News : The Demise of Type I Indemnity Clauses in California

THE DEMISE OF TYPE I INDEMNITY CLAUSES IN CALIFORNIA


Firm Partner Robert Freedman advises that
Governor Schwarzenegger recently signed California State Assembly Bill 758 into law, making California among the numerous other states which are bringing an end to Type I indemnity style clauses.

Attorney Freedman notes that AB 758 has been Chaptered by the California Secretary of State under Chapter 394, Statutes of 2005, and becomes law effective January 1, 2006.

Attorney Freedman offers the following legislative background and comment:

  • While this statute is only binding on contracts entered into AFTER January 1, 2006 it can be actively used as persuasive authority on pending cases.


  • When considered in conjunction with the gradual elimination of Additional Insured Endorsements that provide completed operations coverage, this leaves developers and owners 100% liable for any damages caused by their own negligence.


Should you have any questions about how California State Assembly Bill 758 may affect your business endeavors, please contact Firm Partner Robert Freedman at (818) 205-9955.


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Related Attorney(s):
Robert M. Freedman

Related Practice Area(s):
Bad Faith and Coverage
General Litigation

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