SB 589

Under current law, any provision in an agreement, other than an insurance

contract or worker's compensation plan, relating to the construction, alteration,

repair, or maintenance of a building that limits or eliminates tort liability is against

public policy and void. The Wisconsin Court of Appeals, in

Gerdmann v. U.S. Fire

Insurance Co.

, 119 Wis. 2d 367 (Ct. App. 1984), held that this law does not apply to

an indemnity clause in a contract in which a subcontractor agreed to hold the

contractor harmless from any liability for damages resulting from the work of the

contractor or subcontractor under the contract.

This bill overturns that decision, providing that construction contracts that

require a person to indemnify or hold harmless another person from, or insure or

defend another person against, any claim or damage resulting from the acts or

omissions of the other person are against public policy and void. The bill also

provides that any clause that is a part of a construction contract and that waives a

person's right of subrogation is against public policy and void.