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Sponsors
1 Co-sponsor
History
- Referred to transportation
- Referred to transportation
Companion bill
The same bill in the other chamber. A bill becomes law when one version passes both houses and the governor signs it, so either number can carry it.
Proscribes indemnity agreements in motor carrier transportation contracts
In Assembly Committee · Transportation · Sponsor Donna Lupardo
Full text
The text isn't available here yet. Check nysenate.gov.
Sponsor's memo
BILL NUMBER:S4843
Title of bill
An act to amend the transportation law, in relation to proscribing indemnity agreements in motor carrier transportation contracts
Purpose of general idea of bill
Article 8 of the Transportation Law is amended by adding Section 182, This section will prohibit the use of indemnification clauses in contracts between shippers and common earners.
Summary of specific provisions
Section 182(1)(a) defines "motor carrier transportation contract. Section 182(1)(b) defines "promisee". Section 182(2) makes any 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.
Justification
Current law does not prohibit a shipper from including indemnification language in the contract between the shipper and motor carrier. The indemnification absolves the shipper of all liability for damage to goods regardless of fault. For example, if a shipment of produce is damaged in the warehouse because it was kept there too long, it is the responsibility of trucking company because of the indemnification provision in the contract.
Because indemnification language is commonly included in contracts,. motor carriers have no choice but to accept the terms. Twenty-five states (thirteen of them in the past two years) have passed similar legislation to address this growing problem.
This legislation will not limit anyone's ability to collect for damaged goods but will simply hold the responsible party liable.
Prior legislative history
None.
Fiscal implications
None.
Effective date
Immediately.
Summaries, headlines and scores are AI-generated from the official bill text. How we score bills. Source: NYS Open Legislation.