Page 21 - ATR 2 2015 web

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Law ends shipper indemnification practice in Arkansas

by steve brawner Indemnification agreements force The law, sponsored by Sen. Jon
Contributing Writer a carrier to accept all liability for prob- Woods (R-Springdale), and Rep. Micah
lems that occur during the course of Neal (R-Springdale), is the result of
What parents try to teach their a haul, including those caused by the a lot of hard work on the part of the
children is now the law in Arkansas: If shipper’s negligence on the shipper’s Arkansas Trucking Association. In 2013,
it’s your fault, don’t try to blame some- own property. The practice became the ATA made passing an anti-indem-
one else. more common a number of years ago nification law one of its three legisla-
Act 572 makes it illegal for ship- at a time when the trucking industry tive priorities, but the issue didn’t get
pers in Arkansas to require carriers had more trucks than freight to haul. enough attention because the focus was
to indemnify them as a condition for Big shippers, particularly those with on the two other efforts, both of which
doing business. Arkansas is the 42 dominant market positions, learned were successful: ending the sales tax on
nd
state to ban the practice. The law does they could include such clauses in their trucks and trailers, and ensuring that
not affect current contracts or cargo contracts because carriers needing work owner-operators could purchase work-
claims. would not resist. 

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