Page 21 - ATR 5 2012 web 2

who’s to blame?

ATA to lobby for anti-indemnification law in Arkansas

By steve Brawner

Contributing Writer

The Arkansas Trucking Association
(ATA) will attempt to pass a bill in
the upcoming legislative session that
will make indemnification agreements
between shippers and carriers a thing
of the past in this state. Thirty-five (35)
states already have done so, most in the
past few years.
Indemnification agreements force
a carrier to accept all fault for problems
that occur during the course of a haul,
including those caused by the shipper’s
negligence. They cover claims that come
as a result of injury, damage to equip-
ment or damage to a load.
According to Lane Kidd, ATA’s pres-
ident, the practice became more com-
mon a number of years ago at a time
when the trucking industry had more
trucks than freight to haul. Big ship-
pers, particularly those with dominant
market positions, learned they could “we doN’t miNd beiNg resPoNsible for
include such clauses in their contracts our NegligeNce, but we doN’t waNt to be
because carriers needing work would
sign them. resPoNsible for a shiPPer’s NegligeNce.”
“If I own a trucking company and
a shipper is promising 10 loads a day, —stePheN selig, PresideNt aNd coo, maVericK usa
but I have to do assume that liability
to get the freight, I’m probably going
to do it,” Kidd said. “We’re attempt- The bill will prohibit a motor car- indemnification agreements remove
ing to put some common sense back rier and a shipper from agreeing to an a shipper’s responsibility for its own
into the equation. No industry should indemnity clause that holds the ship- actions. For example, a driver may be
underwrite the negligent acts of another per harmless from its own negligence, injured as a result of a mistake made
industry.” omissions or intentional acts. by the shipper’s employee while load-
In Arkansas, the clauses are appear- Kidd said the ATA has broached the ing steel at a steel mill, or a trailer may
ing primarily in the natural gas, timber topic with a few legislators who have be damaged when a steel coil dropped
and agriculture-related sectors, but not seemed responsive, but the ATA has yet onto it.
so much in retail accounts where the to finalize a sponsor for the bill. Stephen Selig, Maverick’s president
shipper is transporting finished goods, For a flatbed carrier like North
Kidd said. Little Rock, Ark.-based Maverick USA, 

arkansas truCking rePort | issue 5 2012 21