DP3

DecisionPoint
http://proethica.org/ontology/cases#DecisionPoint

DP3

Is Engineer A obligated to proactively notify existing clients that the broad indemnification clause in their current agreements is no longer ethically justified, and to offer amendment or removal of the clause, or does the obligation apply only prospectively to new agreements?

Engineer A has existing, ongoing contracts with clients that contain the broad indemnification clause. Following the insurance market recovery, Engineer A must decide whether the ethical obligation to remove or modify the clause applies only to future agreements or also requires proactive notification to existing clients that the clause in their current contracts is no longer ethically justified — and potentially renegotiation or amendment of those agreements.

Affirmatively contact all existing clients whose current agreements contain the broad indemnification clause, disclose that the original justification for the clause — insurance unavailability — no longer applies, and offer to amend or remove the clause from ongoing agreements, treating the faithful agent duty as extending to transparency about contractual terms that no longer serve client interests.

Remove or modify the indemnification clause from all future pollution-related service agreements while allowing existing contracts to run to their natural conclusion without amendment or client notification, treating the changed-circumstances obligation as forward-looking only and relying on the binding nature of existing contractual terms as justification for non-disclosure.

Refrain from mid-contract unilateral notification but ensure that at the next renewal, extension, or new engagement with each existing client, the changed market conditions are disclosed, the indemnification clause is removed or substantially modified, and the client is informed of the basis for the revision — balancing the faithful agent duty with practical constraints on mid-contract renegotiation.

Licensed Professional Engineer with Active Client Relationships Governed by Existing Indemnification Agreements