Herbst et al. v. The Guilford Yatch Club Association, Inc. et al., 2009 Conn. Super. LEXIS 765
Posted: August 29, 2011 Filed under: Assumption of the Risk, Connecticut, Cycling, Legal Case | Tags: bicycle, biking, contributory negligence, Cycling, Duty to Wear a Helmet, helmet, malicious, Reckless, Wanton, Yacht Club Leave a commentHerbst et al. v. The Guilford Yatch Club Association, Inc. et al., 2009 Conn. Super. LEXIS 765
Sharon Herbst et al. v. The Guilford Yatch Club Association, Inc. et al.
NNHCV085022625S
SUPERIOR COURT OF CONNECTICUT, JUDICIAL DISTRICT OF NEW HAVEN AT NEW HAVEN
2009 Conn. Super. LEXIS 765
March 30, 2009, Decided
March 31, 2009, Filed
NOTICE: THIS DECISION IS UNREPORTED AND MAY BE SUBJECT TO FURTHER APPELLATE REVIEW. COUNSEL IS CAUTIONED TO MAKE AN INDEPENDENT DETERMINATION OF THE STATUS OF THIS CASE.
JUDGES: [*1] John F. Cronan, J.
OPINION BY: John F. Cronan
OPINION
FACTS
This personal injury action was commenced on August 14, 2008, by plaintiff Sharon Herbst, via service of writ, summons and complaint on the agents for service of defendants Guilford Yacht Club Association, Inc. and Unit Owners Association at Guilford Yacht Club, Inc. The plaintiff alleges that she suffered serious injuries when, as a business invitee of the defendants, she was thrown off of a malfunctioning bicycle owned and maintained by the defendants.
The plaintiff’s ten-count complaint alleges five counts against each defendant, with counts six through ten re-alleging the facts and claims in counts one through five. Counts one and six allege negligence for failure to inspect, maintain, house, and test the defective bicycle, failure to warn that the bike was unsafe, and failure to provide the plaintiff with a helmet or access to helmets. Counts two and seven allege loss of consortium on the part of Richard Herbst, husband of plaintiff Sharon Herbst. 1 Counts three and eight allege recklessness for the same acts or omissions described in counts one and six. Counts four and nine allege Connecticut Unfair Trade Practices Act (CUTPA) 2 violations [*2] on the ground that the defendants advertised free use of bicycles to increase business from transient club members while failing to take steps to ensure that the bicycles were safe for use, thus violating Connecticut public policy by placing profits ahead of safety and causing substantial injury to consumers and/or providing the defendant with an unfair advantage over competing marinas. Counts five and ten allege spoliation of evidence on the ground that the defendants repaired the bicycle in question while aware of the impending action.
1 Although Richard Herbst is a plaintiff in this action, the claims central to this motion solely involve Sharon Herbst and therefore the court will refer to her as “the plaintiff” for purposes of this decision.
2 Although the plaintiff fails to allege the violation of a particular statute in her complaint, both parties make arguments referring to the Connecticut Unfair Trade Practices Act, General Statutes §42-110a et seq., therefore the court will address their arguments under that statute.
On November 28, 2008, the defendants filed a motion to strike (# 117) paragraphs 12(e) and 12(f) of counts one and six, and counts three, four, eight and nine entirely. [*3] The defendants filed a memorandum of law in support (# 118). The plaintiff filed an objection to the motion to strike (# 120) and corresponding memorandum of law in opposition (# 121) on December 11, 2008. The parties presented oral arguments to the court on January 12, 2009.
DISCUSSION
[HN1] “The purpose of a motion to strike is to contest . . . the legal sufficiency of the allegations of any complaint . . . to state a claim upon which relief can be granted.” (Internal quotation marks omitted.) Fort Trumbull Conservancy, LLC v. Alves, 262 Conn. 480, 498, 815 A.2d 1188 (2003). “A motion to strike challenges the legal sufficiency of a pleading, and, consequently, requires no factual findings by the trial court.” (Internal quotation marks omitted.) Bernhard-Thomas Building Systems, LLC v. Dunican, 286 Conn. 548, 552, 944 A.2d 329 (2008). “[I]n determining the sufficiency of a complaint challenged by a defendant’s motion to strike, all well-pleaded facts and those facts necessarily implied from the allegations are taken as admitted.” Violano v. Fernandez, 280 Conn. 310, 318, 907 A.2d 1188 (2006).
Counts One and Six
The defendants move to strike paragraphs 12(e) and (f) of counts one and six. These [*4] two paragraphs allege that the defendants negligently caused the plaintiff’s injuries “in that the defendant did not provide the plaintiff with a bicycle helmet when they could and should have done so” and “in that the defendant failed to make bike helmets visible and/or readily assessable [sic] to business invitees.” The defendants argue that “there exists no legal duty on the part of the defendants to provide and/or make available a bicycle helmet to an adult.” (Motion to Strike, p. 5.) The plaintiff responds that the defendant cannot move to strike only certain portions of a count, but rather only a count as a whole, and that, even if the court were to examine the merits of the defendants’ arguments, the plaintiff sufficiently pleaded a claim for common-law negligence on the ground that the defendants failed to maintain safe premises for business invitees by offering bicycles to visiting boaters without providing helmets. (Memorandum in Opposition, pp. 4-5.)
