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Regular Session, 2010 ENROLLED
SENATE BILL NO. 625
BY SENATOR MARTINY AND REPRESENTATIVE LIGI
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 without14
limitation, for compensation or hire by a motor carrier, entrance upon property15
by the motor carrier for the purpose of loading, unloading, or transporting16
property, other than agricultural products as defined in R.S. 9:3306 and timber17
without limitation, for compensation or hire, or a service incidental to any such18
activity, including but not limited to storage of property, other than agricultural19
products as defined in R.S. 9:3306 and timber without limitation, except the20
Uniform Intermodal Interchange and Facilities Access Agreement administered21
by the Intermodal Association of North America or other agreements providing22
for the interchange, use, or possession of intermodal chassis, containers, or23
other intermodal equipment.24
(2)(a) ''Construction contract'' shall mean any agreement for the design,25
construction, alteration, renovation, repair, or maintenance of a building,26
structure, highway, road, bridge, water line, sewer line, oil line, gas line,27
ACT No. 492 SB NO. 625 ENROLLED
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appurtenance, or other improvement to real property, including any moving,1
demolition, or excavation, except that no deed, lease, easement, license, or other2
instrument granting an interest in or the right to possess property will be3
deemed to be a construction contract even if the instrument includes the right4
to design, construct, alter, renovate, repair, or maintain improvements on such5
real property.6
(b) "Construction contract" shall not include any design, construction,7
alteration, renovation, repair, or maintenance of the following:8
(i) Any dirt or gravel road used to access oil and gas wells and associated9
facilities.10
(ii) Oil flow lines or gas gathering lines used in association with the11
transportation of production from oil and gas wells from the point that oil and12
gas becomes co-mingled for transportation to oil storage facilities or gas13
transmission lines.14
(3) "Indemnitee" means any named party in the contract to whom15
indemnification is owed pursuant to the terms of the contract.16
(4) "Indemnitor" means any party to the contract who obligates himself17
to provide indemnification pursuant to the terms of the contract.18
(5) "Third party" means any party not subject to the contractual19
obligations between the indemnitee and indemnitor.20
B. Notwithstanding any provision of law to the contrary, any provision,21
clause, covenant, or agreement contained in, collateral to, or affecting a motor22
carrier transportation contract or construction contract which purports to23
indemnify, defend, or hold harmless, or has the effect of indemnifying,24
defending, or holding harmless, the indemnitee from or against any liability for25
loss or damage resulting from the negligence or intentional acts or omissions of26
the indemnitee, an agent or employee of the indemnitee, or a third party over27
which the indemnitor has no control is contrary to the public policy of this state28
and is null, void, and unenforceable.29
C. Notwithstanding any provision of law to the contrary, any provision,30 SB NO. 625 ENROLLED
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Coding: Words which are struck through are deletions from existing law;
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clause, covenant, or agreement contained in, collateral to, or affecting a motor1
carrier transportation contract or construction contract which purports to2
require an indemnitor to procure liability insurance covering the acts or3
omissions or both of the indemnitee, its employees or agents, or the acts or4
omissions of a third party over whom the indemnitor has no control is null,5
void, and unenforceable. However, nothing in this Section shall be construed6
to prevent the indemnitee from requiring the indemnitor to provide proof of7
insurance for obligations covered by the contract.8
D. Notwithstanding any contractual provision to the contrary, the laws9
of the state of Louisiana shall apply to and govern any construction contract to10
be performed in this state and any motor carrier transportation contract11
relative to loading or unloading activities, or any services incidental thereto,12
which occur in this state. Any provision, covenant, or clause in such contracts13
which conflicts with the provisions of this Section shall be null, void, and14
unenforceable.15
E. The provisions of this Section are not intended to, nor shall they be16
judicially interpreted, to alter, add to, subtract from, amend, overlap, or affect17
the provisions of R.S. 9:2780 or R.S. 38:2195.18
F. The provisions of this Section shall not apply to prohibited clauses in19
any motor carrier transportation contract and any construction contract20
entered into prior to January 1, 2011. 21
Section 2. The provisions of this Act shall not apply to a contract providing22
indemnity to the indemnitee when such contract was executed before the effective date of23
this Act and which contract governs a specific terminable performance of a specific job or24
activity.
PRESIDENT OF THE SENATE
SPEAKER OF THE HOUSE OF REPRESENTATIVES
GOVERNOR OF THE STATE OF LOUISIANA
APPROVED: