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Sponsors
1 Co-sponsor
History
- Referred to judiciary
- Referred to judiciary
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.
Makes indemnification agreements relating to construction contracts void as against public policy
In Assembly Committee · Judiciary · Sponsor Michael Cusick
Full text
The text isn't available here yet. Check nysenate.gov.
Sponsor's memo
Title of bill
An act to amend the general obligations law, in relation to indemnification agreements relating to construction projects
Purpose or general idea of bill
To forbid agreements in construction contracts indemnifying a promisee for damages caused by third parties.
Summary of specific provisions
Section 5-322.1 of the General Obligations Law is amended to forbid not only agreements whereby a promisor indemnifies a promisee for damages caused by the promisee's negligence, but also to agreements whereby a promisor indemnifies a promisee for damages caused by third party negligence.
Justification
Section 5-322.1 of the General Obligations Law, as amended in 1981,prohibits clauses in a construction contract between an owner and a contractor, or between a contractor and a subcontractor, purporting to indemnify the owner or contractor against liability for personal injury or property damage arising from the negligence of such owner or contractor.
However, under current law, contractors or subcontractors can be required to indemnify an owner or contractor for damages due to injuries caused by the negligence of third parties. Since a subcontractor often has no control over other contractors and subcontractors on the job site, it is grossly unfair to place the burden on a subcontractor by requiring it to indemnify the contractor for negligence of those third parties. The subcontractor should be responsible for its own negligence but not for the negligence of unrelated third parties.
PRIOR LEGISLATIVE HISTORY :2013-14 S.1215/A.527; 2011-12: S.3183/A.5026 Died in Judiciary; 2009-2011 S.801/A.2372 Died in Judiciary; 2007-08: Referred to Judiciary, 2005-06: Referred to Judiciary, 2003-04: Held for consideration in Judiciary, 2002: Referred to Judiciary, 2001: Referred to Judiciary, 2000: Referred to Judiciary; reported with amendments, 1999: Referred to Judiciary, 1998: Referred to Judiciary
Fiscal implications
None.
Effective date
This act shall take effect thirty days after it shall become law.
Summaries, headlines and scores are AI-generated from the official bill text. How we score bills. Source: NYS Open Legislation.