NY State Senate Bill 2017-S3240

Senate Bill S3240

2017-2018 Legislative Session

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

download bill text pdf

Archive: Last Bill Status - In Senate Committee Judiciary Committee

Introduced
- In Committee Assembly
- In Committee Senate
- On Floor Calendar Assembly
- On Floor Calendar Senate
- Passed Assembly
- Passed Senate
Delivered to Governor
Signed By Governor

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Actions

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	Assembly Actions - Lowercase Senate Actions - UPPERCASE
Jan 03, 2018	referred to judiciary
Jan 20, 2017	referred to judiciary

2017-S3240 (ACTIVE) - Details

See Assembly Version of this Bill:: A5330
Current Committee:: Senate Judiciary
Law Section:: General Obligations Law
Laws Affected:: Amd §5-322.1, Gen Ob L
Versions Introduced in Other Legislative Sessions:: 2009-2010: S801, A2372
2011-2012: S3183, A5026
2013-2014: S1215, A527
2015-2016: S32, A4267

2017-S3240 (ACTIVE) - Summary

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

2017-S3240 (ACTIVE) - Sponsor Memo

                                 BILL NUMBER:  S3240

 TITLE OF BILL :

An act to amend the general obligations law, in relation to
indemnification agreements relating to construction projects

 PURPOSE :

To forbid agreements in construction contracts indemnifying a promise
for damages caused by third parties.

 SUMMARY OF PROVISIONS :

Section 5-322.1 of the General Obligations Law is amended to forbid
not only agreements whereby a promisor indemnifies a promise for
damages caused by the promisee's negligence, but also to agreements
whereby a promisor indemnifies a promise 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.

 LEGISLATIVE HISTORY :

2015-16: S.32/A.4267;
2013-14: S.1215/A.527;
2011-12: S.3183/A.5026 Died in Judiciary;
2009-10: S.801/A.2372 Died in Judiciary;
2007-08:  Referred to Judiciary;
2005-06: Referred to Judiciary;
2003-04: Held for consideration in Judiciary;
2000: Referred to Judiciary; reported with amendments;
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.

2017-S3240 (ACTIVE) - Bill Text download pdf

                            
 
                     S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                   3240
 
                        2017-2018 Regular Sessions
 
                             I N  S E N A T E
 
                             January 20, 2017
                                ___________
 
 Introduced  by  Sen.  DeFRANCISCO -- read twice and ordered printed, and
   when printed to be committed 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.]
   §  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.
                                                            LBD00256-01-7

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