Lobbying Affiliate: MML&K Government Solutions

Can a contract contain terms that indemnifies a party for its own negligence?, Business First, Legal Forum, December 13, 2013

Attorneys

Business First, Legal Forum, December 12, 2013

Authored by Robert T. Watson

Kentucky recognizes that parties may enter into an indemnification agreement in a contract. If a party is going to exempt itself from its own future negligence, the language should be clear and understandable so that the agreeing party will know what right it is contracting away. Such a provision is strictly construed against the party seeking to enforce it. Furthermore, an indemnification provision may be held unenforceable if there is disparity in the parties' bargaining power or the provision violates public policy. A party cannot contract away liability for damages caused by that party's own failure to comply with a duty imposed by a safety statute. In addition, Kentucky has an anti-indemnity statute relating to construction contracts. If you are seeking to contractually indemnify you or your business, it is recommended that you consult a lawyer to review the provision.

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