The Supreme Court of Florida has ruled that the state DOT cannot escape its contractual indemnity obligations under a contract entered into by the DOT with private rail line CSX Transportation Inc. A fatal accident on a CSX railroad invoked an indemnity clause in a contract entered into by each company’s predecessor.  As compensation for land use, the contract required the DOT to indemnify CSX in the case of liability.  Such an event occurred, triggering the clause. The DOT attempted to escape payment, citing Florida State statutes calling for sovereign immunity, and claiming that the State Road Department did not maintain the authority to enter into such an indemnity agreement, thus rendering the clause unenforceable.   Regarding the authority issue, the DOT argued that such statutes must grant the agencies express authority to include provisions such as indemnity agreements, and statutes at the relevant time did not. The Florida court disagreed, stating “when the State is statutorily authorized to enter into a contract, that authority includes the obligations necessary to fulfill the terms of that contract.” Effectively, where the authority exists to enter into a contract, clauses such as indemnity clauses are also authorized. As such, the DOT cannot escape fulfilling its indemnity obligations as the clause was deemed enforceable by the Florida Supreme Court. ​Click here for decision.​