I met with Ca. Assemblyman Chris Norby's staff at his district office last Friday, June 11, 2010. His staff indicated that SB 972 looked like it would be on the Governor's desk very soon. They didn't see any reason why it would be stalled any further.
****UPDATE****
This showed up in my email this morning. After reading the background on this, I see the need to get this passed as quickly as possible. Read it and pass it along where you can.
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ACEC CA Sponsored Legislation Related to the Crawford Supreme Court "Duty To Defend" Decision
ACEC sponsored SB 972 responds to the Supreme Court's ruling in Crawford and an Appeals Court's ruling in UDC. These terrible rulings can force design professionals to pay an indemnitee's attorney fees even when a firm was neither negligent nor in breach of contract. Moreover, in the UDC case the court ruled that the engineering firm had a duty to defend the indemnitee, even though the plaintiff did not even allege that the engineering firm was negligent.
It is literally impossible for a design professional firms to obtain insurance to cover other's attorney fees in these circumstances. These cases force companies to literally "bet the firm" every time a contract signed. That is terrible for business and job growth and frankly is just not right.
SB 972 is important and urgently needed. Already in response to these court rulings, design professional firms are increasingly confronted with onerous and uninsurable indemnity demands in contracts and tenders for the defense of lawsuits not involving allegations of professional negligence. Relief, as envisioned by SB 972, is critical.
PLEASE TAKE ACTION TODAY!! SEND THIS EMAIL TO OTHERS SO THEY CAN TAKE ACTION TOO!!
Thanks,
Mark Smith
ACEC CA Legislative Advocate
916-335-5072
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