[HN2] “‘Although there is a split of [opinion], most trial courts follow the rule that a single paragraph of a pleading is subject to a motion to strike only when it attempts to set forth all of the essential allegations of a cause [*5] of action or defense . . . [O]nly an entire count of a counterclaim or an entire special defense can be subject to a motion to strike, unless the individual paragraph embodies an entire cause of action or defense . . . Prior to the 1978 Practice Book revision, a motion to strike . . . individual portions or paragraphs of a count did not lie if the count as a whole stated a cause of action . . . Arguably under the present rules, a motion to strike may properly lie with respect to an individual paragraph in a count . . . However, the weight of [opinion] in the Superior Court is that the motion does not lie, except possibly where the subject paragraph attempts to state a cause of action.’ (Citations omitted; internal quotation marks omitted.) Trimachi v. Workers’ Compensation Commission, Superior Court, judicial district of New Haven, Docket No. CV 97 0403037 (June 14, 2000, Devlin, J.) (27 Conn. L. Rptr. 681, 2000 Conn. Super. LEXIS 1548).” Wright v. 860 Main, LLC, Superior Court, judicial district of Hartford, Docket No. CV 06 5007079, (May 21, 2007, Tanzer, J.) (43 Conn. L. Rptr. 458).
The plaintiff alleges the breach of a variety of duties under its general claim of negligence in counts one and six. The plaintiff’s [*6] claims relating to the defendants’ alleged failure to provide bicycle helmets identifies a purported duty that may be properly recognized as a claim entirely distinct from the alleged duties pertaining to the maintenance of the bicycle. As such, this is an instance where it is appropriate to review the legal sufficiency of the identified individual paragraphs via a motion to strike.
The claims in paragraphs 12(e) and (f) of counts one and six are not legally sufficient to state a claim upon which relief can be granted, and therefore the court grants the defendant’s motion to strike those paragraphs. The plaintiffs claim that the defendants had a common-law duty to provide bicycle helmets to adults finds no support in Connecticut law. The only bicycle helmet statute in Connecticut, General Statutes §14-286d, requires protective headgear solely for children under the age of sixteen. 3 The plaintiff is older than sixteen and therefore the requirements of §14-286d are inapplicable.
3 The relevant portions of §14-286d state: [HN3] “(b) No child fifteen years of age or under shall operate a bicycle on the traveled portion of any highway unless such child is wearing protective headgear which conforms [*7] to the minimum specifications established by the American National Standards Institute or the Snell Memorial Foundation’s Standard for Protective Headgear for Use in Bicycling. Failure to comply with this section shall not be a violation or an offense. Failure to wear protective headgear as required by this subsection shall not be considered to be contributory negligence on the part of the parent or the child nor shall such failure be admissible in any civil action . . . (d) A person, firm or corporation engaged in the business of renting bicycles shall provide a bicycle helmet conforming to the minimum specifications established by the American National Standards Institute or the Snell Memorial Foundation’s Standard for Protective Headgear for Use in Bicycling to any person under sixteen years of age who will operate the bicycle if such person does not have a helmet in his possession. A fee may be charged for the helmet rental. Violation of any of the provisions of this subsection shall be an infraction.”
[HN4] “The existence of a duty is a question of law and only if such a duty is found to exist does the trier of fact then determine whether the defendant violated that duty in the particular [*8] situation at hand . . . [T]he test for the existence of a legal duty of care entails (1) a determination of whether an ordinary person in the defendant’s position, knowing what the defendant knew or should have known, would anticipate that harm of the general nature of that suffered was likely to result, and (2) a determination, on the basis of a public policy analysis, of whether the defendant’s responsibility for its negligent conduct should extend to the particular consequences or particular plaintiff in the case . . . The first part of the test invokes the question of foreseeability, and the second part invokes the question of policy . . . [W]e are not required to address the first prong as to foreseeability if we determine, based on the public policy prong, that no duty of care existed.” (Citation omitted; internal quotation marks omitted.) Neuhaus v. Decholnoky, 280 Conn. 190, 217-18, 905 A.2d 1135 (2006).
The plaintiff has not identified any prior Connecticut court that recognizes the duty of a bicycle purveyor to provide a helmet to a would-be cyclist over the age of sixteen. Several superior court decisions have addressed the related question of whether there exists a duty [*9] to wear a bicycle helmet in the context of a special defense of contributory negligence. The court in Dubicki v. Auster, Superior Court, judicial district of New London at Norwich, Docket No. 107712 (March 8, 1996, Hendel, J.) (16 Conn. L. Rptr. 301, 1996 Conn. Super. LEXIS 671), considered the question of “whether an adult bicycle rider can be considered contributorily negligent for his or her failure to wear a bicycle helmet while riding his or her bicycle.” The court noted that the language of §14-286d, “as well as a review of the legislative history . . . reveals that the statute was primarily designed to encourage the use of headgear by children” and that “[t]here is no similar statute for adults.” Id., 302, 1996 Conn. Super. LEXIS 671. The court concluded that “[t]here being no statutory duty imposed on an adult rider to wear [a helmet], there can be no contributory negligence for an adult rider’s failure to do so.” Id.
