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Re: Liability wording in grant agreements Herbert B. Chermside 23 Sep 2004 20:30 EST

Wise, and always safe, position.  Be glad your counsel is interested in the
best deal for all, rather than being one-way in protecting you and sticking
it to the other party!

Chuck

At 03:37 PM 9/23/2004, you wrote:
>Our legal counsel won't allow us to accept liability language unless it
>extends both ways.  As a result, when we do subgrants, we use the language
>we would find acceptable -- i.e., extend it both ways.  We don't have any
>problem accepting agreements without a liability cause.
>
>Claire
>
>Claire L. Carlson
>Associate Vice President for Research
>The University of Montana
>Research and Sponsored Programs
>University Hall 202
>Missoula, Montana  59812-4104
>Phone (406) 243-5796
>Fax (406) 243-5739
>NOTE NEW E-MAIL ADDRESS:  xxxxxx@umontana.edu
>
>
>-----Original Message-----
>From: Laurie Chamness [mailto:xxxxxx@MUSC.EDU]
>Sent: Thursday, September 23, 2004 7:53 AM
>To: xxxxxx@HRINET.ORG
>Subject: [RESADM-L] Liability wording in grant agreements
>
>
>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
>
>
>--
>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
>E-Mail:  xxxxxx@musc.edu
>
>
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Chuck Chermside
804-320-5502
xxxxxx@verizon.net

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