ABB Kraftwerke Aktiengesellschaft v. Brownsville Barge & Crane, Inc.
115 S.W.3d 287 | Texas Court of Appeals, 13th District | 2003
What This Case Means for Subcontractors
ABB Kraftwerke signed an indemnity agreement with Brownsville Barge to use a floating crane for lifting a large turbine generator. The agreement required ABB to cover Brownsville Barge's losses even if Brownsville Barge was negligent. ABB later challenged the agreement, claiming it was unfair and signed under pressure. The Texas court upheld the agreement as valid and enforceable, meaning ABB had to pay for claims arising from the lifting work regardless of who was at fault.
Key Takeaways
- •Broad indemnity clauses that cover a contractor's own negligence are enforceable in Texas if both parties agreed to them and received something of value in exchange.
- •Signing an indemnity agreement under time pressure or as a condition to get work does not automatically make it unenforceable—courts will enforce it if the basic contract requirements are met.
- •Before signing any indemnity agreement, understand that you may be liable for the other party's mistakes, injuries, or property damage, not just your own. Negotiate limits on what you'll cover.
ABB would indemnify and hold harmless Brownsville Barge regardless of sole, joint or concurrent negligence.
Frequently Asked Question
Can I be forced to sign an indemnity agreement that makes me pay for someone else's negligence?
Yes, in Texas. If you sign an indemnity agreement and both parties get something of value from the deal, courts will enforce it even if it requires you to cover the other party's negligence. Signing under time pressure or as a condition to get the job does not make it unenforceable. Always review indemnity clauses carefully before signing and negotiate limits on your liability.
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