Effective April 26, 2016, Georgia amended its anti-indemnification statute, Ga. Code § 13-8-2, to cover not only construction contracts, but also contracts for engineering, architectural or land surveying services. Ann. Thus, this type of anti-indemnity statute would necessarily include “sole negligence” prohibitions. state Anti -Indemnity Acts. Does not apply to the handling of hazardous substances. B-1 APPENDIX B: ANTI-INDEMNITY STATUTES APPLICABLE TO PUBLIC AGENCY CONTRACT State Code Section Summary* Comments Alaska Alaska Stat. INTRODUCTION. Massachusetts highest court, which as of the time of this publication had not yet issued a decision. The Massachusetts Anti-Idling Statute - Medfield, MA - Did you know that leaving your car idling is illegal and can get you a fine Up To $500? Massachusetts Transgender Political Coalition This group is "dedicated to ending discrimination on the basis of gender identity and gender expression." 21. As the Anti-Indemnity Act applies only to contracts entered into on or after January 1, 2012, case law interpreting this Act will be slow to develop. Arizona Ariz. Rev. There is little case law regarding challenges to states’ anti-indemnification statutes at this time. In our last issue, we alerted you to Arizona’s revised anti-indemnification statutes (A.R.S. Several anti-indemnity statutes expressly state that they apply to insurance requirements regarding liability for the sole negligence of the upstream party. 1. Nebraska’s anti-indemnity statute is a source of concern for construction contractors looking to avoid risk and liability. They are often used in insurance contexts. 11 In all, contractors and subcontractors often agree to list as additional insureds under their general liability policies the parties with whom they contract. Co., et al., SJC-11778, AC No. •Texas Oilfield Indemnity Act •Louisiana Oilfield Indemnity Act •Applies without regard to Parties' choice of law provision in contract. 1887 derives from anti-indemnity clauses in neighboring Delaware, New York and Ohio, which are among 45 states that currently have enacted some form of anti-indemnification statute limiting the enforceability of various forms of indemnity clauses, … Some parties may be considered high risk, and thus an indemnity agreement holds another party harmless. The document can hold a party free from legal action, fees, claims and losses. Anti-Indemnity Statutes. Code. 2014-P-1431, DAR-22866. §§34-226 and 41-2586) regarding state and city public construction projects which became effective September 13, 2013.In this issue, we address the effect of those statutes on the use of insurance to shift risk to an insurance company. Driscoll said language for H.B. Anti-indemnity statutes should be taken into consideration when reviewing your indemnity obligations in contracts. anti-indemnity statute in the construction context. Negligent and Intentional Acts, Including Misrepresentation, Fraud, and Violations of the Unfair Business Practices Statute (G.L. North Carolina’s Anti-Indemnification Statute is Amended In 2019, the North Carolina General Assembly re-wrote the primary statute governing the enforceability of indemnity provisions in construction and design contracts. 45.45.900 Bars indemnity for sole fault. The Consolidated Sewerage District No. Note: States with blended colors have different rules depending on the type of contract (e.g., public v. private, design v. construction). Brett M. Bruneteau* I. The Texas Anti-Indemnity Statute Texas Insurance Litigation Lawyers. No Anti-Indemnity Statute. The LOAIA prohibits an indemnitor from indemnifying an indemnitee for injury to persons that is the fault of the indemnitee. Texas’ legal landscape concerning insurance law and litigation was changed substantially by the Texas Anti-Indemnity Statute (Texas Insurance Code § 151.102), which took effect in January of 2012 following the passing of HB 2093. The statute has the potential to render many agreements void as against public policy. The way in which the act treats “regardless-of-fault” indemnity provisions represents a sea change in Texas law. By using this agreement, a party is not responsible for incidents or damages they did not cause. Contractors, Inc. v. Gilbane Bldg. A provision in a construction contract requiring one party to indemnify, hold harmless, insure or defend another party against its own negligence is contrary to public policy and void. Anti-Indemnity Statute — a law that defines the scope of legal liability that one party may transfer to another in a contract. ANTI-INDEMNITY STATUTES A majority of states have enacted an anti-indemnity statute, which provide guidance on the level of risk that can be transferred between parties to a construction contract. Courts in Massachusetts, for example, have explicitly made this determination Other courts have ruled to the contrary Indemnity Wars: Anti-Indemnity Legislation Across the Fifty States, 8 No. Anti-Indemnity Statute: A law that defines how much risk one party can transfer to another party in a contract. 