Indemnity Agreements in Construction Cases

An Indemnity Agreement is a contract provision wherein one party to the contract agrees to pay costs incurred by the other party to the contract as a result of the other party being held liable to a third party or having to defend against a claim filed by a third party.  Mississippi Code § 31-5-41 (1972) provides:

“With respect to all public or private contracts or agreements, for the construction, alteration, repair or maintenance of buildings, [or] structures…every covenant, promise and/or agreement contained therein to indemnify or hold harmless another person from that person’s own negligence is void as against public policy and wholly unenforceable.”

In the the case of Illinois Cent. Gulf R. Co. v. International Paper Co. the Mississippi Supreme Court held that this statute deals expressly with “work dealing with construction” and does not extend beyond the construction context. Id. 824 F.2d 403 (5th Cir. 1987). However, a “hold harmless”  provision will be enforced as long as a party is not seeking to recover for the party’s own negligence. American Cyanamid Co. v. Campbell Const. Co., 864 F. Supp. 580 (S.D. Miss. 1994).

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