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Indemnity Clauses That Conflict with Oregon Indemnity Statute Can Remain Partially Valid and Enforceable

Date: November 30, 2016  /  Author: Masaki James Yamada  /  Categories: Contracting, Construction News and Notes, Memorable Quotes, Rants and Raves, Indemnity, Damages, Construction Defect, Claims  /  Keywords: Indemnity Clauses That Conflict with Oregon Indemnity Statute Can Remain Partially Valid and Enforceable 1  /  Comments (0)

When the indemnity provision of a contract conflicts with ORS 30.140, it is voided to the extent that it conflicts with the statute, but no more.  Such provisions can remain partially valid and enforceable.[i]  In Montara Owner Assn., the owner brought claims against the contractor for construction defects and damage relating to the construction of 35 townhouses.  Contractor then brought third-party claims against more than 20 subcontractors for breach of contract and indemnity.  Before trial, contractor settled with all but one subcontractor.  The subcontract contained an indemnity provision requiring subcontractor to indemnify contractor for losses arising out of subcontractor’s work, including losses caused in part by contractor’s own negligence.