Doe anyone have info on the current state of the law on indemnity clauses in contracts? I am under the impression that new legislation was pending and that there is a case before the CA. supreme court.
Thanks for your help
INDEMNITY UPDATE
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dmi
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mpallamary
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I have delved into this issue and as time permits, will pursue further. I note the following Civil Code excerpt:
2782.8. (a) For all contracts, and amendments thereto, entered into
on or after January 1, 2007, with a public agency for design
professional services, all provisions, clauses, covenants, and
agreements contained in, collateral to, or affecting any such
contract, and amendments thereto, that purport to indemnify,
including the cost to defend, the public agency by a design
professional against liability for claims against the public agency,
are unenforceable, except for claims that arise out of, pertain to,
or relate to the negligence, recklessness, or willful misconduct of
the design professional. This section shall not be waived or modified
by contractual agreement, act, or omission of the parties.
Contractual provisions, clauses, covenants, or agreements not
expressly prohibited herein are reserved to the agreement of the
parties.
(b) For purposes of this section, the following definitions apply:
(1) "Public agency" includes any county, city, city and county,
district, school district, public authority, municipal corporation,
or other political subdivision, joint powers authority, or public
corporation in the state. Public agency does not include the State of
California.
(2) "Design professional" includes all of the following:
(A) An individual licensed as an architect pursuant to Chapter 3
(commencing with Section 5500) of Division 3 of the Business and
Professions Code, and a business entity offering architectural
services in accordance with that chapter.
(B) An individual licensed as a landscape architect pursuant to
Chapter 3.5 (commencing with Section 5615) of Division 3 of the
Business and Professions Code, and a business entity offering
landscape architectural services in accordance with that chapter.
(C) An individual registered as a professional engineer pursuant
to Chapter 7 (commencing with Section 6700) of Division 3 of the
Business and Professions Code, and a business entity offering
professional engineering services in accordance with that chapter.
(D) An individual licensed as a professional land surveyor
pursuant to Chapter 15 (commencing with Section 8700) of Division 3
of the Business and Professions Code, and a business entity offering
professional land surveying services in accordance with that chapter.
(c) This section shall only apply to a professional service
contract, or any amendment thereto, entered into on or after January
1, 2007.
*******
I have also enclosed an article and the balance of the CC section. Let me see what else I can develop.
2782.8. (a) For all contracts, and amendments thereto, entered into
on or after January 1, 2007, with a public agency for design
professional services, all provisions, clauses, covenants, and
agreements contained in, collateral to, or affecting any such
contract, and amendments thereto, that purport to indemnify,
including the cost to defend, the public agency by a design
professional against liability for claims against the public agency,
are unenforceable, except for claims that arise out of, pertain to,
or relate to the negligence, recklessness, or willful misconduct of
the design professional. This section shall not be waived or modified
by contractual agreement, act, or omission of the parties.
Contractual provisions, clauses, covenants, or agreements not
expressly prohibited herein are reserved to the agreement of the
parties.
(b) For purposes of this section, the following definitions apply:
(1) "Public agency" includes any county, city, city and county,
district, school district, public authority, municipal corporation,
or other political subdivision, joint powers authority, or public
corporation in the state. Public agency does not include the State of
California.
(2) "Design professional" includes all of the following:
(A) An individual licensed as an architect pursuant to Chapter 3
(commencing with Section 5500) of Division 3 of the Business and
Professions Code, and a business entity offering architectural
services in accordance with that chapter.
(B) An individual licensed as a landscape architect pursuant to
Chapter 3.5 (commencing with Section 5615) of Division 3 of the
Business and Professions Code, and a business entity offering
landscape architectural services in accordance with that chapter.
(C) An individual registered as a professional engineer pursuant
to Chapter 7 (commencing with Section 6700) of Division 3 of the
Business and Professions Code, and a business entity offering
professional engineering services in accordance with that chapter.
(D) An individual licensed as a professional land surveyor
pursuant to Chapter 15 (commencing with Section 8700) of Division 3
of the Business and Professions Code, and a business entity offering
professional land surveying services in accordance with that chapter.
(c) This section shall only apply to a professional service
contract, or any amendment thereto, entered into on or after January
1, 2007.
*******
I have also enclosed an article and the balance of the CC section. Let me see what else I can develop.
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mpallamary
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dmi
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thanks Mike
i have been able to find the info below
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dmi
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info on court of appeals case
I copied this from another thread here but, I cannot seem to locate that thread
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mpallamary
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mpallamary
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Anthony Maffia
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dmi
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Sports wrapup
Okay sports fans, if I have this right, then
Recent years have seen a lot of activity in the legal arena as far as indemnity clauses are concerned.
Recent legislation has made some areas less treacherous for design professionals, especially as far as public agency contracts are concerned.
SB972 has not yet been chaptered
CH 2 is still waiting for their day in court.
So my take away on this is for those entering or considering entering the profession..... take business law classes where the focus is on contract law.
thanks for your help Mike and Greg.
Recent years have seen a lot of activity in the legal arena as far as indemnity clauses are concerned.
Recent legislation has made some areas less treacherous for design professionals, especially as far as public agency contracts are concerned.
SB972 has not yet been chaptered
CH 2 is still waiting for their day in court.
So my take away on this is for those entering or considering entering the profession..... take business law classes where the focus is on contract law.
thanks for your help Mike and Greg.