CMA-CGM (America), Inc. v. Empire Truck Lines, Inc.
416 S.W.3d 495 | Texas Court of Appeals, 1st District (Houston) | 2013
What This Case Means for Subcontractors
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 Takeaways
- •Never agree to indemnify a company for their own negligence—Texas law voids these clauses for motor carriers and similar situations
- •Standard industry contracts (like UIIA) may contain illegal provisions; have a lawyer review before signing, even if the form is 'standard'
- •If a contract requires you to insure or defend another party, make sure it's limited to your own actions only, not theirs
A provision that is contrary to Subsection (a) is not enforceable.
Frequently Asked Question
Can a contract force me to pay for damages caused by the other company's faulty equipment or negligence?
No. Texas law prohibits indemnity clauses that require you to cover another party's own negligence. Even if a standard contract includes this language, courts will not enforce it. Always have a lawyer review indemnity provisions before signing.
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