This book examines contractual limitation, principles and practice through the use of knock-for-knock indemnity clauses. In using such clauses, the parties agree that for certain forms of potential liability – typically property damage, personal injury to employees, and sometimes other heads of claim such as consequential loss – any loss arising will be absorbed by the party who suffers it: "you look after your losses, I’ll look after mine." It is an apparently simple, pragmatic and neat solution to the question of who bears liability: a risk allocation model so straightforward that it was described by one experienced English judge, Honorable Mr. Justice Morison, as "crude".
A specialist contributor team of international experts, examine the origin, application and effect of these clauses in important jurisdictions, their impact in different industries such as oil & gas, shipping, construction and insurance, through the lenses of both economic and legal analyses.
The book is of use for lawyers, economists and businesspeople who draft, negotiates or manage contracts in all industries where liability is dealt with in this way. It is also of interest to students, academics, and policy makers.
Editors Preface, List of Contributors, PART I – SELECTED TOPICS, 1. The Development of Knock-for-Knock Clauses in the last 15 years, 2. An Introduction to Risk Allocation in Oil and Gas Contracts from an English Law Perspective, 3. Contracting around Tort Defaults: the Knock-for-Knock Prinicple and Accident Costs, 4. On Knock-for-Knock Clauses and Their Optimal Regulation, 5. Knock-for-Knock Indemnity Provisions and Liability Insurance: Potentially Strange but Always Complicated Bedfellow, 6. Effect of Choice-of-Law on Knock-for-Knock Clauses, PART 2 – KNOCK-FOR-KNOCK IN SPECIFIC JURISDICTIONS, 7. Indemnity clauses in fabrication and construction contracts in Norway, 7a. Limiting and Channeling Liability under Offshore Construction Contracts in Norway, 7b. The Obligation to Insure the Contract Object as Part of a Knock-for-Knock Agreement in Norway, 8. Liability and Insurance Clauses in Contracts for Vessel Services in the Norwegian Offshore Sector - the Knock for Knock Principle, 9. Contractual Risk Allocation in Upstream Oil and Gas vs. Statutory Liability Regulation: the Norwegian Situation, 10. Applying Knock-for-Knock in Germany, 11. Knock-for-Knock under Brazilian Law, 12. The Implications of Litigation Post Deepwater Horizon on Knock-for-Knock Clauses in U.S. Law, 13. Hold Harmless Clauses in France and Francophone Civil Law Systems, 14. Lessons from the Application of Knock-for-Knock Clauses under Malaysian Law, 15. Index