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House of Representatives
Session of 2019 - 2020 Regular Session

MEMORANDUM

Posted:	September 3, 2019 03:14 PM
From:	Representative Michael J. Driscoll and Rep. Todd Stephens
To:	All House members
Subject:	(REVISED) Anti-Indemnity in Construction Contracts

In the near future, I will be introducing legislation to amend Act 164 of 1970, Relating to Indemnification Agreements to prohibit certain indemnification agreements in construction contracts. Currently, Pennsylvania does not have an anti-indemnity statute regarding construction contracts; therefore Pennsylvania has no statutory prohibition of broad and intermediate forms of indemnity. Due to the lack of a Pennsylvania anti-indemnity statute, many Pennsylvania construction contractors confront the unfair practice of having to accept liability for another party’s negligence when entering into construction contracts. This legislation would allow for a limited form of indemnification, exclusively for losses caused by the negligence of the indemnifying party (Indemnifier). Any negligence of the indemnified party (Indemnitee) will bar a claim for indemnification. This legislation is similar to anti-indemnity statues in neighboring states like Delaware, New York, and Ohio. 45 states have enacted some form of anti-indemnity statutes limiting the enforceability of various forms of indemnity clauses in construction contracts. I urge you to join me in ensuring that the Indemnifier provides indemnity only for losses arising out of its own negligent conduct by co-sponsoring this legislation.

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