HLS 11RS-884 ORIGINAL
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Regular Session, 2011
HOUSE BILL NO. 490
BY REPRESENTATIVE ABRAMSON
Prefiled pursuant to Article III, Section 2(A)(4)(b)(i) of the Constitution of Louisiana.
CONTRACTS: Provides relative to certain motor carrier transportation contracts
AN ACT1
To amend and reenact R.S. 9:2780.1(A)(5), (B), (C), (D), and (F), to enact R.S. 9:2780.1(G),2
and to repeal R.S. 9:2780.1(A)(2), relative to motor carrier transport contracts; to3
repeal provisions related to construction contracts; to define "reciprocal indemnity4
obligations"; to exempt any contract to which the state or any of its political5
subdivisions is a party; to provide for enforcement of certain provisions in motor6
carrier transportation contracts; to provide for an effective date; and to provide for7
related matters.8
Be it enacted by the Legislature of Louisiana:9
Section 1. R.S. 9:2780.1(A)(5), (B), (C), (D), and (F) is hereby amended and10
reenacted and R.S. 9:2780.1(G) is hereby enacted to read as follows: 11
ยง2780.1. Certain contract provisions invalid; motor carrier transportation contracts;12
construction contracts13
A. For purposes of this Section, the following terms have the meanings14
ascribed to them by this Subsection, except where the context clearly indicates15
otherwise:16
* * *17
(5) "Third party" means any party not subject to the contractual obligations18
between the indemnitee and indemnitor. "Reciprocal indemnity obligations" means19
obligations in a contract by which the parties agree to indemnify, defend, and hold20 HLS 11RS-884 ORIGINAL
HB NO. 490
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harmless each other, and, perhaps, each other's contractors, employees, and invitees1
or other such parties against loss, liability, or damages in connection with bodily2
injury, death, or property damage arising out of, related to, or resulting from the3
performance of the contract.4
B. Notwithstanding any provision of law to the contrary and except as5
otherwise provided in this Section, any provision, clause, covenant, or agreement6
contained in, collateral to, or affecting a motor carrier transportation contract or7
construction contract which purports to indemnify, defend, or hold harmless, or has8
the effect of indemnifying, defending, or holding harmless, the indemnitee from or9
against any liability for loss or damage resulting from the negligence or intentional10
acts or omissions of the indemnitee, or an agent or employee of the indemnitee , or11
a third party over which the indemnitor has no control is contrary to the public policy12
of this state and is null, void, and unenforceable.13
C. Notwithstanding any provision of law to the contrary and except as14
otherwise provided in this Section, any provision, clause, covenant, or agreement15
contained in, collateral to, or affecting a motor carrier transportation contract or16
construction contract which purports to require an indemnitor to procure liability17
insurance covering the negligent or intentional acts or omissions or both of the18
indemnitee, its employees , or agents, or the acts or omissions of a third party over19
whom the indemnitor has no control is null, void, and unenforceable. However,20
nothing in this Section shall be construed to prevent the indemnitee from requiring21
the indemnitor to provide proof of insurance for obligations covered by the contract.22
D.(1) Notwithstanding any contractual provision to the contrary, the laws of23
the state of Louisiana this Section shall apply to and govern any construction24
contract to be performed in this state and any motor carrier transportation contract25
relative to loading or unloading activities, or any services incidental thereto, which26
occur in this state. Any provision, covenant, or clause in such contracts which27
conflicts with the provisions of this Section shall be null, void, and unenforceable.28 HLS 11RS-884 ORIGINAL
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(2) This Section shall not apply to any contract to which the state of1
Louisiana or any of its political subdivisions is a party.2
* * *3
F. The provisions of this Section shall not apply to prohibited clauses in any4
motor carrier transportation contract and any construction contract entered into prior5
to January 1, 2011.6
G. Notwithstanding any provision of law to the contrary, nothing in this7
Section shall invalidate or prohibit the enforcement of any of the following in any8
motor carrier transportation contract:9
(1) Any reciprocal indemnity obligations.10
(2) Any clause containing the indemnitor's promise to indemnify, defend, or11
hold harmless the indemnitee or an agent or employee of the indemnitee if the12
contract also requires the indemnitor to obtain insurance to insure the obligation to13
indemnify, defend, or hold harmless and the indemnitor had the opportunity to14
recover the cost of the required insurance in the contract price.15
(3) Any clause that requires the indemnitor to procure insurance or name the16
indemnitee as an additional insured on the indemnitor's policy of insurance, but only17
to the extent that such additional insurance coverage provides coverage to the18
indemnitee for liability due to either of the following:19
(a) Reciprocal indemnity obligations.20
(b) An obligation to indemnify, defend, or hold harmless authorized pursuant21
to Paragraph (2) of this Subsection.22
Section 2. R.S. 9:2870.1(A)(2) is hereby repealed in its entirety.23
Section 3. This Act shall become effective upon signature by the governor or, if not24
signed by the governor, upon expiration of the time for bills to become law without signature25
by the governor, as provided by Article III, Section 18 of the Constitution of Louisiana. If26
vetoed by the governor and subsequently approved by the legislature, this Act shall become27
effective on the day following such approval.28 HLS 11RS-884 ORIGINAL
HB NO. 490
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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)]
Abramson HB No. 490
Abstract: Repeals provisions related to indemnification provisions in construction
contracts; provides for enforcement of certain provisions in motor carrier
transportation contracts; exempts contracts to which the state or any of its political
subdivisions is a party.
