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First, a little background. A Type I Indemnity Clause usually states: SUBCONTRACTOR shall indemnify and hold Prime Contractor and Owner harmless from claims, demands, liabilities, judgments, liens, encumbrances, costs and expenses, including attorney's fees, arising out of, related to, or in connection with the obligations of SUBCONTRACTOR under this Subcontract, or the operations and work conducted by SUBCONTRACTOR or its agents, employees, and subcontractors. This indemnity agreement shall apply without regard to whether or not Prime Contractor or Owner, or Prime Contractor and Owner, are actively or passively negligent in respect to the claim, demand, loss, or liability.
SUBCONTRACTOR will provide the defense of any such claims, and will employ counsel who is satisfactory to Prime Contractor or Owner for that purpose. Prime Contractor and Owner may defend such claims at SUBCONTRACTOR'S expense. SUBCONTRACTOR shall not provide indemnity against claims, liability, loss, or expense, when shown by the final judgment of a court of competent jurisdiction to have been caused by the willful or sole negligence or sole misconduct of Prime Contractor or Owner.
The Legislature is looking at the Type I Indemnity Clause. Unfortunately, the issue is one of contract and not law. Because provisions in a contract between...