Both chambers of the Texas legislature have passed HB 2093, which voids indemnity and additional insured (AI) provisions in construction contracts under circumstances. A party to a construction contract can no longer contract for indemnification and additional insured coverage for damages arising out of the party’s own negligence from another party to the contract. There are exceptions. The prohibition does not apply to residential construction contracts and does not apply to public works projects (but see other existing laws on PW projects). Also an employer may still be contractually required to indemnify and provide AI coverage for suits brought by its own employees. The bill has been signed by the governor and generally takes effect and applies to contracts and projects after January 1, 2012. [of interest, his bill pitted certain tort reformers against the lobby for construction subcontractors]. To view the bill, click on http://www.legis.state.tx.us/tlodocs/82R/billtext/pdf/HB02093F.pdf
And the Governor Vetoes:
~SB 191 which would have required the Texas Medical Board to accept certain rulings of the State Office of Administrative Hearings. The governor’s veto message says the TMB is better suited than an administrative law judge to make final rulings.
~HB 242 which would have banned texting while driving. The governor’s veto message says the bill micromanages the behavior of adults.
~HB 1429 which would have created a new cause of action allowing a tenant to sue a landlord who fails to provide the tenant with a copy of the lease. The governor’s message says the bill will drive up the cost of rent.
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Chamberlain♦McHaney, with offices in Austin and San Antonio, handles all types of civil litigation throughout the state. The firm is A-V (highest peer review) rated by Martindale-Hubbell (Bar Registry of Preeminent Lawyers) and is listed in A.M. Best’s Directory of Recommended Attorneys. For information regarding our areas of practice and a list of representative clients, please visit: www.chmc-law.com.
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We will cover this and other important developments at our full day, full accredited 16th Annual Ultimate Claims Handling Seminar on October 7, 2011 at CityPlace Conference Center in Dallas, Texas. Mark your calendars now and save the date.