S1087-2013 Actions

• Jan 9, 2013: REFERRED TO TRANSPORTATION

S1087-2013 Memo

BILL NUMBER:S1087

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:
S4843/A8254 of 2011-12; Referred to Transportation

FISCAL IMPLICATIONS:
None.

EFFECTIVE DATE:
Immediately.

S1087-2013 Text

 S T A T E   O F   N E W   Y O R K
 
 
                                         1087
 2013-2014 Regular Sessions
 I N  SENATE
 (PREFILED)
 January 9, 2013
 
 Introduced  by  Sen. MAZIARZ -- read twice and ordered printed, and when
 printed to be committed to the Committee on Transportation
 

AN ACT to amend the  transportation  law,  in  relation  to  proscribing
 indemnity agreements in motor carrier transportation contracts
 

THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM
 BLY, DO ENACT AS FOLLOWS:

 

Section 1. The transportation law is amended by adding a  new  section
 182 to read as follows:

 

S  182. INDEMNITY PROVISION IN MOTOR CARRIER TRANSPORTATION CONTRACTS.
 1. FOR THE PURPOSES OF THIS SECTION:

 (A) "MOTOR CARRIER TRANSPORTATION CONTRACT" MEANS A  CONTRACT,  AGREE
 MENT OR UNDERSTANDING COVERING:

 (I)  THE  TRANSPORTATION  OF  PROPERTY FOR COMPENSATION OR HIRE BY THE
 MOTOR CARRIER;
 (II) ENTRANCE ON PROPERTY BY THE MOTOR  CARRIER  FOR  THE  PURPOSE  OF
 LOADING, UNLOADING OR TRANSPORTING PROPERTY FOR COMPENSATION OR HIRE; OR
 (III)  A  SERVICE INCIDENTAL TO ACTIVITY DESCRIBED IN SUBPARAGRAPH (I)
 OR (II) OF THIS PARAGRAPH, INCLUDING, BUT NOT  LIMITED  TO,  STORAGE  OF
 PROPERTY.
 (B)  "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 THE PROMISEE AND SUCH MOTOR CARRIER'S  AGENTS,  EMPLOYEES,
 SERVANTS  OR  INDEPENDENT CONTRACTORS DIRECTLY RESPONSIBLE TO SUCH MOTOR
 CARRIER.
 2. NOTWITHSTANDING ANY PROVISION OF LAW TO THE CONTRARY, A  PROVISION,
 CLAUSE  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
 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
 [ ] is old law to be omitted.
 LBD02261-01-3
 
       S. 1087                             2
 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.
 3.  "MOTOR  CARRIER  TRANSPORTATION  CONTRACT,"  AS  DEFINED  IN  THIS
 SECTION, SHALL NOT INCLUDE THE UNIFORM INTERMODAL INTERCHANGE AND FACIL
 ITIES 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  EQUIP
 MENT.
 

S 2. This act shall take effect immediately.

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