SC Wisconsin News

State Representative Alex Dallman (R-Green Lake) has recently introduced Assembly Bill 514 (AB 514), a piece of legislation aimed at safeguarding private businesses from unreasonable government overreach. The bill specifically focuses on protecting design professionals, such as engineers, architects, land surveyors, and interior designers, who often find themselves tied to contracts with public entities that include onerous clauses.

One particular clause that AB 514 seeks to address is the "Duty to Defend" clause. Currently, design professionals are required to indemnify, hold harmless, and defend their public sector clients against any claims or lawsuits. This means that if a claim is made against the public sector governing body, the design professional must bear the burden of defense costs, including attorney's fees, even if they are not at fault or if the claim is beyond their control.

Representative Dallman emphasizes the unfairness of this requirement, stating, "Right now, duty to defend requirements are putting our local firms across the state at a high risk of bankruptcy because there is no way to insure against these claims." AB 514 aims to rectify this situation by ensuring that contracts between design professionals and public entities only include reasonable and insurable clauses.

Under the proposed legislation, design professionals would still be responsible for indemnifying their clients for their own failures and mistakes. However, they would no longer be held liable for the mistakes of others. The bill establishes that design professionals will only be required to indemnify a public entity if they have been found liable for their own negligence.

Representative Dallman believes that AB 514 will create a more equitable and honest relationship between the public and private sectors. He states, "This commonsense bill will protect our private sector design professionals from being unfairly burdened by our government. This bill will create more fair contracts between the public and private sectors and will encourage a process that is more principled and honest."

The introduction of AB 514 comes as a significant step towards ensuring that design professionals are not unduly burdened by contractual obligations that are beyond their control. By addressing the issue of one-sided contract clauses, the legislation aims to protect private sector design professionals from the risk of bankruptcy and promote fair and balanced contracts between the public and private sectors.

Representative Alex Dallman, who was re-elected in November 2022 for Wisconsin's 41st Assembly District, has been a strong advocate for protecting the rights and interests of his constituents. He currently serves as a member of the influential Joint Committee on Finance. For any inquiries or further information, Representative Dallman can be contacted at (608) 266-8077 or via email at Rep.Dallman@legis.wisconsin.gov.

To learn more, click on this link: https://legis.wisconsin.gov/assembly/41/dallman/news-updates/press-releases/rep-dallman-authors-duty-to-defend-legislation/