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.
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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