FAIR CONTRACTS. (NEW)

View NCGA Bill Details2019-2020 Session
Senate Bill 569 (Public) Filed Wednesday, April 3, 2019
AN ACT TO PROTECT THE INTERESTS OF DESIGNERS, PARTICULARLY SMALL AND WMBE ENTITIES, FROM UNFAIR CONTRACTING AND DUTY TO DEFEND REQUIREMENTS THAT VIOLATE THE EXISTING PUBLIC POLICY OF NORTH CAROLINA.
Intro. by Newton.

Status: Re-ref Com On Rules and Operations of the Senate (Senate action) (May 6 2019)

SOG comments (1):

Long title change

Senate committee substitute to the 1st edition changed the long title.  Original title was AN ACT TO PROTECT THE INTEREST OF CONTRACTORS AND DESIGNERS, AND PARTICULARLY SMALL AND WMBE ENTITIES, FROM UNFAIR CONTRACTING AND DUTY TO DEFEND REQUIREMENTS.

S 569

Bill Summaries:

  • Summary date: Apr 30 2019 - More information

    Senate committee substitute to the 1st edition deletes the proposed changes to GS 22B-1, concerning the invalidity of construction indemnity agreements, and instead provides the following. Amends GS 22B-1 to render contracts for engineering, architectural, landscape architectural, or surveying services void and unenforceable if the parties require that one party will indemnify or hold harmless the other party, or its agents, against liability claims for damages, losses, or expenses. Allows indemnification agreements only for damages resulting from the negligence, recklessness, or intentionally wrongful conduct of the promisor. Modifies the statutory reference regarding promises or agreements under which a public utility is an indemnitee to more specifically refer to subdivision a. of GS 62-3(23), defining public utility. Makes clarifying and conforming changes. Maintains the act's effective date provisions.

    Changes the act's long and short titles.


  • Summary date: Apr 4 2019 - More information

    Amends GS 22B-1 (construction indemnity agreements invalid) by sorting the text into new subsections (a) through (d).  Modifies text now located in subsection (a) by expanding list of those purporting to be held harmless under an indemnity promise or agreement to any other person or entity beyond existing list, and expanding list of damages to economic damages or losses or expenses of any type.  Makes clear in the text designated for subsection (b) that any agreement in subsection (a) may only require indemnity against liability for damages; adds a list specifying the type of damages includes bodily injury to persons, damage to property, economic damages or losses or expenses of any type, which includes attorneys' fees; and modifies existing language to state that the damages must be proximately caused by or result from negligence, either in whole or in part.  Adds entirely new language in subsection (c) that agreements described in (a) or (b) cannot include an obligation to defend the promisee or other listed entities, and prohibits the addition of such an obligation.  Deletes from text designated for subsection (d) language pertaining to public utilities, railroad corporations, and contracts entered into by the Department of Transportation.    

    Effective October 1, 2019, and applies to contracts entered into, amended, or renewed on or after that date.


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