Bill 2398

                    Current Status

Bill Number:               2398
Ratification Number:       557
Act Number                 466
Introducing Body:          House
Subject:                   Hold harmless clauses

(A466, R557, H2398)

AN ACT TO PROVIDE THAT BROAD FORM HOLD HARMLESS CLAUSES IN CERTAIN CONSTRUCTION CONTRACTS AND SUBCONTRACTS SHALL BE AGAINST THE PUBLIC POLICY OF THIS STATE AND VOID AND TO PROVIDE EXCEPTION.

Be it enacted by the General Assembly of the State of South Carolina:

Hold harmless clauses

Section 1. Notwithstanding any other provision of law, a promise or agreement in connection with the design, planning, construction, alteration, repair or maintenance of a building, structure, highway, road, appurtenance or appliance, including moving, demolition and excavating, purporting to indemnify the promisee, its independent contractors, agents, employees, or indemnitees against liability for damages arising out of bodily injury or property damage proximately caused by or resulting from the sole negligence of the promisee, its independent contractors, agents, employees, or indemnitees is against public policy and unenforceable. Nothing contained in this section shall affect a promise or agreement whereby the promisor shall indemnify or hold harmless the promisee or the promisee's independent contractors, agents, employees or indemnitees against liability for damages resulting from the negligence, in whole or in part, of the promisor, its agents or employees. The provisions of this section shall not affect any insurance contract or workmen's compensation agreements; nor shall it apply to any electric utility, electric cooperative, common carriers by rail and their corporate affiliates or the South Carolina Public Service Authority.

Time effective

Section 2. This act shall take effect upon approval by the Governor.