August 15, 2013. General open-ended contract indemnification clauses have been challenged in court through the United States for years as being void and unenforceable for public policy reasons. Iowa Code Sec. 537A.5, effective July 1, 2011, in part reads as follows: ". . . a provision in a construction contract that requires one party to the construction contract to indemnify, hold harmless, or defend any other party to the construction contract, including the indemnitee's employees, consultants, agents, or others for whom the indemnitee is responsible, against liability, claims, damages, losses, or expenses, including attorney fees, to the extent caused by or resulting from the negligent act or omission of the indemnitee or of the indemnitee's employees, consultants, agents, or others for whom the indemnitee is responsible, is void and unenforceable as contrary to public policy." This legislation is narrowly tailored and only applies to construction contracts and it voids indemnification provisions requiring indemnification to the extent caused by or resulting from the negligent act or omission of the other party to the contract or persons the other party is responsible for. If you are involved in construction contract activity make sure you know your rights and obligations. For more information contact the Goosmann Law Firm, 410 5th Street, Sioux City, Iowa 51101. Phone: 712-226-4000. Email: info@goosmannlaw.com.
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