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In Louisiana and Texas, are there any laws that prevent someone from limiting their indemnification to a monetary amount
In Louisiana and Texas, are there any laws that prevent someone from limiting their indemnification to a monetary amount in a construction contract?
1 reply
Feb 13, 2020
Louisiana law generally favors parties to a contract having the freedom to contract however they like so long as it is not against public policy. Indemnification provisions are generally upheld and found valid, even where a monetary cap on a party's liability has been established.
With that said, these are general rules. Specific facts and circumstances can "trigger" a specific code article or statute which invalidates an indemnification provision. Depending upon the specific circumstances surrounding the specific project/contract (i.e., insurance provisions, gross negligence of a party, fraud of a party, etc.), the monetary cap on indemnification may be found invalid.
To determine the validity of the same, I would recommend contacting an attorney so they can analyze the specific facts and circumstances surrounding the construction contract to provide you with a better answer. This answer is specific to Louisiana law, and Texas law may handle monetary caps on indemnification differently.