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Regular Session, 2010
SENATE BILL NO. 625
BY SENATOR MARTINY AND REPRESENTATIVE LIGI
CONTRACTS. Prohibits certain indemnity provisions in certain motor carrier transportation
contracts and certain construction contracts. (1/1/11)
AN ACT1
To enact R.S. 9:2780.1, relative to contracts; to provide relative to motor carrier2
transportation contracts; to provide relative to construction contracts; to provide3
relative to liability provisions; 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
ยง2780.1. Certain contract provisions invalid; motor carrier transportation7
contracts; 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) "Motor carrier transportation contract" shall mean any contract,12
agreement, or understanding covering the transportation of property, other13
than agricultural products as defined in R.S. 9:3306 and timber, for14
compensation or hire by a motor carrier, entrance upon property by the motor15
carrier for the purpose of loading, unloading, or transporting property, other16
than agricultural products as defined in R.S. 9:3306 and timber, for17 SB NO. 625
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compensation or hire, or a service incidental to any such activity, including but1
not limited to storage of property, other than agricultural products as defined2
in R.S. 9:3306 and timber, except the Uniform Intermodal Interchange and3
Facilities Access Agreement administered by the Intermodal Association of4
North America or other agreements providing for the interchange, use or5
possession of intermodal chassis, containers, or other intermodal equipment.6
(2)(a) ''Construction contract'' shall mean any agreement for the design,7
construction, alteration, renovation, repair, or maintenance of a building,8
structure, highway, road, bridge, water line, sewer line, oil line, gas line,9
appurtenance or other improvement to real property, including any moving,10
demolition, or excavation, except that no deed, lease, easement, license, or other11
instrument granting an interest in or the right to possess property will be12
deemed to be a construction contract even if the instrument includes the right13
to design, construct, alter, renovate, repair or maintain improvements on such14
real property.15
(b) "Construction contract" shall not include any design, construction,16
alteration, renovation, repair, or maintenance of the following:17
(i) Any dirt or gravel road used to access oil and gas wells and associated18
facilities.19
(ii) Oil flow lines or gas gathering lines used in association with the20
transportation of production from oil and gas wells from the point that oil and21
gas becomes co-mingled for transportation to oil storage facilities or gas22
transmission lines.23
(3) "Indemnitee" means any named party in the contract to whom24
indemnification is owed pursuant to the terms of the contract.25
(4) "Indemnitor" means any party to the contract who obligates himself26
to provide indemnification under the terms of the contract.27
(5) "Third party" means any party not subject to the contractual28
obligations between the indemnitee and indemnitor.29 SB NO. 625
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B. Notwithstanding any provision of law to the contrary, any provision,1
clause, covenant, or agreement contained in, collateral to, or affecting a motor2
carrier transportation contract or construction contract which purports to3
indemnify, defend, or hold harmless, or has the effect of indemnifying,4
defending, or holding harmless, the indemnitee from or against any liability for5
loss or damage resulting from the negligence or intentional acts or omissions of6
the indemnitee, an agent or employee of the indemnitee, or a third party over7
which the indemnitor has no control is contrary to the public policy of this state8
and is null, void, and unenforceable.9
C. Notwithstanding any provision of law to the contrary, any provision,10
clause, covenant, or agreement contained in, collateral to, or affecting a motor11
carrier transportation contract or construction contract which purports to12
require an indemnitor to procure liability insurance covering the acts or13
omissions or both of the indemnitee, its employees or agents, or the acts or14
omissions of a third party over whom the indemnitor has no control is null,15
void, and unenforceable. However, nothing in this Section shall be construed16
to prevent the indemnitee from requiring the indemnitor to provide proof of17
insurance for obligations covered by the contract.18
D. Notwithstanding any contractual provision to the contrary, the laws19
of the state of Louisiana shall apply to and govern any construction contract to20
be performed in this state and any motor carrier transportation contract21
relative to loading or unloading activities, or any services incidental thereto,22
which occur in this state. Any provision, covenant, or clause in such contracts23
which conflicts with the provisions of this Section shall be null, void and24
unenforceable.25
E. The provisions of this Section are not intended to, nor shall they be26
judicially interpreted, to alter, add to, subtract from, amend, overlap, or affect27
the provisions of R.S. 9:2780 or R.S. 38:2195.28
F. The provisions of this Section shall not apply to prohibited clauses in29 SB NO. 625
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any motor carrier transportation contract and any construction contract1
entered into prior to January 1, 2011. 2
Section 2. This Act shall become effective on January 1, 2011.3
The original instrument was prepared by Sharon F. Lyles. The following
digest, which does not constitute a part of the legislative instrument, was
prepared by Michelle Broussard-Johnson.
