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Liability wording in grant agreements Laurie Chamness 23 Sep 2004 08:52 EST

Does your standard subgrant agreement include a "Limits of Liability"
paragraph that addresses the liability of each party or does it address
the liability of only the subgrantee?

Our standard subgrant agreement includes a "Limits of Liability"
paragraph that addresses the liability of only the subgrantee:
 "Subgrantee is and will be acting as an independent agent in the
performance of this work, and it shall be solely responsible where found
liable to the extent covered by the subgrantee's insurance for the
payment of any and all claims for loss, personal injury, death, property
damage, or otherwise arising out of any act or omission of its employees
or agents in connection with the performance of this work."

However,  I have seen liability paragraphs that address the liability of
both parties:
 "Each party will be liable for its actions resulting from errors of
omission or commission that may result directly or indirectly from
wrongful or negligent acts by its personnel."

Is there a reason or are there circumstances under which we should use
the "each party" version instead of the "subgrantee" version?

If we are the subgrantee, should we negotiate for one type wording over
the other, or doesn't it matter? Also, if you receive an agreement that
does not include any liability paragraph, do you accept it or do you
request that a liability paragraph be included?


Laurie Chamness
Assistant Director
Office of Research and Sponsored Programs
Medical University of South Carolina
PO Box 250854
Charleston, SC  29425

Ph (843) 792-3832
Fax (843) 792-6447

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