In an analogous case, the court in Ruth v. Poggie, Superior Court, judicial district of Tolland at Rockville, Docket No. CV 93 52750 (November 22, 1993, Klaczak, J.) [10 Conn. L. Rptr. 412, 1993 Conn. Super. LEXIS 3090], concluded that an injured motorcyclist could not be found contributorily negligent for failing to wear a helmet because “there is [*10] no duty, statutory or otherwise, for motorcycle operators in Connecticut to take the safety precaution to wear a protective helmet. Thus . . . it cannot be said that the failure to wear a motorcycle helmet amounts to negligence on the party of the rider.”
As this court agrees with those decisions holding that an adult cyclist does not have a duty to wear a helmet, and further observes that the legislature clearly decided to limit any such duty to children under the age of sixteen, this court now holds that a bicycle purveyor is under no duty to provide an adult bicyclist with a helmet. The practical reason for drawing this line is self-evident: an adult is fully capable of rationalizing the risks of riding a bicycle with or without a helmet, and may choose to act accordingly. The legislature’s policy of allowing each individual adult to choose whether to use a helmet is exemplified by the age cap on the protective headgear requirement for bicyclists in §14-286d as well as the legislature’s repeal of the so-called “motorcycle helmet law” in 1976. See General Statutes (Rev. to 1975) §14-289e; Ruth v. Poggie, supra, Superior Court, Docket No. CV 93 52750. As illustrated in this case, if [*11] the plaintiff was concerned about her lack of a helmet, she could have chosen not to ride the bicycle. The defendants did not owe the plaintiff a duty to provide a bicycle helmet and the court therefore grants the defendants’ motion to strike paragraphs 12(e) and (f) of counts one and six.
Counts Three and Eight
The defendants move to strike counts three and eight on the ground that the plaintiff has “failed to plead facts alleging malicious, wanton and/or reckless conduct on the part of the defendants” and “merely reiterate the claims made in the negligence counts.” (Motion to Strike, p. 9.) The plaintiff responds that “the specific facts alleged in the case at bar are sufficient to satisfy the elements necessary to support a claim for reckless conduct so as to survive a motion to strike.” (Memorandum in Opposition, p. 6.) The court agrees with the plaintiff and denies the defendants’ motion to strike counts three and eight.
[HN5] “Recklessness is a state of consciousness with reference to the consequences of one’s acts . . . It is more than negligence, more than gross negligence . . . The state of mind amounting to recklessness may be inferred from conduct. But, in order to infer it, there [*12] must be something more than a failure to exercise a reasonable degree of watchfulness to avoid danger to others or to take reasonable precautions to avoid injury to them . . . [S]uch aggravated negligence must be more than any mere mistake resulting from inexperience, excitement, or confusion, and more than mere thoughtlessness or inadvertence, or simply inattention . . . Although there is a difference between negligence and a reckless disregard of the rights or safety of others, a complaint is not deficient so long as it utilizes language explicit enough to inform the court and opposing counsel that both negligence and reckless misconduct are being asserted.” (Citations omitted; internal quotation marks omitted.) Craig v. Driscoll, 262 Conn. 312, 342-43, 813 A.2d 1003 (2003).
The plaintiff utilizes language explicit enough to inform the court and the defendants that both negligence and reckless misconduct are being asserted. Furthermore, the plaintiff has alleged facts that, viewed in the light most favorable to sustaining the claim and treated as admitted for purposes of deciding this motion, support a claim for recklessness. The plaintiff’s detailed allegations regarding the purchase, [*13] maintenance and inspection of the bicycle are sufficient to sustain a claim of recklessness. The defendants’ motion to strike counts three and eight is therefore denied.
Counts Four and Nine
The defendants move to strike comas four and nine on the ground that the plaintiff’s CUTPA claims are legally insufficient because “(1) the alleged wrongful act was not conducted in the course of the defendant’s primary line of business; and (2) the plaintiffs cannot establish that Sharon Herbst suffered an ‘ascertainable loss’ as required by General Statutes §42-110g(a).” (Motion to Strike, pp. 14-15.) The plaintiff argues that she has established a prima facie CUTPA claim because she alleges in the complaint that the defendants operate a full service recreational facility that includes the advertising and provision of bicycles to increase business at the expense of competitors and that the solicitation of cycling business while providing unsafe bicycles offends public policy. (Memorandum in Opposition, pp. 10-11.) The plaintiff also argues that her personal injuries are an ascertainable loss recoverable in a claim for a CUTPA violation. Id. The defendants’ arguments rely on questions of fact not [*14] properly addressed at this juncture and therefore the court denies the motion to strike counts four and nine.
