Inside208

Indemnification bill passes House Judiciary Committee

Posted on May 11, 2012 by Dene Westbrook

Yesterday the House Judiciary Committee passed HB 5466, a bill that would expand the anti-indemnification statute to apply to construction contracts with public entities.

The bill would prohibit an indemnification agreement between a public entity and a contractor if the agreement deals with the design, construction, alteration, repair or maintenance of a structure.

The League testified with concerns about the legislation, mainly that we interpret this to eliminate liability of a contractor when a subcontractor under their control is at fault.

The legislation passed committee unanimously, but we are pushing for amendments to be added on the House floor.

Samantha Harkins works for the Michigan Municipal League handling municipal services and energy and technology issues.  She can be reached at 517-908-0306 or email at sharkins@mml.org

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