Indiana and North Carolina Pass Anti-Duty-To-Defend Statutes

Submitted by CourtneyHolmes on Mon, 11/25/2019 - 18:49
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{"version":"0.3.0","atoms":[],"cards":[],"markups":[["b"],["strong"],["a",["href","https:\/\/trackbill.com\/bill\/indiana-senate-bill-230-unlawful-indemnity-agreements\/1614322\/"]],["a",["href","https:\/\/www.ncleg.gov\/BillLookUp\/2019\/H871"]],["a",["href","https:\/\/www.ncleg.gov\/Sessions\/2019\/Bills\/House\/PDF\/H871v4.pdf"]],["i"],["a",["href","https:\/\/www.aia.org\/resources\/85486-the-risk-management-program"]],["em"]],"sections":[[1,"p",[[0,[],0,"In\n2019, both Indiana and North Carolina passed Anti-Duty-To-Defend statutes. Both\nbills have been signed by their respective governors and are now, therefore,\nlaw. This article provides a brief description of both laws and links to additional\ninformation."]]],[1,"p",[[0,[0,1],2,"Indiana"]]],[1,"p",[[0,[],0,"Indiana\nSenate Bill 230, entitled \u201cUnlawful indemnity agreements\u201d was signed into law\nby Indiana\u2019s Governor on April 24, 2019, and applies to all contracts entered\ninto on or after July 1, 2019."]]],[1,"p",[[0,[],0,"According\nto the Indiana statute tracking system, the bill \u201c[p]rovides that the law\nconcerning indemnity agreements in construction or design contracts applies to\ncertain design-build contracts. [The bill specifies] that \u2018sole negligence\u2019 for\npurposes of liability under a construction or design contract does not include:\n(1) vicarious liability; (2) imputed negligence; or (3) assumption of a\nnondelegable duty. [The bill also specifies] that provisions in certain\nprofessional services contracts requiring indemnification or defense of a\npromisee for liability are void.\u201d"]]],[1,"p",[[0,[],0,"Information\nrelated to the Indiana law, including the complete text, can be found "],[0,[2],1,"here"],[0,[],0,".\n"]]],[1,"p",[[0,[0],1,"North\nCarolina"]]],[1,"p",[[0,[],0,"North\nCarolina House Bill 871, entitled \u201cFair Contracts\u201d was signed into law by North\nCarolina\u2019s Governor on July 8, 2019, and applies to contracts entered into,\nrenewed, or amended on or after August 1, 2019. "]]],[1,"p",[[0,[],0,"According\nto the North Carolina statute tracking system, the \u201cbill would establish a\nseparate statement regarding the public policy for design and planning\ncontracts. The bill would establish as void and against public policy any\ncontract agreement for engineering, architectural, landscape architectural or\nsurveying services purporting to require that one party to the agreement\nindemnify, hold harmless, or defend the other party, its independent\ncontractors, agents, employees, or any other person or entity. Exempt would be\ncontract agreement providing only for indemnification for damages or expenses\nto the extent resulting from the negligence, recklessness, or intentionally\nwrongful conduct of the promisor, its employees, agents, or other persons\nutilized by the promisor in the performance of the contract.\u201d "]]],[1,"p",[[0,[],0,"Information\nrelated to the North Carolina law can be found "],[0,[3],1,"here"],[0,[],0,",\nand the complete text can be found "],[0,[4],1,"here"],[0,[],0,"."]]],[1,"p",[[0,[],0,"Professional\nliability insurance may not cover defense costs incurred as a result of a duty\nto defend because they typically do not cover claims by third parties where\ntheir insureds have not violated the applicable standard of care. Therefore, architects\nmay find increased protection from these statutes. Of course, the contract(s)\nat issue must comply with the statutory requirements. The courts of Indiana and\nNorth Carolina have yet to interpret the statutes."]]],[1,"p",[[0,[5],1,"AIA\nhas provided this article for general informational purposes only. The\ninformation provided is not legal opinion or legal advice. The "],[0,[6,7],2,"Risk Management Program"],[0,[],0," "],[0,[5],1,"posts new materials\nand resources periodically."]]]]}
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Indiana and North Carolina Pass Anti-Duty-To-Defend Statutes
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Risk Management, Duty to Defend
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