|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.
Introduced as HB1887