First Court Holds Comparative Indemnity Unenforceable Without Express Language in Refinery Contractor Agreement

Following an $86 million settlement of personal-injury claims arising from a refinery fire, Blanchard Refining sought comparative indemnity from its turnaround-services contractor Industrial Specialists under a contract requiring indemnification "except to the extent the liability, loss or damage is attributable to and caused by the negligence of Company." The Houston First Court of Appeals reversed a $46.48 million judgment, holding that the express negligence doctrine requires indemnity agreements to expressly and specifically provide for comparative indemnity when the indemnitee seeks recovery despite its own proportional fault.