather than interpreted to nullify
another). The priorities provision substantially reflects that rule before triggering the
priority application:
If there are any terms or conditions in [a PO] which are
inconsistent with or in conflict with [the AOS], the terms and
conditions of the various documents constituting [the AOS]
shall control in the following priority and order: the front of
the [PO]; [the AOS]; and, then the reverse side terms and
conditions of the [PO].
(Emphasis added).
Practically, the potential for conflict is much higher when there is an
indemnity clause in two different documents, that, while ostensibly intended to be read
12
together, are not verbatim. The ICA identified several of these distinctions but failed to
explain why they were conflicts for purposes of deploying the AOS indemnity provision
to the exclusion of the T&C. Application of Pennsylvania law to these provisions in view
of the actual dispute raised by the parties, demonstrates that these provisions do not
provide a different scope of indemnity depending on which indemnity provision applies;
the provisions can and should be read together. Accordingly, the ICA erred in applying
the AOS’s indemnity provision to the exclusion of the T&C’s indemnity provision.
i. Application of Pennsylvania law demonstrates the AOS and
T&C are consistent for purposes of attorney fees and the
exceptions to the duty to indemnify.
Two relevant distinctions identified by the ICA are resolved by application
of Pennsylvania law. First, the ICA determined that the provisions were inconsistent
because attorneys’ fees are explicitly covered by one provision through operation of an
“including” addendum to “expenses,” while the other only generally provides for
“expenses.” Second, one provision provides exceptions to the duty to indemnify if
Westlake was solely negligent or acted willfully, but the other provides an exception only
for sole negligence. To the first, Pennsylvania law provides for attorney fees to
indemnitees for the costs of the claim indemnified against as a matter of course unless
explicitly excluded from the indemnification provision. Lehman v. Smith, No. 295-MDA-
2021, 2021 WL 5826723, at *6 (Pa. Super. Ct. December 8, 2021) (“As a general rule, an
indemnitee is entitled to recover, as part of his or her damages, reasonable attorneys’
fees.” (citing Boiler Eng’g & Supply Co., Inc. v. Gen. Controls, Inc., 277 A.2d 812 (Pa.
13
1971))).
Thus, the inclusion of attorney fees as a recoverable “expense” in
indemnity cases is implied by Pennsylvania law, consistent with the nature of the claim
itself:
“Indemnity obligations, whether imposed by contract or by
law, require the indemnitor to hold the indemnitee harmless
from costs in connection with a particular class of claims.
Legal fees and expenses incurred in defending an indemnified
claim are one such cost and thus fall squarely within the
obligation to indemnify. Consequently, attorney’s fees
incurred in defending against liability claims are included as
part of an indemnity obligation implied by law . . . and
reimbursement of such fees is presumed to have been the
intent of the draftsman unless the agreement explicitly says
otherwise . . . . As stated by the Fifth Circuit, ‘[t]his rule
simply gives effect to the very nature of indemnity, which is
to make the party whole.’”
Lehman, 2021 WL 5826723, at *7 (quoting Peter Fabrics, Inc. v. S.S. Hermes, 765 F.2d
306, 316 (2d Cir. 1985)). Accordingly, the AOS and T&C are not in conflict as they relate
to recoverable attorneys’ fees.
Similarly, there is no legal difference between the AOS’s exceptions to the
duty to indemnify drawn for both sole negligence and willful misconduct, and the T&C’s
exception only for sole negligence. Pennsylvania public policy precludes parties from
indemnifying against liability for their own willful conduct. See Wilson v. Md. Cas. Co.,
105 A.2d 304, 305 n.1 (Pa. 1954) (“Of course a person could not contract for indemnity
against liability for damage or injury caused by his own wil[l]ful act, much less an assault
14
and battery committed by him. A contract to insure against such liability would obviously
be void as being in violation of public policy.”). The AOS explicitly contains the public-
policy-enforced exception, but the T&C contains that same exception by operation of
law.8
ii. Performance of services is the crux of the dispute and is the
same under both the AOS and the T&C.
All remaining distinctions between the two indemnity provisions identified
by the ICA are resolved by an analysis of the parties’ contentions and the observation that
the provisions are intended to be read as complementary to one another, not tortured for
“arguable” inconsistencies or conflicts based on hypothetical scenarios. The crux of the
parties’ dispute is the services themselves: whether the scope of the indemnity provision
can be read to apply to injuries and property damage suffered while IPI was on site at the
Natrium plant to perform services for Westlake, but were otherwise unrelated to the work
itself, and did not result from any negligence on IPI’s part.
