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Indemnification dispute could be resolved with right liability insurance


A contract dispute between Arkansas Tech University and Entergy Arkansas is delaying the deployment of a solar array at the old Dillard’s Department Store headquarters, which is the new home to the State Library, Arkansas Energy Office and other state agencies.

The old Dillard's headquarters was refurbished in 2010, received Leadership in Energy and Environmental Design certification, and was later bought by the state.

The contract dispute between ATU and Entergy began in 2009, when the university reluctantly agreed to be liable for Entergy employees who were renovating a dorm on campus. Soon after, ATU filed a complaint with the state Public Service Commission, arguing that the state constitution prohibits the state, including higher education institutions, from entering into an indemnification agreement with a corporation.

This dispute could be resolved by ATU acquiring liability insurance that would serve a similar purpose as the indemnification clause, according to Arkansas News.

Another recent contract dispute in Arkansas ended up with Dr. Barry Uretsky of the University of Arkansas for Medical Sciences at Little Rock receiving about $1.4 million in damages in what was formally a breach-of-contract dispute, reported

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