[HN6] “It is well settled that whether a defendant’s acts constitute . . . deceptive or unfair trade practices under CUTPA, is a question of fact for the trier . . . To establish a CUTPA violation, a claimant’s evidence must establish that the conduct at issue falls within one of three criteria. A court must decide whether the conduct (1) offends public policy, (2) is immoral, unethical, oppressive or unscrupulous or (3) causes substantial injury to consumers, competitors or other businessmen . . . Whether the defendant is subject to CUTPA is a question of law, not fact.” McCann Real Equities Series XXII, LLC v. David McDermott Chevrolet, Inc., 93 Conn.App. 486, 520-21, 890 A.2d 140 (2006). “[A] CUTPA violation may not be alleged for activities that are incidental to an entity’s primary trade or commerce.” Id., 523. “[T]he touchstone for a legally sufficient CUTPA claim is the implication that the acts complained of have ‘an entrepreneurial or business aspect.'” Simms v. Candela, 45 Conn. Supp. 267, 273, 711 A.2d 778 (1998) [21 Conn. L. Rptr. 479], quoting Haynes v. Yale-New Haven Hospital, 243 Conn. 17, 38, 699 A.2d 964 (1997).
Without [*15] evidence from either party, and accepting the facts as alleged in the complaint as true for purposes of resolving this motion, the court cannot say definitively that cycling is not a component of the defendants’ primary line of business. The plaintiff alleges that the defendant operated and managed a commercial boating marina but also repeatedly alleges that bicycling was a component of that operation. The court is unwilling to draw adverse factual inferences that the bicycling business was merely incidental to the marina business without additional facts not properly presented in a motion to strike. As such, the court cannot strike counts four and nine on this ground.
Similarly, the plaintiff alleges a variety of losses including those for physical injuries, medical care, lost wages, and the loss of enjoyment of life, and alleges that her damages resulted in part because of the defendants’ alleged CUTPA violations. Both parties acknowledge that there is a split of opinion in the superior court regarding whether damages for personal injuries may be recoverable under CUTPA. See, e.g., Rodriguez v. Westland Properties, Inc., Superior Court, judicial district of Ansonia-Milford at Milford, [*16] Docket No. CV 02 077228 (March 17, 2004, Upson, J.) (36 Conn. L. Rptr. 702, 2004 Conn. Super. LEXIS 615) (“[d]espite CUTPA’s broad language and remedial purpose, the plaintiff’s alleged [slip and fall] injuries do not satisfy the distinction alluded to in Haynes because they are personal, rather than economic”); Simms v. Candela, supra, 45 Conn.Sup. 274 (“[the plaintiff], like most personal injury plaintiffs, alleges that he has suffered economic losses, including medical expenses and lost wages, as a result of his fall. Assuming this allegation to be true, he is a ‘person who suffers [an] ascertainable loss of money’ “). Although the plaintiff’s claims may appear to be only tenuously derived from the defendants’ “entrepreneurial or business aspect”; see Haynes v. Yale-New Haven Hospital, supra, 243 Conn. 32-35; the plaintiff has adequately pleaded conduct and damages that could potentially be construed as ascertainable losses derived from a violation of CUTPA. The “issue as to whether this loss resulted from the CUTPA violation complained of . . . is a factual issue appropriately left to the judge or jury hearing the case.” Simms v. Candela, supra, 45 Conn.Sup. 274. The court therefore denies the defendants’ [*17] motion to strike counts four and nine.
CONCLUSION
For the foregoing reasons, the court grants the defendants’ motion to strike paragraphs 12(e) and 12(f) of counts one and six, and denies the motion to strike counts three, four, eight and nine.
The Court
Cronan, J.
J.T., Jr., a minor v. Monster Mountain, Llc, 2010 U.S. Dist. LEXIS 130407; 78 Fed. R. Serv. 3d (Callaghan) 182
Posted: June 20, 2011 Filed under: Alabama, Legal Case, Minors, Youth, Children, Release (pre-injury contract not to sue) Leave a commentJ.T., Jr., a minor v. Monster Mountain, Llc, 2010 U.S. Dist. LEXIS 130407; 78 Fed. R. Serv. 3d (Callaghan) 182
J.T., Jr., a minor who sues by and through SUSAN THODE, his mother and next of friend, Plaintiff, v. MONSTER MOUNTAIN, LLC, D/B/A MONSTER MOUNTAIN MX PARK; DOUBLE AA ENTERPRISES, LLC; PRECISION CYCLES, LLC, D/B/A TRACK SIDE PERFORMANCE PRO SHOP; WILLIAM ANDERSON, III; and MILAN HARRIS, Defendants.
CIVIL ACTION NO. 2:09cv643-WHA-TFM (WO)
UNITED STATES DISTRICT COURT FOR THE MIDDLE DISTRICT OF ALABAMA, NORTHERN DIVISION
2010 U.S. Dist. LEXIS 130407; 78 Fed. R. Serv. 3d (Callaghan) 182
December 9, 2010, Decided
December 9, 2010, Filed
COUNSEL: [*1] For J.T., Jr., a minor who sues by and through Susan Thode, his mother and next of friend, Plaintiff: Benjamin E. Baker , Jr., LEAD ATTORNEY, Dana Claire Taunton, Beasley Allen Crown Methvin Portis & Miles PC, Montgomery, AL; Michael J. Crow, LEAD ATTORNEY, Beasley Allen Crow Methvin Portis & Miles PC, Montgomery, AL.
For Monster Mountain, LLC, doing business as Monster Mountain MX Park, Double AA Enterprises, LLC, William Anderson, III, Defendants: Richard Brett Garrett, LEAD ATTORNEY, Rushton Stakely Johnston & Garrett PC, Montgomery, AL; Thomas Grant Sexton , Jr., Rushton, Stakely, Johnston & Garrett, P.A., Montgomery, AL.
