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After extended debate, Utah House limits indemnity clauses for motor carriers
Summary
Lawmakers passed HB73 to curtail enforceability of broad indemnity or hold-harmless clauses that shift liability for negligence onto motor carriers. Sponsors said the change levels the playing field for smaller carriers; opponents and questioners sought clarity on scope and unintended consequences.
Representative Ipsen, sponsor of House Bill 73, told the House that the bill addresses widespread contractual indemnity clauses that small motor carriers are asked to sign by large shippers and facilities. He said those clauses can require carriers to accept responsibility even for catastrophic losses at a shipper's facility, putting small companies at existential risk.
Floor members questioned whether the change would broadly nullify freedom of contract or whether it is limited to clauses that attempt to shield a party from liability for its own negligence or intentional acts. The sponsor and supporters pointed to precedent in other industries (construction) and argued the bill simply prevents parties from contracting around the state's comparative-negligence framework and from forcing carriers to insure losses caused by others.
Representative Ipsen's summation used an anecdotal appeal: "my name is Don Ipsen, and I drive a truck," and he urged members to support the fairness measure for fragmented transportation businesses that lack negotiating power with large shippers. After a motion to call previous question and final debate, the House voted to pass HB73; the transcript records the bill passed and will be transmitted to the Senate (66 yes, 6 no recorded in the floor announcement).
Next steps: HB73 will be transmitted to the Senate for consideration. The bill sponsor and supporters said the measure brings statutory clarity to contractual disputes the industry has faced.
