Hutchins v. Hill Petroleum Co.

WATSON, Justice.1

An insurance agency failed to insure its client’s contractual indemnity obligations under a labor contract. The client claimed damages from non-renewal of the contract. The issues are: (1) fault of the insurance agency; (2) causal connection between any *650fault and non-renewal of the contract; and (3) proof of damages.

Artigue Construction Co., Inc. had a maintenance contract with Hill Petroleum Company between August 1, 1985, and August 1, 1986. Artigue and Hill entered into new contracts for 1986/1987 and 1987/1988. All three contracts had an indemnity clause specifying that…