For Precision Cycles, LLC, doing business as Track Side Performance Pro Shop, Milan Harris, Defendants: Joseph William Warren, LEAD ATTORNEY, Joseph W. Warren, P.C., Montgomery, AL.
JUDGES: W. HAROLD ALBRITTON, SENIOR UNITED STATES DISTRICT JUDGE.
OPINION BY: W. HAROLD ALBRITTON
OPINION
MEMORANDUM OPINION AND ORDER
I.INTRODUCTION
This cause is before the court on a Motion for Summary Judgment filed by Monster Mountain, LLC (“Monster Mountain”); Double AA Enterprises, LLC (“Double AA”); and William Anderson, III (“Anderson,” collectively, the “Monster Mountain Defendants”) (Doc. #30). The Plaintiff, [*2] J.T., Jr. (“J.T.”) filed a Complaint in this case alleging that Monster Mountain, Double AA, Anderson, Precision Cycles, LLC, and Milan Harris (collectively, the “Defendants”) are liable to him on the basis of premises liability, negligence, and wantonness. The Monster Mountain Defendants moved for summary judgment on the negligence cause of action, asserting that a contractual exculpatory clause bars J.T.’s claim. For the reasons to be discussed, the Motion for Summary Judgment is due to be DENIED.
II.SUMMARY JUDGMENT STANDARD
[HN1] Summary judgment is proper “if there is no genuine issue as to any material fact and . . . the moving party is entitled to a judgment as a matter of law.” Celotex Corp. v. Catrett, 477 U.S. 317, 322, 106 S. Ct. 2548, 91 L. Ed. 2d 265 (1986).
The party asking for summary judgment “always bears the initial responsibility of informing the district court of the basis for its motion,” relying on submissions “which it believes demonstrate the absence of a genuine issue of material fact.” Id. at 323. Once the moving party has met its burden, the nonmoving party must “go beyond the pleadings” and show that there is a genuine issue for trial. Id. at 324.
[HN2] Both the party “asserting that a fact cannot be,” and [*3] a party asserting that a fact is genuinely disputed, must support their assertions by “citing to particular parts of materials in the record,” or by “showing that the materials cited do not establish the absence or presence of a genuine dispute, or that an adverse party cannot produce admissible evidence to support the fact.” Fed. R. Civ. P. 56(c)(1)(A), (B). Acceptable materials under Rule 56(c)(1)(A) include “depositions, documents, electronically stored information, affidavits or declarations, stipulations (including those made for purposes of the motion only), admissions, interrogatory answers, or other materials.”
[HN3] To avoid summary judgment, the nonmoving party “must do more than show that there is some metaphysical doubt as to the material facts.” Matsushita Elec. Indus. Co. v. Zenith Radio Corp., 475 U.S. 574, 586, 106 S. Ct. 1348, 89 L. Ed. 2d 538 (1986). On the other hand, the evidence of the nonmovant must be believed and all justifiable inferences must be drawn in its favor. See Anderson v. Liberty Lobby, 477 U.S. 242, 255, 106 S. Ct. 2505, 91 L. Ed. 2d 202 (1986).
After the nonmoving party has responded to the motion for summary judgment, the court shall grant summary judgment if the movant shows that there is no genuine dispute as to any material [*4] fact and the movant is entitled to judgment as a matter of law. Fed. R. Civ. P. 56(a).
III.FACTS
The submissions of the parties establish the following facts, viewed in a light most favorable to the non-movant:
J.T. is a minor from the state of Indiana and a competitive motocross rider. On January 29, 2009, J.T. traveled to Monster Mountain MX Park in Alabama, a motocross park owned by Double AA. He was accompanied by several friends and his coach, James Tyler Thompson (“Thompson”). Prior to departing, J.T.’s parents signed a notarized document authorizing Thompson to “act as our son’s legal guardian in our absence for the purpose of signing all release of liability and registration forms and to give consent for medical treatment.” (Doc. #30-1.)
To ride at Monster Mountain, all riders must pay an entry fee and execute a Release and Waiver of Liability and Indemnity Agreement (the “Release”). The Release reads in pertinent part:
IN CONSIDERATION of being permitted to enter . . . EACH OF THE UNDERSIGNED, for himself, his personal representatives, heirs, and next of kin, acknowledges, agrees and represents that he has, or will immediately upon entering . . . [inspect the premises] . . .
[and] [*5] HEREBY RELEASES, WAIVES, DISCHARGES, AND COVENANTS NOT TO SUE the . . . track operator [or] track owner . . . from all liability to the undersigned, his personal representatives, assigns, heirs, and next of kin for any and all loss or damage . . . whether caused by the negligence of the releasees or otherwise while the undersigned is in or upon the restricted area . . .
[and] HEREBY AGREES TO INDEMNIFY AND SAVE AND HOLD HARMLESS the releasees and each of them from any loss, liability, damage, or cost they may incur due to the presence of the undersigned in or upon the restricted area . . .
[and] HEREBY ASSUMES FULL RESPONSIBILITY FOR AND RISK OF BODILY INJURY, DEATH OR PROPERTY DAMAGE due to the negligence of releasees or otherwise . . . .
