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Regular Session, 2012 ENROLLED
SENATE BILL NO. 693
BY SENATOR MORRELL
AN ACT1
To amend and reenact R.S. 9:2780.1(A)(2)(a) and (5), (B), (C), and (D), to enact R.S.2
9:2780.1(G), and to repeal Section 2 of Act No. 492 of the 2010 Regular Session of3
the Legislature, relative to construction contracts; to provide relative to definitions;4
to exclude certain contracts; to provide relative to the enforcement of certain clauses5
in construction contracts; to repeal a provision excluding certain contracts; and to6
provide for related matters.7
Be it enacted by the Legislature of Louisiana:8
Section 1. R.S. 9:2780.1(A)(2)(a) and (5), (B), (C), and (D) are hereby amended and9
reenacted and R.S. 9:2780.1(G) is hereby enacted to read as follows:10
ยง2780.1. Certain contract provisions invalid; motor carrier transportation contracts;11
construction contracts12
A. For purposes of this Section, the following terms have the meanings13
ascribed to them by this Subsection, except where the context clearly indicates14
otherwise:15
* * *16
(2)(a) ''Construction contract'' shall mean any agreement for the design,17
construction, alteration, or renovation, repair, or maintenance of a building,18
structure, highway, road, bridge, water line, sewer line, oil line, gas line,19
ACT No. 684 SB NO. 693 ENROLLED
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appurtenance, or other improvement to real property , or repair or maintenance of1
a highway, road, or bridge, including any moving, demolition, or excavation,2
except that no deed, lease, easement, license, or other instrument granting an interest3
in or the right to possess property will be deemed to be a construction contract even4
if the instrument includes the right to design, construct, alter, renovate, repair, or5
maintain improvements on such real property.6
* * *7
(5) "Third party" means any party not subject to the contractual obligations8
between the indemnities indemnitee and indemnitor, excluding, however, any9
party who has otherwise contracted with the indemnitor or is at the10
indemnitee's facility at the invitation or direction of the indemnitor.11
B. Notwithstanding any provision of law to the contrary and except as12
otherwise provided in this Section, any provision, clause, covenant, or agreement13
contained in, collateral to, or affecting a motor carrier transportation contract or14
construction contract which purports to indemnify, defend, or hold harmless, or has15
the effect of indemnifying, defending, or holding harmless, the indemnities16
indemnitee from or against any liability for loss or damage resulting from the17
negligence or intentional acts or omissions of the indemnities imdemnitee, an agent18
or employee of the indemnities indemnitee, or a third party over which the19
indemnitor has no control is contrary to the public policy of this state and is null,20
void, and unenforceable.21
C. Notwithstanding any provision of law to the contrary and except as22
otherwise provided in this Section, any provision, clause, covenant, or agreement23
contained in, collateral to, or affecting a motor carrier transportation contract or24
construction contract which purports to require an indemnitor to procure liability25
insurance covering the acts or omissions or both of the indemnities indemnitee, its26
employees or agents, or the acts or omissions of a third party over whom the27
indemnitor has no control is null, void, and unenforceable. However, nothing in this28
Section shall be construed to prevent the indemnities indemnitee from requiring the29
indemnitor to provide proof of insurance for obligations covered by the contract.30 SB NO. 693 ENROLLED
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D. Notwithstanding any contractual provision to the contrary, the laws of the1
state of Louisiana this Section shall apply to and govern any construction contract2
to be performed in this state and any motor carrier transportation contract relative to3
loading or unloading activities, or any services incidental thereto, which occur in this4
state. Any provision, covenant, or clause in such contracts which conflicts with the5
provisions of this Section shall be null, void, and unenforceable.6
* * *7
G. Nothing in this Section shall invalidate or prohibit the enforcement8
of the following:9
(1) Any clause in a construction contract containing the indemnitor's10
promise to indemnify, defend, or hold harmless the indemnitee or an agent or11
employee of the indemnitee if the contract also requires the indemnitor to12
obtain insurance to insure the obligation to indemnify, defend, or hold harmless13
and there is evidence that the indemnitor recovered the cost of the required14
insurance in the contract price. However, the indemnitor's liability under such15
clause shall be limited to the amount of the proceeds that were payable under16
the insurance policy or policies that the indemnitor was required to obtain.17
(2) Any clause in a construction contract that requires the indemnitor18
to procure insurance or name the indemnitee as an additional insured on the19
indemnitor's policy of insurance, but only to the extent that such additional20
insurance coverage provides coverage for liability due to an obligation to21
indemnify, defend, or hold harmless authorized pursuant to Paragraph (1) of22
this Subsection, provided that such insurance coverage is provided only when23
the indemnitor is at least partially at fault or otherwise liable for damages ex24
delicto or quasi ex delicto.25
Section 2. Section 2 of Act No. 492 of the 2010 Regular Session of the Legislature26
is hereby repealed.27
Section 3. This Act shall become effective upon signature by the governor or, if not28
signed by the governor, upon expiration of the time for bills to become law without signature29
by the governor, as provided by Article III, Section 18 of the Constitution of Louisiana. If30 SB NO. 693 ENROLLED
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vetoed by the governor and subsequently approved by the legislature, this Act shall become1
effective on the day following such approval.2
PRESIDENT OF THE SENATE
SPEAKER OF THE HOUSE OF REPRESENTATIVES
GOVERNOR OF THE STATE OF LOUISIANA
APPROVED: