Indemnification clause vetoed

The Minnesota Trucking Association supported a bill to prohibit one-way indemnification clauses in contracts, but Gov. Tim Pawlenty vetoed the bill.

The association asked for the legislation because shippers are increasingly requiring carriers to sign freight-hauling contracts that include total indemnification clauses that relieve the shipper of all liability, even in cases of the shipper’s own negligence.

In his veto letter, Pawlenty wrote, “Private parties should be able to negotiate contracts free from governmental interference, especially where the parties are sophisticated and the bargaining power between them is not egregiously tilted in favor of one.”

Rep. Terry Morrow (DFL-St. Peter) and Sen. Steve Murphy (DFL-Red Wing) sponsor the bill.

HF3117/ SF2469*/CH387