THE UNDERSIGNED HAS READ AND VOLUNTARILY SIGNS THE RELEASE AND WAIVER . . . and further agrees that no oral representations, statements or inducements apart from the foregoing written agreement have been made.
(Doc. #30-2.)
During his first three days at Monster Mountain, J.T. rode without incident. On the morning of February 1, 2009, J.T., Thompson, and the other riders who traveled with them, arrived at Monster Mountain for another day of riding.
After [*6] J.T. and Thompson signed the Release, with Thompson signing on J.T.’s behalf, Thompson paid J.T.’s entry fee, and J.T. entered Monster Mountain and began riding around the track. Subsequently, J.T. rode over a blind jump, became airborne, and crashed into a tractor on the track that he did not see until he was airborne. J.T. alleges, among other causes of action, that Defendants’ failure to remove the tractor from the track constituted negligence.
IV.DISCUSSION
The issue before the court is whether J.T.’s negligence claims against the Monster Mountain Defendants are barred by the Release. The Monster Mountain Defendants contend that they are entitled to summary judgment because J.T. signed the Release and Thompson “signed [the Release] on [J.T.’s] behalf,” thus binding J.T. to a contract that exculpates the Monster Mountain Defendants from liability for J.T.’s injuries. (Br. in Supp. of Mot. for Summ. J. at 3.)
J.T. responds that, under Alabama law, a contract made with a minor is voidable. Young v. Weaver, 883 So. 2d 234, 236-37 (Ala. Civ. App. 2003). 1 J.T. argues that because the Release is effectively a contract with a minor, whether signed on his behalf or not, the Release is not [*7] binding on him.
1 One exception to the rule that a contract with an infant is voidable at the election of the infant is that “when an infant executes a contract, the infant is liable only on his implied promise to pay for necessaries.” Ex parte Odem, 537 So. 2d 919, 920 (Ala. 1988).
The Monster Mountain Defendants concede that J.T.’s signature on the contract cannot make it binding, due to the rule that a contract with a minor is voidable. However, they attempt to overcome J.T.’s argument by asserting that Thompson, an adult who was acting on behalf of J.T.’s parents, signed the Release on J.T.’s behalf. Thus, the Monster Mountain Defendants contend that if a child’s parents, acting through an agent, sign an exculpatory contract on their child’s behalf, the contract is binding on the child and not voidable.
As the following discussion indicates, the court agrees with J.T., and therefore, summary judgment is due to be denied.
A. Alabama Law
The parties agree that Alabama law applies in this case. They also agree that Alabama courts have not addressed the specific factual situation presented by this case. However, Alabama courts have dealt with three relevant legal principles.
First, [HN4] Alabama, [*8] like virtually all jurisdictions, applies the longstanding common law rule that, except for a contract for necessaries, “a minor is not liable on any contract he makes and that he may disaffirm the same.” See, e.g., Young, 883 So. 2d at 236 (internal punctuation omitted). This rule exists to protect minors from being taken advantage of by others due to minors’ “improvidence and incapacity.” Bell v. Burkhalter, 176 Ala. 62, 57 So. 460 (Ala. 1912) (citing Am. Freehold Land Mortg. Co. v. Dykes, 18 So. 292, 294, 111 Ala. 178 (Ala. 1895)). This rule is firmly entrenched in the common law and has existed at least since the year 1292. 5 Richard A. Lord, Williston on Contracts § 9:2 (4th ed. 1993).
Second, while Alabama courts have noted an exception to this rule, that exception is narrow. In Peck v. Dill, the Alabama Supreme Court held that a parent could sign a binding contract on behalf of a child, pursuant to a health care plan, that required the child to subrogate the health insurer for injuries caused by third parties. 581 So. 2d 800, 802 (Ala. 1991), overruled on other grounds by Ex Parte State Farm Fire & Cas. Co., 764 So. 2d 543, 544, 546 (Ala. 2000)). The court noted that contracts involving minors are generally [*9] voidable, yet carved out an exception to this default rule due to the following policy considerations (1) “the availability of medical insurance to minors depends on whether parents” can bind their children to these subrogation clauses; (2) “a minor cannot take the benefits of a contract while disaffirming the burdens;” and (3) a minor not bound to this subrogation clause would receive a windfall by recovering from both an insurer and a tortfeasor for the same injury. Id. at 804 (quoting Hamrick v. Hosp. Serv. Corp., 110 R.I. 634, 296 A.2d 15, 17-18 (R.I. 1972)).
Third, [HN5] Alabama courts have restricted the right of a parent or guardian to release a minor’s post-injury claims. Abernathy v. Colbert Cnty. Hosp. Bd., 388 So. 2d 1207, 1209 (Ala. 1980). Specifically, a parent or guardian cannot bind a minor to a settlement that releases the minor’s post-injury claims without express court approval. Id. The rationale behind the need for express court approval, similar to the voidable contract rule for minors, is to protect the minor’s “best interest[s].” Id.
The teaching of these cases is that, in Alabama, the default rule is that contracts with minors are voidable. While the Alabama Supreme Court has shown [*10] willingness to make a narrow exception to this rule in the unique factual scenario from Peck v. Dill, that case serves as an exception, not a change in, the default rule.
