The Senate Civil Law Committee heard HB 1015 sponsored by Sen. Bray, Sen. Tallian and Sen. Glick on unlawful indemnity agreements. The bill provides that the law concerning indemnity agreements in construction or design contracts applies to certain design-build contracts in response to a 2017 Court of Appeals decision (Wilhem Construction v. Secura Insurance, 86 N.E.3d 234 (Ind. Ct. App. 2017). The second section of the bill specifies that a provision in a professional services contract that requires indemnification and defense of a promisee for certain liability is void. Specifies that “sole negligence” for purposes of liability under a construction or design contract does not include: (1) vicarious liability; (2) imputed negligence; or (3) assumption of a nondelegable duty.
The bill was amended to remove the second section and refer the matter to a summer study committee. Extensive testimony was heard from the insurance industry, trade associations, and industry practitioners. The amended bill passed 6-1.
Read the bill at https://iga.in.gov/legislative/2018/bills/house/1015