SB 569 — Fair Contracts.

GENERAL ASSEMBLY OF NORTH CAROLINA SESSION 2019 S 12 SENATE BILL 569* Judiciary Committee Substitute Adopted 4/30/19 Short Title:

Contractor/Designer Fair Contracting.Contracts.

Senator Newton (Primary Sponsor).

Rules and Operations of the Senate April 4, 2019 A BILL TO BE ENTITLED AN ACT TO PROTECT THE INTERESTINTERESTS OF CONTRACTORS AND DESIGNERS, AND PARTICULARLY SMALL AND WMBE ENTITIES, FROM UNFAIR CONTRACTING AND DUTY TO DEFEND REQUIREMENTS.REQUIREMENTS THAT VIOLATE THE EXISTING PUBLIC POLICY OF NORTH CAROLINA.

(a) Any promise or agreement in, or in connection with, a contract contract, promise, or agreement relative to the design, planning, construction, alteration, repair or maintenance of a building, structure, highway, road, appurtenance or appliance, including moving, demolition and excavating connected therewith, purporting to indemnify or hold harmless the promisee, the promisee's independent contractors, agents, employees, or indemnitees anyother person or entity against liability for damages arising out of (i) bodily injury to persons or persons, (ii) damage to property property, (iii) economic damages, or (iv) losses or expenses of any type, including attorneys' fees, proximately caused by or resulting from the negligence, in whole or in part, of the promisee, its independent contractors, agents, employees, or indemnitees,anyindemnitees, other person or entity is against public policy and is void and unenforceable.

(b) Nothing contained in this section shall prevent or prohibit a Any contract, promise or agreement whereby described in subsection (a) of this section may only require that a promisor shall indemnifyorindemnify or hold harmless anypromiseeany promisee or thepromisee'sthe promisee's independent contractors,agents,contractors, agents, employees or indemnitees against liabilityforliability for damages arising out of (i) bodilyinjury to persons, (ii) damage to property, (iii) economic damages, or (iv) losses or expenses of any type, including attorneys' fees, proximatelycaused by or resulting from the sole negligence negligence, in whole or in part, of the promisor, its agents or employees.

(c)(b) InAny anypromise contract, promise, or agreement describedin, in subsectionsconnection (a)with, andor (b)collateral ofto thisa sectioncontract relativeor toagreement designfor engineering, architectural, landscape architectural, or planning,surveying theservices obligationpurporting to indemnifyrequire orthat holdone harmlessparty shallto notthe includeagreement anindemnify, obligationhold toharmless, or defend the promisee,other theparty, promisee'sits independent contractors, agents, employees, or any other person or entity.entity, against liability or claims for damages, losses, or expenses, including attorneys' fees, is against public policy and is void and unenforceable, except for a promise or agreement providing only for indemnification for damages or expenses to the extent resulting from the negligence, recklessness, or intentionally wrongful conduct of the promisor, its employees, agents, or other persons utilized by the promisor in the performance of the contract.

An(c) obligationThis tosection defend shall not beaffect imposedan byinsurance contract, workers' compensation, or any other termsagreement ofissued theby contract,an promise,insurer, ornor agreement.shall this section apply to promises insurer.

(d) ThisSubsection section(a) shallof not affect an insurance contract, workers' compensation, or any otheragreement issued byan insurer,norshall this section applytoshall promisesnot oragreementsapply underto whichany aof publicthe utilityfollowing: as defined in G.S.

62-3(23)(1) includingPromises or agreements under which a railroadpublic corporationutility as andefined indemnitee.in G.S.

This62-3(23) section shall not apply to contracts entered into by the Department of Transportation pursuant to G.S.

136-28.1.insurer."62-3(23)a. SECTION 2.

including a railroad corporation as is an indemnitee.

*S569-v-2* General Assembly Of North Carolina Session 2019 (2) This section shall not apply to contracts Contracts entered into by the Department of Transportation pursuant to G.S.

136-28.1." SECTION 2.

*S569-v-1*Page 2 Senate Bill 569*-Second Edition