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Regular Session, 2010
HOUSE BILL NO. 1134
BY REPRESENTATIVE LIGI
MTR VEHICLE/COMMERCIAL: Prohibits the contractual transfer of liability in motor
carrier transportation contracts and construction contracts
AN ACT1
To enact R.S. 9:2780.1, relative to contracts; to provide for motor carrier transportation2
contracts; to provide for construction contracts; to provide for liability provisions;3
and to provide for related matters.4
Be it enacted by the Legislature of Louisiana:5
Section 1. R.S. 9:2780.1 is hereby enacted to read as follows: 6
§2780.1. Certain contract provisions invalid; motor carrier transportation contracts;7
construction contracts8
A. For purposes of this Section, the following terms have the meanings9
ascribed to them by this Subsection, except where the context clearly indicates10
otherwise:11
(1) "Construction contract" shall mean any agreement for the design,12
construction, alteration, renovation, repair, or maintenance of a building, structure,13
highway, road, bridge, water line, sewer line, oil line, gas line, appurtenance or other14
improvement to real property, including any moving, demolition, or excavation,15
except that no deed, lease, easement, license, or other instrument granting an interest16
in or the right to possess property will be deemed to be a construction contract even17
if the instrument includes the right to design, construct, alter, renovate, repair or18
maintain improvements on such real property. "Construction contract" shall not19 HLS 10RS-1697 ORIGINAL
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include any design, construction, alteration, renovation, repair, or maintenance of the1
following:2
(a) Any dire or gravel road used to access oil and gas wells and associated3
facilities:4
(b) Oil flow lines or gas gathering lines used in association with the5
transportation of production from oil and gas wells from the point that oil and gas6
becomes co-mingled for transportation to oil storage facilities or gas transmission7
lines.8
(2) "Motor carrier transportation contract" shall mean any contract,9
agreement, or understanding covering the transportation of property for10
compensation or hire by a motor carrier, entrance upon property by the motor carrier11
for the purpose of loading, unloading, or transporting property for compensation or12
hire, or a service incidental to any such activity, including but not limited to storage13
or property, except the Uniform Intermodal Interchange and Facilities Agreement14
administered by the Intermodal Association of North America, as such agreement15
may be amended by the Intermodal Interchange Executive Committee.16
B. Notwithstanding any provision of law to the contrary, any provision,17
clause, covenant, or agreement contained in, collateral to, or affecting a motor carrier18
transportation contract or a construction contract that purports to indemnify, defend,19
or hold harmless, or has the effect of indemnifying, defending, or holding harmless,20
the indemnitee from or against any liability for loss or damage resulting from the21
negligence or intentional acts or omissions of the indemnitee is against the public22
policy of this state and is null, void, and unenforceable.23
C.(1) Notwithstanding any provision of the law to the contrary, any24
provision, clause, covenant, or agreement contained in, collateral to, or affecting a25
motor carrier transportation contract or construction contract which purports to26
require an obligor to procure liability insurance covering the obligee's own27
negligence is void and unenforceable unless:28 HLS 10RS-1697 ORIGINAL
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(a) The contract requires the obligee to pay the cost of such insurance1
coverage.2
(b) The obligee pays the actual cost of procuring the liability insurance.3
(2) This section shall not be applicable to or be construed to affect or impair4
the following obligations:5
(a) Any contractual obligation of a contractor or owner to provide railroad6
protective liability insurance.7
(b) Any contract or agreement whereby an owner, responsible party, or8
governmental entity agrees to indemnify a contractor directly or through another9
contractor relative to strict liability under any environmental law.10
(c) Any indemnification agreement that is an integral part of an offer to11
compromise, or the settlement of a disputed claim.12
D. Notwithstanding any contractual provision to the contrary, the laws of the13
state of Louisiana will apply to and govern any construction contract to be performed14
in this state and any motor carrier transportation contract relative to loading or15
unloading activities, or any services incidental thereto, which occur in this state.16
Any provision, covenant, or clause in such contracts which conflict with the17
provisions of this section shall be null, void, and unenforceable.18
E. The provisions of this Section are not intended to, nor shall they be19
judicially interpreted, to alter, add to, subtract from, amend, overlap, or affect the20
