Louisiana law invalidates certain provisions in motor carrier transportation agreements.

With certain limitations, Louisiana Revised Statute (“La. R.S.”) 9:2780.1 invalidates two potential provisions of motor carrier transportation agreements entered into after January 1, 2011.  First, La. R.S. 9:2780.1 invalidates any provision within a motor carrier transportation contract which seeks to require one party to defend and indemnity the other party for the other party’s own negligent and/or intentional conduct.  Second, La. R.S. 9:2780.1 invalidates any provision within a motor transportation contract which seeks to require one party to procure liability insurance covering the acts or omissions of the other party.   

Other states in the South have taken similar action.

With certain limitations, other southeastern states have also enacted similar anti-indemnity laws regarding motor carrier transportation contracts including: Alabama, Georgia, Florida, Texas, and Tennessee.  Similar legislation was introduced into the Mississippi legislature during the 2012 legislative session and passed by the House of Representative.  However, the legislation died in the Senate judiciary committee before enactment.  La. 9:2780.1 is currently facing constitutional challenges on several grounds by the Louisiana Chemical Association.  Currently, the motor carrier anti-indemnity laws of Alabama, Georgia, Florida, Texas, and Tennessee have not been found unconstitutional.

What to Watch for When Operations Under a Motor Carrier Transportation Contract are Expected in State with Anti-Indemnity Law

A unique choice of law provision of La. 9:2780.1 provides that it shall apply to loading and unloading activities, or services incidental thereto, which occur in Louisiana.  When operations under a motor carrier transportation contract are expected to take place outside Louisiana or another state which has an anti-indemnity law, special consideration should be taken regarding the specific law which will govern the motor carrier transportation contract.  

Allen & Gooch is providing this legal update for informational purposes only. This article should not be construed as legal advice or a legal opinion as to any specific facts or circumstances. You should consult your own attorney concerning your particular situation and any specific legal questions you may have.