The parties’ dispute thus centers on the scope of the work, which is
substantially the same for purposes of this indemnity analysis. Under the AOS: “from and
8
Insofar as the ICA decision directed the circuit court to explore whether
exceptions to the duty to indemnify cover gross negligence as opposed to simple
negligence under the “sole negligence” exception, we additionally note that Pennsylvania
law nullifies “pre-injury exculpatory contracts purporting to protect a party from liability
arising from recklessness” as violative of public policy and likewise views insulation
from one’s own “gross negligence” as equally repugnant to public policy. See Feleccia v.
Lackawanna College, 215 A.3d 3, 19-21 (Pa. 2019).
15
against any and all claims . . . of any kind whatsoever . . . arising out of this Agreement
and/or the Services . . . sustained in connection with performance of the Services” and
under the T&C: “from and against any and all . . . claims . . . of any nature whatsoever . .
. arising or allegedly arising from or related to the subject matter of this [PO].”
“Services” under the AOS refers to “certain on-site services (the “Services”) to be
performed by [IPI]” and cross-references the PO: “all as shall be specified and described
in a[] “[PO][.]” There can be no meaningful distinction between services that arise or
relate to the subject matter of the PO that do not also arise out of the AOS where the AOS
expressly incorporates the PO and where the PO is fundamentally premised on the AOS
as its master services agreement. For those reasons, we conclude that the indemnity
provision in the AOS may be read together with the indemnity provision of the T&C.
B. The scope of the duty to indemnify and its exceptions are ambiguous and
require development of parol evidence.
Having concluded that the two provisions may be read together, we turn to
analyze the scope of the duty to indemnify and its exceptions as reflected by the
indemnity provisions. We find that the tension here is not in the language differences
between the two indemnity provisions, but in the ambiguity common to both as applied to
the circumstances before us: namely, circumstances where, by mere presence at the
Natrium plant, IPI and Mr. Taylor were injured through no fault of IPI.
We first observe that the circuit court summarily concluded that the scope
16
of the work covered by the AOS and the PO encompassed these unique circumstances,
and that the ICA correctly concluded that that conclusion required more nuanced analysis
and development. However, we take the additional step of concluding that the indemnity
provisions are ambiguous as applied to these circumstances. First, there is ambiguity as to
whether mere presence on site was intended by the parties to constitute a service
performed by IPI under the AOS and T&C. Second, the parties’ intentions are necessary
to clarify their agreement exempting circumstances resulting from Westlake’s “sole
negligence” from the duty to indemnify. Because Pennsylvania law instructs that parol
evidence should be admitted to discern the parties’ intent in the face of ambiguous
provisions, remand for further proceedings is appropriate.9
Like West Virginia law, analysis of indemnity agreements under
Pennsylvania law is focused on effectuating the intent of the parties. “The fundamental
rule in interpreting the meaning of a contract is to ascertain and give effect to the intent of
the contracting parties.” Murphy v. Duquesne Univ. of the Holy Ghost, 777 A.2d 418, 429
(Pa. 2001) (citation omitted). “In interpreting the scope of an indemnification clause, the
court must consider the four corners of the document and its surrounding circumstances.”
Widmer Eng’g, Inc. v. Dufalla, 837 A.2d 459, 472 (Pa. Super. Ct. 2003) (citations and
quotation marks omitted). Indemnity agreements in particular, “are to be narrowly
9
We agree with the ICA’s ultimate decision to remand for additional development,
but as discussed more fully below, we refine its scope and the factual development to be
undertaken by the circuit court.
17
interpreted in light of the parties’ intentions as evidenced by the entire contract.” Consol.
Rail Corp. v. Del. River Port Auth., 880 A.2d 628, 632 (Pa. Super. Ct. 2005).
Here, there are critical and yet unknown facts surrounding the parties’
intent. In the face of the ambiguity in the scope of the indemnity agreement as applied to
the facts before us, more factual development is necessary to determine whether the duty
to indemnify was triggered, or if any of the exceptions thereto would apply. “It is the
function of the court to decide, as a matter of law, whether the contract terms are clear or
ambiguous.” Tuthill v. Tuthill, 763 A.2d 417, 420 (Pa. Super. Ct. 2000) (citations
omitted). A court may find a provision ambiguous if it is “reasonably susceptible of
different constructions and capable of being understood in more than one sense.”
Hutchison v. Sunbeam Coal Corp., 519 A.2d 385, 390 (Pa. 1986). But those constructions
must, obviously, be logical ones. “The ‘reasonably’ qualifier is important: there is no
ambiguity if one of the two proffered meanings is unreasonable.” Trizechahn Gateway
LLC v. Titus, 976 A.2d 474, 483 (Pa. 2009). “This question is not to be resolved in a
vacuum. Rather, contractual terms are ambiguous if they are subject to more than one
reasonable interpretation when applied to a particular set of facts.” RESPA of Pa., Inc. v.
Skillman, 768 A.2d 335, 340 (Pa. Super. Ct. 2001) (internal citations and quotation marks
omitted).
The scope of the duty to indemnify here does not change depending on
which indemnity provision applies. Instead, it turns on what the parties intended to
18
encompass when agreeing to indemnity for certain services on a worksite. Notably, the
worksite at issue—a chemical plant—had the potential for danger and volatility by the
very nature of the business. More specifically, the scope of IPI’s agreement to indemnify
Westlake is ambiguous in this circumstance as it turns on unresolved factual issues, such
as: (1) what injuries or property damage the parties were contemplating when entering
into the indemnity agreements based on “on site services”; (2) whether IPI was
compensated for assuming the risk of working on such a worksite; and (3) the parties’
intent behind requiring IPI to maintain insurance as a condition of payment. The
indemnity provisions could support a duty to indemnify insofar as they contemplate
“performing” a service—which has the practical connotation of an activity—and an
injury arising therefrom. However, the provisions also contemplate that the nature of the
work required the location of performance to be on site at a chemical plant and a
condition of the parties’ contracts required IPI to maintain certain insurance coverage.
The record is insufficiently developed for this Court to resolve the ambiguity and
determine what the parties intended the scope of the work to include and, consequently,
whether an injury suffered from mere presence on the worksite falls within the
agreement’s bounds.
We also conclude that the provisions present a similar, common ambiguity
as to the exception for Westlake’s sole negligence. Westlake argues that it cannot be
found solely negligent for the Railcar Release because (1) a Pennsylvania jury attributed
fault to other third-parties and (2) IPI did not know which party or parties caused the
19
Railcar Release, so it cannot have met its burden to prove the sole negligence exception
to the duty to indemnify. IPI argues that Westlake’s shared negligence with third parties is
irrelevant and instead focuses on the fact that IPI itself was not negligent at all.10 We find
that based on the circumstances presented, the “sole negligence” exception in the contract
is also ambiguous because it is capable of both interpretations: that “sole negligence”
contemplates an assessment of blame as between the parties to the agreement (Westlake
and IPI) or shared negligence as between Westlake and any other third party.
Presented with such ambiguities in an indemnification agreement as applied
to the factual circumstances at issue, we conclude that Pennsylvania law directs a remand
for consideration of parol evidence on these issues. Indemnity agreements are strictly
construed, particularly where the indemnitee is also the drafter. See Ratti v. Wheeling
Pittsburgh Steel Corp., 758 A.2d 695, 702 (2000) (“[I]ndemnity clauses are construed
10
The parties dispute the effect of the Perry-Ruzzi line of cases dealing with the
requirement that, if a party is indemnifying against its own negligence, it must do so
clearly and unequivocally to make it enforceable. Ruzzi v. Butler Petroleum Co., 588
A.2d 1, 4 (Pa. 1991). The ICA concluded that the “sole negligence” inclusion was
sufficiently clear and unambiguous to create an indemnification obligation for at least
some degree of Westlake’s own negligence. We conclude that finding is consistent with
Pennsylvania precedent explaining that the inclusion of “sole” negligence language draws
the negative inference that there is a duty to indemnify when Westlake is not solely
negligent. See, e.g., Sunoco (R&M), LLC v. Pa. Nat’l Mut. Cas. Ins. Co., 322 A.3d 930,
954-55 (Pa. Super. Ct. 2024). However, we have not been directed to any case applying
the Perry-Ruzzi rule that definitively resolves—as a matter of law—an analysis of a “sole
negligence” provision in view of the negligence of the indemnitee and third parties to the
exclusion of the indemnitor as opposed to shared, concurrent negligence among parties to
the indemnity agreement.
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most strictly against the party who drafts them especially when that party is the
indemnitee.”). But rigid application of this rule of construction is not a first resort:
the rule [that a provision be construed against the drafter] is
not intended as a talismanic solut