senate Bill S3183

2011-2012 Legislative Session

Makes indemnification agreements relating to construction contracts void as against public policy

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Archive: Last Bill Status - In Committee


  • Introduced
  • In Committee
  • On Floor Calendar
    • Passed Senate
    • Passed Assembly
  • Delivered to Governor
  • Signed/Vetoed by Governor

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Actions

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Assembly Actions - Lowercase
Senate Actions - UPPERCASE
Jan 04, 2012 referred to judiciary
Feb 10, 2011 referred to judiciary

S3183 - Bill Details

See Assembly Version of this Bill:
A5026
Current Committee:
Law Section:
General Obligations Law
Laws Affected:
Amd ยง5-322.1, Gen Ob L
Versions Introduced in 2009-2010 Legislative Session:
S801, A2372

S3183 - Bill Texts

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Makes indemnification agreements, relating to construction contracts void as against public policy.

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BILL NUMBER:S3183

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:
2007-08: A.9639 - Referred to Judiciary
2006-07: A.4742A - Referred to Judiciary
2005-06: A.2726 - Referred to Judiciary
2003-04: - Held for Consideration in Judiciary
2001-02: A.5410 - Referred to Judiciary
2000: A.4742 - Referred to Judiciary
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.

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                    S T A T E   O F   N E W   Y O R K
________________________________________________________________________

    S. 3183                                                  A. 5026

                       2011-2012 Regular Sessions

                      S E N A T E - A S S E M B L Y

                            February 10, 2011
                               ___________

IN  SENATE  --  Introduced by Sen. DeFRANCISCO -- read twice and ordered
  printed, and when printed to be committed to the Committee on  Judici-
  ary

IN  ASSEMBLY  -- Introduced by M. of A. CUSICK -- read once and referred
  to the Committee on Judiciary

AN ACT to amend the general obligations law, in relation to indemnifica-
  tion agreements relating to construction projects

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

  Section 1. Subdivision 1 of section 5-322.1 of the general obligations
law, as amended by chapter 67 of the laws of 1993, is amended to read as
follows:
  1.   A  covenant,  promise,  agreement  or  understanding  in,  or  in
connection with or collateral to a contract or agreement relative to the
construction, alteration, repair or maintenance of  a  building,  struc-
ture,  appurtenances  and  appliances  including  moving, demolition and
excavating connected therewith, purporting to indemnify or hold harmless
the promisee against liability for damage arising out of  bodily  injury
to  persons  or  damage  to  property  NOT  contributed to, caused by or
resulting from the negligence OR OTHER CULPABLE ACT  of  the  [promisee,
his]  PROMISOR,  ITS agents [or], employees, SUBCONTRACTORS or [indemni-
tee, whether such negligence be in whole or in part,] VENDORS is against
public policy and is void and unenforceable; provided that this  section
shall  not  affect  the  validity  of  any  insurance contract, workers'
compensation agreement or other agreement issued by an admitted insurer.
[This subdivision shall not preclude a promisee  requiring  indemnifica-
tion  for  damages  arising out of bodily injury to persons or damage to
property caused by or resulting from the negligence  of  a  party  other
than the promisee, whether or not the promisor is partially negligent.]
  S  2.  This  act shall take effect on the thirtieth day after it shall
have become a law.

 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.
                                                           LBD00504-01-1

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