Nevada bill would prohibit indemnity clauses

By Keith Goble, Land Line state legislative editor | Wednesday, February 20, 2013

An unfair clause in trucking contracts is the target of a Nevada bill.

Sen. James Settelmeyer, R-Minden, introduced a bill Monday, Feb. 18, that would add Nevada to the list of states to do away with indemnification clauses in trucking contracts. The clauses are set up to protect shippers or hold them harmless from anything that happens with a shipment.

States across the country have been busy in recent years changing rules on indemnity clauses.

In the past year alone Alabama, Hawaii, Massachusetts, Minnesota and South Dakota acted to forbid the provisions in motor carrier contracts. Starting March 28, Michigan will become the 36th state to adopt the protection from the unfair clauses.

A full list of states, and the laws, where protections are in place is available. Other states, including Montana and New York are seeking their own protections.

Supporters say throwing out the clauses in contracts doesn’t change anyone’s ability to collect for damaged goods but will simply hold the responsible party liable.

Affected contracts in Nevada would be defined as “a contract, agreement, or understanding” between a motor carrier and a shipper covering the transportation of property for hire by the motor carrier, entry on property to load, unload or transport property, including the storage of property.

The protection would not apply to intermodal chassis, containers, or other intermodal equipment.

The bill – SB158 – is awaiting assignment consideration in the Senate Transportation Committee.

To view other legislative activities of interest for Nevada, click here.

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