HF 256

as introduced - 87th Legislature (2011 - 2012) Posted on 01/27/2011 11:10am

A bill for an act
relating to transportation; regulating motor carrier transportation contracts;
prohibiting indemnification provisions; proposing coding for new law in
Minnesota Statutes, chapter 221.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:

Section 1.

new text begin [221.87] INDEMNITY PROVISION IN MOTOR CARRIER
TRANSPORTATION CONTRACTS.
new text end

new text begin Subdivision 1. new text end

new text begin Void. new text end

new text begin Notwithstanding any law to the contrary, a provision,
clause, covenant, or agreement contained in, collateral to, or affecting a motor carrier
transportation contract that purports to indemnify, defend, or hold harmless, or has the
effect of indemnifying, defending, or holding harmless, the promisee from or against any
liability for loss or damage resulting from the negligence or intentional acts or omissions
of the promisee is against the public policy of this state and is void and unenforceable.
This subdivision is limited to the extent provided in subdivision 2.
new text end

new text begin Subd. 2. new text end

new text begin Agreements to insure. new text end

new text begin (a) Subdivision 1 does not affect the validity
of an agreement under which a promisor agrees to provide specific insurance coverage
for the benefit of others if:
new text end

new text begin (1) a promisor agrees to provide specific types and limits of insurance;
new text end

new text begin (2) a claim arises within the scope of the specified insurance; and
new text end

new text begin (3) the promisor did not obtain and keep in force the specified insurance.
new text end

new text begin For a claim described in this paragraph, the promisee is entitled to indemnification from
the promisor to the same extent as the specified insurance.
new text end

new text begin (b) The indemnification stated in paragraph (a) is not available if:
new text end

new text begin (1) the specified insurance was not reasonably available in the market; and
new text end

new text begin (2) the promisor so informed the other party to the agreement to insure before
signing the agreement, or signed the agreement subject to a written exception as to the
nonavailable insurance.
new text end

new text begin (c) Subdivision 1 does not affect the validity of an agreement under which:
new text end

new text begin (1) a promisor agrees to provide specific types and limits of insurance;
new text end

new text begin (2) a claim arises within the scope of the specified insurance; and
new text end

new text begin (3) the insurance provided by the promisor includes a self-insured retention or a
deductible amount.
new text end

new text begin For a claim described in this paragraph, the promisee is entitled to indemnification from
the promisor to the full extent of the deductible amount or self-insured retention.
new text end

new text begin (d) A promisor's obligation to provide specified insurance is not waived by a
promisee's failure to require or insist upon certificates or other evidence of insurance.
new text end

new text begin Subd. 3. new text end

new text begin Definitions. new text end

new text begin For the purposes of this section:
new text end

new text begin (1) "motor carrier transportation contract" means a contract, agreement, or
understanding covering:
new text end

new text begin (i) the transportation of property for compensation or hire by the motor carrier;
new text end

new text begin (ii) entrance on property by a motor carrier or a private carrier for the purpose of
loading, unloading, or transporting property; or
new text end

new text begin (iii) a service incidental to activity described in item (i) or (ii), including, but not
limited to, the storage of property; and
new text end

new text begin (2) "promisee" means the promisee and any agents, employees, servants, or
independent contractors who are directly responsible to the promisee, but does not
include motor carriers party to a motor carrier transportation contract with the promisee
or the motor carrier's agents, employees, servants, or independent contractors directly
responsible to the motor carrier.
new text end

new text begin Subd. 4. new text end

new text begin Exclusion. new text end

new text begin "Motor carrier transportation contract," as defined in this
section, does not include 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.
new text end

new text begin EFFECTIVE DATE; APPLICATION. new text end

new text begin This section is effective the day following
final enactment and applies to existing contracts on that date and contracts entered into
or renewed on or after that date.
new text end