Fifth Circuit Clarifies Insurance Floor and Ceiling in Oilfield Mutual Indemnity Agreements Under TOAIA

Century Surety, as subrogee of Triangle Engineering after paying $5 million on a personal injury settlement, sought reimbursement from Colgate Operating under a master service agreement requiring indemnity insurance "not less than $5 million" or the maximum amount permitted without violating TOAIA. The Fifth Circuit affirmed summary judgment for Colgate, holding that the MSA's insurance language established both a floor and ceiling of $5 million, rendering Colgate's $75 million excess policy irrelevant to Triangle's indemnity rights.