AB 50

Under current law, a party shipping goods with a motor carrier and the motor

carrier are generally free to agree to the terms under which the motor carrier will

transport the goods and provide related shipping services. Where certain shipping

documents are used, the law includes certain presumptions but these presumptions

may generally be varied by agreement.

This bill prohibits, and renders void and unenforceable, any provision of a

motor carrier transportation contract, or covenant or agreement collateral to or

affecting a motor carrier transportation contract, from indemnifying, holding

harmless, or requiring the motor carrier to provide a defense to the "promisee" or its

employees or affiliates from or against any liability for loss or damage resulting from

the negligence or intentional acts or omissions of the promisee or its employees or

affiliates. Under the bill, a "promisee" is a person, including an individual or a

business entity, that enters into a motor carrier transportation contract with a motor

carrier (typically the shipper of goods). An "affiliate" of the promisee includes agents

of the promisee and independent contractors directly responsible to the promisee.

A "motor carrier transportation contract" means any agreement, regardless of

whether it is written, oral, express, or implied, between a motor carrier and a

promisee covering the transportation of property for hire by the motor carrier; the

motor carrier's entrance on property for the purpose of loading, unloading, or

transporting property for hire; or any service of the motor carrier incidental to either

of these activities, including the storage of property.