HB773 Alabama 2010 Session

Summary

Primary Sponsor

Ron Johnson

Republican

Session

Regular Session 2010

Title

Motor carriers, contracts requiring indemnification of entity for losses caused by entity's negligence, etc., unenforceable and void, Sec. 37-2-21 am'd.

Summary

HB773 would make any contract clause that requires a motor carrier to indemnify another party for losses caused by that party's own negligence or intentional acts void and unenforceable in Alabama.

What This Bill Does

The bill adds a prohibition to motor carrier contracts that would make a promisee indemnify the carrier for losses resulting from the promisee's own negligence or intentional acts. It keeps the carrier liable for its own negligence or for losses caused by other carriers, and it preserves existing remedies under current law. It defines key terms and includes a carve-out for intermodal interchange agreements (like the UIIA) and similar intermodal arrangements. The act is severable and becomes effective immediately after the Governor signs it, with existing law remaining intact for other aspects of liability.

Who It Affects

• Motor carriers: cannot require shippers or other parties to indemnify the carrier for the carrier's own negligence or intentional acts; such clauses would be void.
• Shippers/other promisees: cannot be forced to indemnify motor carriers for the carriers' own negligence or intentional acts; they retain rights and remedies under current law.
• Intermodal/interchange participants (e.g., those using UIIA or similar agreements): not covered by this prohibition due to the carve-out, so those agreements may continue to govern indemnification arrangements.

Key Provisions

• Prohibits any provision in a motor carrier transportation contract that indemnifies, defends, or holds harmless the promisee against losses from the promisee's own negligence or intentional acts.
• Requires that existing liability for losses or damages caused by the carrier or other carriers remains under law; contracts cannot remove this liability.
• Defines terms: motor carrier, motor carrier transportation contract, and promisee for the purposes of this prohibition.
• Carves out intermodal/containers/intermodal equipment agreements (UIIA and related) from the prohibition.
• States the provisions are severable; immediate effectiveness upon Governor's approval; preserves other remedies under current law.

AI-generated summary using openai/gpt-5-nano on Feb 25, 2026. May contain errors — refer to the official bill text for accuracy.

Subjects

Motor Vehicles