3 North Dakota does not have a general anti-indemnity statute for construc-tion contracts. provide that the anti-indemnity statute shall not prohibit any employee from recovering damages, compensation, or benefits under workers’ compensation laws or any other claim or cause of action. Coghlin Elec. Massachusetts, similarly to many other states, does not allow common law indemnity claims as an end-run around the statutory bar (prohibiting employees from suing their employers) in its worker's comp statute. Anti-indemnity legislation, such as the Act, has the anticipated benefit of ensuring that property owners and/or managers maintain adequate treatment for their roadways and sidewalks following a snow or ice event by forbidding the transfer of contractual defense and indemnity for the property owner or manager’s own negligence. Louisiana Motor Carrier Anti-Indemnity Act No indemnity for negligence, intentional acts or omissions of indemnitee, or a third party over whom indemnitor has no control Cannot circumvent by requiring indemnitor to purchase liability insurance for acts or omissions of indemnitee or such third party Louisiana law prevails 21. indemnity agreement is struck down as violating an anti-indemnity statute. At the outset contractors need to consider whether the statute applies to the work they are performing. Mont. Additionally, if an indemnification provision is found in violation of an anti-indemnity statute, the provision will be held unenforceable. The legislation, signed into law by Governor Roy Cooper on July 8, 2019, both expanded and restricted the permissible scope of certain indemnity agreements. Anti-Indemnity Statutes in the 50 States Published by: Foundation of the American Subcontractors Association, Inc. 1004 Duke Street Alexandria, VA 22314-3588 Telephone: (888) 374-3133 Fax: (888) 374-3133 e-mail: ASAOffice@asa-hq.com Web site: www.fasaonline.com part of the Capitol Square, Suite 1800 65 E. State Street Columbus, Ohio 43215-4294 Donald W. Gregory, Esq. This type of anti-indemnity statute voids contract provisions that require indemnification for losses or damages arising out of the indemnitee’s negligence, whether sole or partial. However, that does not mean that any and all indemnity agreements are neces-2 See generally Bruner & O'Connor Construction Law § 10:2. Texas enacted the Texas Oilfield Anti-Indemnity Act (TOAA), and Louisiana enacted the Louisiana Oilfield Anti-Indemnity Act (LOAIA) in 1981. However, there is a possibility that such statutes are preempted under federal law 49 U.S.C. However, at some point the statute and the common law rules will intersect. Louisiana Construction Anti-Indemnity Statute 20. Commentators sort anti-indemnity statutes into two categories, depending on whether they bar broad or intermediate full-indemnity form indemnity provisions. the fair notice requirements, or, in other states, because of the effect of an anti-indemnity statute to prevent the transfer of an indemnitee’s own negligence via an indemnity clause. Unclear or no statute. Georgia Extends Anti-Indemnity Statute to Cover Professional Services This entry was posted by William L. Doerler on August 3, 2016 . 32-1159, 34-226, 41- 2586 Bars indemnity for sole fault (private work); bars indemnity for sole or partial fault and closes … The statute also forbids indemnity provisions whereby one party indemnifies the other for punitive damages or statutory violations caused by the responsible party. 20 They reason that an agreement to procure this type of insurance coverage violates public policy and is no different than an agreement to indemnify. In general, states enact anti-indemnity statutes on public policy grounds. Additionally, the Act could also help to lower insurance … 725.06, Fla. Stat. § 28-2-2111(1). Additional Insureds Coverage for AI’s own negligence vs. vicarious liability for Named Insured. Litigation relating to indemnity clauses enforced under the common law will continue for some time. In May 2011, Texas joined the states that regulate the scope of permissible indemnity by statute. Virginia’s anti-indemnity statute is a case in point. Introducing The Construction Anti-Indemnity Act: The Baby And The Bathwater . 2 Journal of the American College of Construction Lawyers Anti-Indemnity Statute Refuses Coverage of Sole Negligence of Additional Insured. The statute, codified as new Chapter 151 of the Texas Insurance Code, regulates both indemnity provisions and additional insured provisions typically found in construction contracts. Anti-indemnity statutes may prohibit the transfer of any liability attributable to the transferor's negligence; or, alternatively, they may prohibit only the transfer of liability arising from the transferor's sole negligence. Indemnity means to hold someone harmless for an action. The following states do not have a statute that limits the enforceability of indemnification provisions in construction contracts, or have a provision that only applies in very limited circumstances: Alabama, Maine, Nevada, North Dakota, Pennsylvania, Vermont, Wisconsin, and Wyoming. #IRMI2017 . Nebraska’s Anti-Indemnity Statute . Texas regulation of construction indemnity. Even so, some questions exist as to what the practical effect of the new law will be. Several anti-indemnity statutes have been interpreted by courts as applying to insurance, even though the statute otherwise appears silent on the issue or, worse, suggests that insurance agreements are exempt. If the contracting parties fail to follow the requirements of Section 725.06 of the Florida Statutes, the indemnity provision will be void and unenforceable. II. Anti-Indemnity statute does not specify whether it applies to additional insureds, and no case law interpreting. Stat. The point is not to have a one-size-fits-all rule, but rather to note that the duration of an indemnity obligation should be considered at the time the contract is signed. 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