DIGEST
Martiny (SB 625)
Proposed law defines a "motor carrier transportation contract" to mean any contract,
agreement, or understanding covering the transportation of property, other than agricultural
products as defined in present law and timber, for compensation or hire by a motor carrier,
entrance upon property by the motor carrier for the purpose of loading, unloading, or
transporting property, other than agricultural products as defined in present law and timber,
for compensation or hire, or a service incidental to any such activity, including but not
limited to storage or property, other than agricultural products as defined in present law and
timber, except the Uniform Intermodal Interchange and Facilities Access Agreement
administered by the Intermodal Association of North America, or other agreements
providing for the interchange, use or possession of intermodal chassis, containers, or other
intermodal equipment.
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.
Proposed law further provides that a "construction contract" shall not include any design,
construction, alteration, renovation, repair, or maintenance of (i) dirt or gravel roads used
to access oil and gas wells and associated facilities, or (ii) 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 defines an "indemnitee" to mean any named party in the contract to whom
indemnification is owed pursuant to the terms of the contract.
Proposed law defines an "indeminitor" to mean any party to the contract who obligates
himself to provide indemnification under the terms of the contract.
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 where there is negligence or fault (strict liability) on the part of the indemnitee, or
an agent or employee of the indemnitee, or an independent contractor over which the
indemnitor has no control.
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 indemnitor to procure liability insurance covering the acts or SB NO. 625
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omissions or both of the indemnitee, its employees or agents, or the acts or omissions of a
third party over whom the indemnitor has no control is null, void, and unenforceable.
However, nothing is this Section shall be construed to prevent the indemnitee from requiring
the indemnitor to provide proof of insurance for obligations covered by the contract.
Proposed law provides that Louisiana 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
any provision, covenant, or clause in such contracts which conflicts with the provisions of
proposed law shall be null, void and unenforceable.
Proposed law is not intended to, nor shall it be judicially interpreted, to alter, add to, subtract
from, amend, overlap, or affect the provisions of certain oil field contracts or certain public
contracts.
Proposed law shall not apply to prohibited clauses in any motor carrier transportation
contract and any construction contract entered into prior to January 1, 2011.
Effective January 1, 2011.
(Adds R.S. 9:2780.1)
Summary of Amendments Adopted by Senate
Committee Amendments Proposed by Senate Committee on Commerce, Consumer
Protection, and International Affairs to the original bill.
1. Excludes agreements which provide for the interchange, use or possession
of intermodal chassis, containers, or other intermodal equipment.
2. Defines "indemnitee."
3. Changes the terms "intentional acts" and "acts of omission of the indemnitee"
to "fault (strict liability)."
4.Removes exemption for indemnification agreements that are part of
compromise offers or settlements.
5.Makes the provisions to apply prospectively, only, to contracts entered into
after January 1, 2011.
Senate Floor Amendments to reengrossed bill.
1. Excludes agricultural products from the definition of "motor carrier
transportation contract".
2. Redefines "indemnitee".
3. Provides for the definition of "indemnitor" and "third party".
4. Provides for the procurement of liability insurance by indemnitors.