B. Law from Other Jurisdictions
Because no Alabama case or statute directly addresses the issue of the case at bar, the court turns to the law of other jurisdictions for persuasive guidance. There are three important conclusions to be drawn from the law of other jurisdictions.
First, [HN6] the majority rule in the United States is that parents may not bind their children to pre-injury liability waivers by signing the waivers on their children’s behalf. See, e.g., Galloway v. Iowa, 790 N.W.2d 252, 2010 WL 4365953, at *4 (Iowa 2010) (listing cases and stating that “the majority of state courts who have examined the issue . . . have concluded public policy precludes enforcement of a parent’s preinjury waiver of her child’s cause of action for injuries caused by negligence”); Kirton v. Fields, 997 So. 2d 349, 356 (Fla. 2008) (listing cases, and stating that “[i]n holding that pre-injury releases executed by parents on behalf of minor children are unenforceable for participation in commercial activities, we are in agreement [*11] with the majority of other jurisdictions.”).
Second, many courts rejecting parents’ right to bind children to pre-injury releases have relied on legal principles recognized by Alabama, as discussed above. For example, courts have relied in part on the principle that parents may not bind a child to a settlement releasing post-injury claims without court approval. Galloway, 790 N.W.2d 252, 2010 WL 4365953, at *6 (“As the Washington Supreme Court has noted, if a parent lacks authority without court approval to compromise and settle her minor child’s personal injury claim after an injury has occurred, ‘it makes little, if any, sense to conclude a parent has the authority to release a child’s cause of action prior to an injury.'”) (quoting Scott v. Pac. W. Mountain Resort, 119 Wn.2d 484, 834 P. 2d 6, 11-12 (Wash. 1992)); accord Hojnowski v. Vans Skate Park, 187 N.J. 323, 901 A.2d 381, 386 (N.J. 2006); Meyer v. Naperville Manner, Inc., 262 Ill. App. 3d 141, 634 N.E.2d 411, 414-15, 199 Ill. Dec. 572 (Ill. App. Ct. 1994). Courts have also relied on the policy, also recognized in Alabama, of the state’s role of protecting minors from harm. See, e.g., Kirton, 997 So. 2d at 357-58; Hojnowski, 901 A.2d at 386; Meyer, 634 N.E.2d at 414-15.
Third, the only published decisions from [*12] other jurisdictions that have bound children to pre-injury releases executed by a parent or guardian on the child’s behalf have done so in the context of a “minor’s participation in school-run or community-sponsored activities.” Kirton, 997 So. 2d at 356 (citing Hohe v. San Diego Unified Sch. Dist., 224 Cal. App. 3d 1559, 274 Cal. Rptr. 647 (1990); Sharon v. City of Newton, 437 Mass. 99, 769 N.E. 2d 738 (2002); Zivich v. Mentor Soccer Club, Inc., 82 Ohio St. 3d 367, 1998 Ohio 389, 696 N.E. 2d 201, 205 (1998). By contrast, this court is not aware of a single case, that has not been overturned, that has held these clauses to be binding in the context of a for-profit activity. 2
2 In Cooper v. Aspen Skiing Co., the Colorado Supreme Court reversed a Colorado appellate court’s holding that a parent’s waiver on behalf of a minor was binding in favor of a for-profit ski company. 48 P.3d 1229, 1230-31 (Colo. 2002). That case was subsequently superseded by a statute that stated that “[a] parent of a child may, on behalf of the child, release or waive the child’s prospective claim for negligence.” Colo. Rev. Stat. § 13-22-107(3). The fact that Colorado’s legislature, not courts, modified the default rule that a contract with a minor is voidable suggests that changing [*13] this default rule should be a legislative choice.
C. Application to the Case at Bar
The court concludes, based on the law of Alabama as well as persuasive authority from other jurisdictions, that the Release signed by Thompson on J.T.’s behalf is not binding on J.T.
First, J.T. is a minor, so the applicable default rule under Alabama law is that any contract made with J.T. is voidable.
Second, there is no exception under current Alabama law that requires that this court apply a different rule under the facts of this case. For example, the policy considerations that the Alabama Supreme Court discussed in Peck, of ensuring that minors receive medical care and do not receive windfalls, do not apply to the facts of this case. This is not a case about a child receiving medical care, rather, it is a case about a child participating in a recreational event.
Third, under Alabama law, a parent may not bind a child to a settlement releasing the child’s post-injury claims without express court approval. This court agrees with the rationale of other jurisdictions that it would be completely illogical if, despite this rule, a parent could bind a child, before any injury occurs, to an exculpatory clause [*14] releasing parties from any liability for injuries which might be caused in the future, simply by signing a contract on the child’s behalf.
Fourth, the weight of authority in other jurisdictions suggests that the release in this case is not binding. The majority rule in jurisdictions throughout the United States is that a parent may not bind a child to a liability waiver. Moreover, and more significantly, no published decision that has not been overturned holds that a parent may bind a child to a liability waiver in favor of a for-profit entity, such as the Monster Mountain Defendants in this case. The few cases that have upheld a pre-injury waiver have made a point of emphasizing that the policy reasons for doing so are based on the fact of the defendant being a non-profit sponsor of the activity involved, such as with school extra-curriculars.
