Indemnity Issues Critical to Truckers
Arizona is now one of 27 states (and rising) to
one-sided indemnity terms in transportation contracts
Arizona now has its very own anti-indemnity statute,
which in theory prevents shippers from burdening motor carriers with unfair risk
shifting and expensive liability exposures. House Bill 2359 made its way from
last year's dead stop through the Legislature and ultimately passed both houses
and was signed into law by Governor Brewer. Arizona is now one of 27 states (and
rising) to preclude one-sided indemnity terms in transportation contracts.
Unfair indemnity terms will be void and typically
excised from transportation contracts.
The law will provide that Motor Carriers and promisees
may not agree to defend, indemnify or hold harmless each other for claims
arising from either the carrier's or shipper's negligence.
If you have questions or comments, please contact me for
a current white paper and fancy map. If your organization would prefer a
presentation on do's and don'ts and how shippers will attempt to circumvent
these several laws, call me.
And by the way, you should be reviewing your shipping
contracts more regularly than every 10 or 20 years (they're stale).