TX STATETexas Court of Appeals, 1st District (Houston)
2013

CMA-CGM (America), Inc. v. Empire Truck Lines, Inc.

416 S.W.3d 495Texas Court of Appeals, 1st District (Houston) • Decided 2013Enforced

HOLDING

A truck driver was injured when equipment owned by CMA-CGM broke during a cargo transfer. CMA tried to use a standard industry contract (UIIA) to force Empire Truck Lines to cover CMA's legal costs and damages. The Texas court ruled that state law prohibits motor carriers from indemnifying equipment owners for the owners' own negligence, making the indemnity clause unenforceable. This protects subcontractors and carriers from being forced to pay for injuries or damages caused by someone else's faulty equipment or negligence.

KEY FINDINGS

Broad Indemnification

Never agree to indemnify a company for their own negligence—Texas law voids these clauses for motor carriers and similar situations

Insurance Requirements

Standard industry contracts (like UIIA) may contain illegal provisions; have a lawyer review before signing, even if the form is 'standard'

Flow-Down

If a contract requires you to insure or defend another party, make sure it's limited to your own actions only, not theirs

FULL COURT OPINION