Utah Code 72-17-108. Agreements to indemnify in a railroad contract
Current as of: 2024 | Check for updates
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(1) The provisions of this section apply beginning on May 7, 2025.
Terms Used In Utah Code 72-17-108
- Contract: A legal written agreement that becomes binding when signed.
- Damages: Money paid by defendants to successful plaintiffs in civil cases to compensate the plaintiffs for their injuries.
- Indemnification: In general, a collateral contract or assurance under which one person agrees to secure another person against either anticipated financial losses or potential adverse legal consequences. Source: FDIC
- Person: means :(24)(a) an individual;(24)(b) an association;(24)(c) an institution;(24)(d) a corporation;(24)(e) a company;(24)(f) a trust;(24)(g) a limited liability company;(24)(h) a partnership;(24)(i) a political subdivision;(24)(j) a government office, department, division, bureau, or other body of government; and(24)(k) any other organization or entity. See Utah Code 68-3-12.5
- Railroad: means the same as that term is defined in Utah Code 72-17-102 v2
(2) As used in this section:(2)(a) “Railroad contract” means a contract or agreement between:(2)(a)(i) a railroad; and(2)(a)(ii) another person that could be subject to a civil penalty or fine issued pursuant to this chapter.(2)(b) “Indemnification provision” means a covenant, promise, agreement, or understanding in, in connection with, or collateral to a railroad contract that requires the person to insure, hold harmless, indemnify, or defend the railroad against liability, if:(2)(b)(i) the damages arise out of a civil penalty issued pursuant to this chapter; and(2)(b)(ii) the damages are caused by or resulting from the fault of the railroad or the railroad’s agents or employees.(3) Except as provided in Subsection (4), an indemnification provision in a railroad contract is against public policy and is void and unenforceable.(4) If an indemnification provision is included in a railroad contract, in any action for damages described in Subsection (2)(b)(i), the railroad may seek indemnification from another party to a railroad contract pro rata based on the proportional share of fault of each party, if:(4)(a) the damages are caused in part by the party other than the railroad; and(4)(b) the cause of the damages arose at a time when the party other than the railroad was operating pursuant to the railroad contract.(5) This section may not be construed to impair a contract in existence before May 3, 2023.