senate Bill S1087

2013-2014 Legislative Session

Proscribes indemnity agreements in motor carrier transportation contracts

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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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Senate Actions - UPPERCASE
Jan 08, 2014 referred to transportation
Jan 09, 2013 referred to transportation

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S1087 - Bill Details

See Assembly Version of this Bill:
A3673
Current Committee:
Law Section:
Transportation Law
Laws Affected:
Add ยง182, Transp L
Versions Introduced in 2011-2012 Legislative Session:
S4843, A8254

S1087 - Bill Texts

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Proscribes indemnity agreements in motor carrier transportation contracts.

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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.

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

                                  1087

                       2013-2014 Regular Sessions

                            I N  S E N A T E

                               (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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