Pennsylvania House of Representatives Introduces Anti-Compensation Bill – Corporate / Commercial Law



United States: Pennsylvania House of Representatives Introduces Anti-Compensation Bill

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The Pennsylvania House of Representatives introduced the House Bill 1886, an act to amend Act 164 of 1970, which relates to indemnification agreements in certain contracts. Like Law 164, the bill itself appears to cover agreements between “architects, engineers or surveyors and owners, contractors, subcontractors or suppliers”.

Beyond Limited Law 164, Pennsylvania does not have an anti-compensation law regarding contracts for the industries identified above. While there is case law governing the language of compensation, Pennsylvania does not have a clear legal prohibition on broad and intermediate forms of compensation. It appears that this bill would allow only a limited form of compensation, exclusively for losses caused by the negligence of the compensating party. This legislation is similar to anti-compensation statutes in neighboring states like Delaware, New York, and Ohio.

Recent anti-compensation laws have also been passed specifically for snow and ice management contracts. These bills have been passed in Illinois, Colorado and Connecticut.

The content of this article is intended to provide a general guide on the subject. Specialist advice should be sought regarding your particular situation.

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