provisions of R.S. 9:2780 or R.S. 38:2195.21
F. The provisions of this Section shall apply to any motor carrier22
transportation contract and any construction contract for any accident, injury, or23
damage occurring on or after January 1, 2011.24 HLS 10RS-1697 ORIGINAL
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DIGEST
The digest printed below was prepared by House Legislative Services. It constitutes no part
of the legislative instrument. The keyword, one-liner, abstract, and digest do not constitute
part of the law or proof or indicia of legislative intent. [R.S. 1:13(B) and 24:177(E)]
Ligi HB No. 1134
Abstract: Prohibits the contractual transfer of liability in motor carrier transportation
contracts and construction contracts
Proposed law defines a "motor carrier transportation contract" to mean any contract,
agreement, or understanding covering the transportation of property for compensation or hire
by a motor carrier, entrance upon property by the motor carrier for the purpose of loading,
unloading, or transporting property for compensation or hire, or a service incidental to any
such activity, including but not limited to storage or property, except the Uniform Intermodal
Interchange and Facilities Access Agreement administered by the Intermodal Association
of North America, as such agreement may be amended by the Intermodal Interchange
Executive Committee.
Proposed law defines a "construction contract" to mean any agreement for the design,
construction, alteration, renovation, repair, or maintenance of a building, structure, highway,
road, bridge, water line, sewer line, oil line, gas line, appurtenance or other improvement to
real property, including any moving, demolition, or excavation, except that no deed, lease,
easement, license, or other instrument granting an interest in or the right to possess property
shall be deemed to be a construction contract even if the instrument includes the right to
design, construct, alter, renovate, repair or maintain improvements on such real property.
Further provides that a "construction contract" shall not include any design, construction,
alteration, renovation, repair, or maintenance of (a) dirt or gravel roads used to access oil and
gas wells and associated facilities, or (b) oil flow lines or gas gathering lines used in
association with the transportation of production from oil and gas wells from the point that
oil and gas becomes co-mingled for transportation to oil storage facilities or gas transmission
lines.
Proposed law provides that any provision, clause, covenant, or agreement contained in,
collateral to, or affecting a motor carrier transportation contract or a construction contract
that purports to indemnify, defend, or hold harmless, or has the effect of indemnifying,
defending, or holding harmless, the indemnitee from or against any liability for loss or
damage resulting from the negligence or intentional acts or omissions of the indemnitee is
against the public policy of this state and is null, void, and unenforceable.
Proposed law provides any provision, clause, covenant, or agreement contained in, collateral
to, or affecting a motor carrier transportation contract or construction contract which
purports to require an obilgor to procure liability insurance covering the obligee’s own
negligence is void and unenforceable unless (a) the contract requires the obligee to pay the
cost of such insurance coverage, and (b) the obligee pays the actual cost of procuring the
liability insurance. Proposed law further provides that this section will not be applicable to
or be construed to affect or impair the following obligations: (a) Any contractual obligation
of a contractor or owner to provide railroad protective liability insurance; (b) Any contract
or agreement whereby an owner, responsible party, or governmental entity agrees to
indemnify a contractor directly or through another contractor relative to strict liability under
any environmental law; (c) Any indemnification agreement that is an integral part of an offer
to compromise, or the settlement of a disputed claim.
Proposed law provides that La. law applies to construction contracts performed in this state
or motor carrier transportation contracts relative to loading or unloading activities, or any
services incidental thereto, which occur in this state. Proposed law further provides that HLS 10RS-1697 ORIGINAL
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any provision, covenant, or clause in such contracts which conflicts with the provisions of
this section shall be null, void and unenforceable.
Proposed law provides that this section is not intended to, nor shall it be judicially
interpreted, to alter, add to, subtract from, amend, overlap, or affect the provisions of R.S.
9:2780 or R.S. 38:2195.
Proposed law provides that the provisions of this section shall apply to any motor carrier
transportation contract and any construction contract for any accident, injury, or damage
occurring on or after Jan. 1, 2011.
(Adds R.S. 9:2780.1)