HF 3117

1st Engrossment - 86th Legislature (2009 - 2010) Posted on 03/11/2010 11:01am

A bill for an act
relating to transportation; regulating 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 provision of 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 agreements whereby a promisor agrees to provide specific insurance coverage for
the benefit of others.
new text end

new text begin (b) If:
new text end

new text begin (1) a promisor agrees to provide specific types and limits of insurance; and
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 then, as to that claim and regardless of subdivision 1, the promisee shall have
indemnification from the promisor to the same extent as the specified insurance.
new text end

new text begin (c) The indemnification stated in paragraph (b) 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 (d) If:
new text end

new text begin (1) a promisor agrees to provide specific types and limits of insurance; and
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 then, as to that claim and regardless of subdivision 1, the promisee shall have
indemnification from the promisor to the full extent of the deductible amount or
self-insured retention.
new text end

new text begin (e) 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:
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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
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new text begin (iii) a service incidental to activity described in item (i) or (ii), including, but not
limited to, 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 except for motor
carriers party to a motor carrier transportation contract with promisee, and such 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, shall 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

Sec. 2. new text begin EFFECTIVE DATE; APPLICATION.
new text end

new text begin Section 1 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