I haven't come up against this one per se.  However, the very act of
limiting their liability is, itself, indemnification.  This appears to be a
"mutual indemnity"  clause.  I would negotiate on the basis that my
institution (a state supported institution of higher education) is
constitutionally (sovereign immunity) prohibited from indemnification of
another party.  As I recall (but its been a while so please verify this if
you want to take this position), the State of West Virginia also claims
sovereign immunity as an entity of the State.

Rosemary

At 09:38 AM 3/5/2004, you wrote:
>We have recently received two clinical trials agreements where the
>clause that describes that the company will indemnify us has language
>that limits their indemnification to their self insurance limit of $2m.
>We have asked that this be removed as it potentially makes us liable for
>any claims in excess of the $2m.
>
>Have others seen this?  How did you handle it?
>
>Thanks!!
>
>Alan B. Martin
>Director, Office of Sponsored Programs
>886 Chestnut Ridge Road, PO Box 6845
>Morgantown, WV  26506
>Phone (304)293-7398
>Fax (304)293-7435
>
>
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Rosemary H. Ruff
Associate Director, Review and Compliance
Biological Research Facility
139 Mell Street
Auburn University, AL  36849
(334) 844-5965 Voice
(334) 844-5938  Fax

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