I
107TH CONGRESS
1ST SESSION
H. R. 3549
To provide indemnification and liability protection to, and facilitate the pro-
curement of insurance for, contractors responding to the World Trade
Center attacks.
IN THE HOUSE OF REPRESENTATIVES
DECEMBER 19, 2001
Mr. SWEENEY introduced the following bill; which was referred to the
Committee on the Judiciary
A BILL
To provide indemnification and liability protection to, and
facilitate the procurement of insurance for, contractors
responding to the World Trade Center attacks.
Be it enacted by the Senate and House of Representa-
tives of the United States of America in Congress assembled,
SECTION 1. SHORT TITLE.
This Act may be cited as the ‘‘World Trade Center
Worker and Contractor Protection Act’’.
SEC. 2. INDEMNIFICATION, LIABILITY LIMITATION, AND FA-
CILITATION OF INSURANCE PROCUREMENT
FOR CONTRACTORS FOR THE RESPONSE TO
THE WORLD TRADE CENTER ATTACKS.
(a) IN GENERAL.—Regardless of any other provisions
of law or any contract, the United States Government
shall, subject to the limitations contained in this section,
indemnify Contractors as defined herein against claims as
defined in this section.
(b) COORDINATION WITH INSURANCE.—Indemnifica-
tion under this section shall apply only to the extent that
a claim is not otherwise covered and compensable by insur-
ance procured for the risks involved in the response to the
World Trade Center attacks. However, all or part of the
indemnification under this section may, pursuant to the
terms of insurance procured after the effective date of this
Act, be payable before such insurance is applicable.
(c) LIMITATION IN CASE OF WILLFUL MISCONDUCT
OR LACK OF GOOD FAITH.—When a claim arises from
willful misconduct or lack of good faith, intended to cause
injury to persons or damage to property, on the part of
any of the Contractors’ principal officials, the Contractor
shall not be indemnified.
(d) CONTROL OF CLAIMS MANAGEMENT.—The Con-
tractor shall, to the extent that such claim is reasonably
expected to involve indemnification under this section—
(1) promptly notify the Federal Emergency
Management Agency of any claim against the Con-
tractor that may reasonably be expected to involve
indemnification under this section;
(2) immediately furnish to the United States
Government copies of all pertinent papers Con-
tractor receives;
(3) furnish evidence or proof of any claim cov-
ered by this section in the manner and form the
United States Government requires; and
(4) comply with the United States Govern-
ment’s directions and execute any authorizations re-
quired in connection with settlement or defense of
claims or actions.
(e) PROCEDURE.—The United States Government
may direct, control, or assist in settling or defending any
claim to the extent that such claim involves indemnifica-
tion under this section.
(f) PAYMENT AUTHORITY.—This section constitutes
budget authority in advance of appropriations Acts and
represents the obligation of the United States Government
to provide for the payment of amounts for indemnification
under this section.
(g) LIMITATION ON LIABILITY AND INDEMNITY.—
Notwithstanding any other provision of law or contract,
the total aggregate liability of Contractors for claims shall
not exceed $350,000,000. Insurance coverage shall not in-
crease this limit of liability and shall reduce the indemnity
commitment provided by this section. Insurance coverage
procured for Contractors after the effective date of this
Act may, by its terms, be payable for claims at liability
coverage levels below the total aggregate liability limit.
This limit of liability shall not preclude a Contractor from
being paid or reimbursed for work performed, services pro-
vided, or materials and equipment utilized or consumed.
(h) LITIGATION
MANAGEMENT.—Any claims for
damages against a Contractor that may result in Federal
indemnification as provided in this section shall be
brought under section 408(b) of the Air Transportation
Safety and System Stabilization Act (49 U.S.C. 40101
note), as amended by section 201(b)(2) of the Aviation
and Transportation Security Act (Public Law 107–71),
and shall be subject to the following limits:
(1) No punitive damages may be awarded ex-
cept in case of willful misconduct, nor shall any
party be liable for interest prior to the judgment. No
punitive damages may be awarded against the
United States Government.
(2) Each Contractor against whom a claim is
brought shall be liable only for the amount of dam-
ages allocated to such Contractor in direct propor-
tion to the percentage of responsibility of the Con-
tractor for causing the harm to the plaintiff.
(i) EXCLUSION.—Nothing in this section shall in any
way limit the liability of any person who—
(1) attempts to commit, knowingly participates
in, aids and abets, or commits any act of terrorism,
or any criminal act related to or resulting from such
act of terrorism; or
(2) participates in a conspiracy to commit any
such act of terrorism or any such criminal act.
(j) RIGHT OF SUBROGATION.—The United States
shall have the right of subrogation with respect to any
claim paid by the United States that results in federal in-
demnification as provided in this section. Such right of
subrogation shall not be applied against a Contractor.
(k) DEFINITIONS.—In this section:
(1) The term ‘‘response to the World Trade
Center attacks’’ means all acts or failures to act by
Contractors or volunteers in connection with their
work at the World Trade Center site on the rescue
and evacuation, recovery of bodies, clean up, envi-
ronmental remediation, removal of debris, transpor-
tation of debris, control of pollutants, securing of
public and private property, and protection of the
public health, safety and welfare; provided that such
term shall not include efforts to build or rebuild new
buildings or other activities on the site of the World
Trade Center attacks occurring subsequent to the
foregoing acts or failures to act.
(2) The term ‘‘Contractor’’ means any person
or entity involved in providing work, labor, equip-
ment, materials, or services in connection with the
response to the World Trade Center attacks,
including—
(A) contractors, subcontractors at any tier,
construction managers, engineers, design pro-
fessionals, and their parents, affiliates, officers,
directors, partners, and employees; and
(B) the persons or entities, including
States or political subdivisions thereof, con-
tracting for such work, labor, equipment, mate-
rials or services.
(3) The term ‘‘Contractor’s principal officials’’
means directors, officers, managers, superintendents,
or other representatives supervising or directing—
(A) all or substantially all of the Contrac-
tor’s business;
(B) all or substantially all of the Contrac-
tor’s operations at any one plant or separate lo-
cation in which work in response to the World
Trade Center attack is being performed; or
(C) a separate and complete major indus-
trial operation in which work in response to the
World Trade Center attack is being performed.
(4) The term ‘‘claims’’ or ‘‘claim’’ shall mean
claims, actions, losses, settlements or damages (in-
cluding reasonable expenses of litigation and defense
thereof) arising out of or resulting from the response
to the World Trade Center attacks, whether arising
prior to or subsequent to the enactment of this legis-
lation, for death, personal injury, or loss of, damage
to, or loss of use of property.
(l) SEVERABILITY.—If any provision of this section,
or the application hereof to any person or circumstances,
is held invalid, the remainder of this section, and the ap-
plication of such provision to other persons or cir-
cumstances, shall not be affected thereby.
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