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Tuesday, June 14, 2022

New Law Protects Park Districts in Leases with Utility Companies

Last week, P.A. 102-1084, the Park District and Public Utility Liability Act, was enacted, providing good news for park districts, forest preserve districts, conservation districts, or other local entities with a park and recreation department or facilities (Parks Entity) who have leases with public utility companies. The new law provides that any provision in a lease agreement between a public utility and a Parks Entity that requires the Parks Entity to indemnify or hold harmless the public utility company against liability for injury or property damage caused by or resulting from the negligence (in whole or in part) of the utility company is against public policy, void, and unenforceable. The law makes it clear that the new law does not prevent or prohibit an agreement from including provisions that require the public utility company to indemnify or hold harmless the Parks Entity.


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