Present law defines "third party" as any party not subject to the contractual obligations
between the indemnitee and indemnitor.
Proposed law repeals present law.
Proposed law defines "reciprocal indemnity obligations" as obligations in a contract by
which the parties agree to indemnify, defend, and hold harmless each other, and, perhaps,
each other's contractors, employees, and invitees or other such parties against loss, liability,
or damages in connection with bodily injury, death, or property damage arising out of,
related to, or resulting from the performance of the contract.
Present law provides that, notwithstanding any provision of law to the contrary any
provision, clause, covenant, or agreement contained in, collateral to, or affecting a motor
carrier transportation contract or construction contract which 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, an agent or employee of the indemnitee, or
a third party over which the indemnitor has no control is contrary to the public policy of this
state and is null, void, and unenforceable.
Proposed law provides that notwithstanding any provision of law to the contrary and except
as otherwise provided in present law and proposed law, any provision, clause, covenant, or
agreement contained in, collateral to, or affecting a motor carrier transportation contract
which 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 or
an agent or employee of the indemnitee is contrary to the public policy of this state and is
null, void, and unenforceable.
Present law provides that, notwithstanding any provision of law to the contrary 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 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 in present law
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, notwithstanding any provision of law to the contrary and except
as otherwise provided in proposed law, any provision, clause, covenant, or agreement
contained in, collateral to, or affecting a motor carrier transportation contract which purports
to require an indemnitor to procure liability insurance covering the negligent or intentional
acts or omissions or both of the indemnitee, its employees, or agents is null, void, and
unenforceable. Otherwise retains present law. HLS 11RS-884 ORIGINAL
HB NO. 490
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are additions.
Present law provides that, notwithstanding any contractual provision to the contrary, the laws
of the state of La. shall apply to and govern any construction contract to be performed in this
state and any motor carrier transportation contract relative to loading or unloading activities,
or any services incidental thereto, which occur in this state. Any provision, covenant, or
clause in such contracts which conflicts with the provisions of present law shall be null,
void, and unenforceable.
Proposed law provides that, notwithstanding any contractual provision to the contrary,
proposed law shall apply to and govern any motor carrier transportation contract relative to
loading or unloading activities, or any services incidental thereto, which occur in this state.
Otherwise retains present law.
Proposed law provides that proposed law shall not apply to any contract to which the state
of La. or any of its political subdivisions is a party.
Present law provides that the provisions of present law shall not apply to prohibited clauses
in any motor carrier transportation contract and any construction contract entered into prior
to Jan. 1, 2011.
Proposed law provides that the provisions of present law shall not apply to prohibited clauses
in any motor carrier transportation contract entered into prior to Jan. 1, 2011.
Proposed law provides that, notwithstanding any provision of law to the contrary, nothing
in proposed law shall invalidate or prohibit the enforcement of any of the following in any
motor carrier transportation contract:
(1)Any reciprocal indemnity obligations.
(2)Any clause containing the indemnitor's promise to indemnify, defend, or hold
harmless the indemnitee or an agent or employee of the indemnitee if the contract
also requires the indemnitor to obtain insurance to insure the obligation to indemnify,
defend, or hold harmless and the indemnitor had the opportunity to recover the cost
of the required insurance in the contract price.
(3)Any clause that requires the indemnitor to procure insurance or name the indemnitee
as an additional insured on the indemnitor's policy of insurance, but only to the
extent that such additional insurance coverage provides coverage to the indemnitee
for liability due to either of the following:
(a)Reciprocal indemnity obligations.
(b)An obligation to indemnify, defend, or hold harmless authorized under
proposed law.
Present law defines ''construction contract'' as 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 will 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 repeals present law.
Present law provides that a construction contract shall not include any design, construction,
alteration, renovation, repair, or maintenance of the following:
(1)Any dirt or gravel road used to access oil and gas wells and associated facilities. HLS 11RS-884 ORIGINAL
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(2)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 repeals present law.
Effective upon signature of governor or lapse of time for gubernatorial action.
(Amends R.S. 9:2780.1(A)(5), (B), (C), (D), and (F); Adds R.S. 9:2780.1(G); Repeals R.S.
9:2780.1(A)(2))