The indemnity clause Massachusetts will not enforce
M.G.L. c.85 s.37 is the most consequential provision in the Massachusetts corpus for anyone signing haul contracts, and it works by voiding language rather than by requiring any. “Notwithstanding any general or special law to the contrary, any provision, clause, covenant or agreement contained in a motor carrier transportation contract that purports to indemnify, defend or hold harmless, or has the effect of indemnifying, defending or holding harmless, an indemnitee from or against any liability for loss or damage resulting from such indemnitee’s negligence or intentional acts or omissions shall be void and unenforceable.”
The definition is where its reach is decided, and it is broader than a transportation clause would suggest. A “motor carrier transportation contract” means a contract, agreement or understanding entered into, renewed, modified or extended on or after July 1, 2012, concerning the transportation of property for compensation or hire; or “the entry on public or private property for the purpose of loading, unloading or transporting property for compensation or hire”; or a service incidental to either. That middle clause is the one that matters here. It reaches the act of driving onto a quarry, a jobsite or a transfer station — which is what a dump truck does several times a day.
There is one express carve-out, and it is narrow: the section does not apply to the Uniform Intermodal Interchange and Facilities Access Agreement administered by the Intermodal Association of North America, or to other agreements providing for the interchange, use or possession of intermodal chassis or containers or other intermodal equipment.
The underwriting significance is that a Massachusetts hauler cannot be contracted into carrying a general contractor’s or a pit owner’s own negligence, and neither can its insurer be brought there through the contract. Broad-form indemnity in a Massachusetts hauling agreement does not do what its drafter intended, and a certificate issued in reliance on it is answering a question the statute has already closed. Where a contract is being reviewed, the live question becomes what the general liability and auto wordings actually respond to on their own terms, rather than what the hold-harmless paragraph says.
Massachusetts also puts an insurance condition on the operating authority itself. 220 CMR 260.01(1) provides that no certificate shall issue to operate as a common carrier “unless the Department is satisfied that the applicant is adequately insured for the loss of or damage to property transported by the applicant,” and 260.01(3) requires that where insurance is required, the policy “shall contain a provision to the effect that said policy shall not expire nor be cancelled except upon 20 days prior notice in writing by the insurance company to the Department.” That notice clause has to be in the policy, which makes it a placement instruction rather than a filing formality.
- Indemnity for the indemnitee’s own negligence or intentional acts is void in a motor carrier transportation contract (c.85 s.37).
- Covers contracts entered, renewed, modified or extended on or after July 1, 2012.
- Reaches entry onto public or private property to load or unload for compensation.
- Carve-out for the Uniform Intermodal Interchange and Facilities Access Agreement and intermodal equipment interchange.
- Common carrier certificates require an adequacy-of-insurance finding and a 20-day cancellation notice clause (220 CMR 260.01).