Based on all of the above considerations, the court concludes that, [HN7] under Alabama law, a parent may not bind a child to a pre-injury liability waiver in favor of a for-profit activity sponsor by signing the liability waiver on the child’s behalf. Accordingly, the Release Thompson signed on J.T.’s behalf, based on authority given by J.T.’s parents, [*15] does not bar J.T. from asserting a negligence claim against the Monster Mountain Defendants. Summary judgment on this issue in favor of the Monster Mountain Defendants, therefore, is due to be DENIED. 3
3 The court does not hold that an indemnity agreement, such as that contained in another clause of the Release, signed by parents in order for their child to be allowed to participate in a dangerous activity, would not be enforceable against the parties. That issue is not presented.
V.CONCLUSION
For the foregoing reasons, the Motion for Summary Judgment (Doc. #30) is ORDERED DENIED.
Done this 9th day of December, 2010.
/s/ W. Harold Albritton
W. HAROLD ALBRITTON
SENIOR UNITED STATES DISTRICT JUDGE
Good Release stops lawsuit against Michigan bicycle renter based on marginal acts of bicycle renter
Posted: May 30, 2011 Filed under: Cycling, Michigan, Release (pre-injury contract not to sue) | Tags: Bicycle Demo Release, Bicycle Release, Bicycle Rental, Mackinac Island, Michigan, Release, Waiver Leave a commentDuncan, et al., v. Ryba Company, 1999 U.S. Dist. LEXIS 12424
However other states would have found problems with the issues in this case.
A couple was on Mackinac Island Michigan and decided to rent bikes. The plaintiff noticed the seat, and pedals were loose and before leaving asked the shop to fix both. She was assured that both had been fixed by the shop before leaving on their ride.
After a short distance, the plaintiff knew the seat had not been fixed and she and her husband decided to take the bikes back and rent them from somewhere else. As she turned the bike around to go back, she lost control, the brakes failed, and she crashed in front of an oncoming horse drawn carriage. The horse kicked the plaintiff causing her injuries.
The plaintiff and her husband sued the bicycle rental shop. The lower court granted the defendant’s motion for summary judgment, and the case was appealed.
So?
The court first looked at release law in Michigan. To be valid a release under Michigan’s law must be fairly and knowingly made. A release is not valid under Michigan’s law if:
(1) the releasor was dazed, in shock, or under the influence of drugs,
(2) the nature of the instrument was misrepresented, or
(3) there was other fraudulent or overreaching conduct.
The plaintiff first claimed the release was not valid because they were not informed the slips of paper, in other places called deposit slips, where releases. The plaintiff also claimed she did not have her reading glasses. The court interpreted this argument as the plaintiff claimed she did not read the release, and therefore, the release should not be valid. However, the court quickly dismissed this argument with the statement “It is well settled under Michigan’s law that a party’s failure to read release language before signing the document does not invalidate a proper release.” The court also found that for a release to fail because it was not identified as such to the plaintiff would also not work as a defense. However, the court stated the law “the law [does not] require an explanation that the document is a release or waiver of rights.”
For the release to fail, misrepresentation or fraud must be used to induce the plaintiff to sign the release. A simple misrepresentation or fail to explain the release will not void the release. A misrepresentation must be made with the purpose and intent to mislead or deceive the signor. There must be the fraudulent intent to mislead the signor.
The plaintiff then claimed an employee of the defendant said the releases were for the deposit on the bikes. However, the court struck down this argument in two ways.
First the court pointed out if the plaintiff would have read the document, she would have realized it was a release. The release was three sentences, each, which stated the release of liability. The second point was the plaintiffs could not point to the actions of the defendant’s employee as an intentional with the intent to deceive or induce the signature.
The plaintiff argued an amended complaint should be allowed to be filed that alleged the acts of the defendant were grossly negligent. However, the court denied the motion to amend the complaint and thus the gross negligence claim because the plaintiff could not point to anything in the facts that rose to the level of gross negligence.
Gross Negligence under Michigan’s law is defined as “conduct so reckless as to demonstrate a substantial lack of concern for whether an injury results.”
The court also pointed out that even though the bicycle seat was not fixed, the plaintiff continued to ride the bicycle rather than walk the bicycle back to the shop. The acts of the defendant, if the plaintiff continued to ride the bike, could not have been so bad to be grossly negligent.
“Simply labeling negligence allegations as conduct amounting to gross negligence is not enough to satisfy plaintiffs’ burden in this case.”
So Now What?
Although the defendant won this lawsuit, in other states this case might have gone differently.
As I have repeatedly said, make sure your release is clear and evident on its face. Your release should state it is a release or the signor is giving up future legal rights. Don’t hide your release from your clients.
There are also the ethical issues of hiding a release inside documents or identified as something else.
The second issue is telling the plaintiff the bike was fixed when it wasn’t or not fixed correctly. In many jurisdictions, this could have given rise to a misrepresentation and fraud claim that may have won in many jurisdictions.
As much as courts follow the law, the ethics of the situation can always come into play with the judge and will definitely come to play with the jury. The defendant may have the law on their side but can lose because the jury sees what the defendant did as just “not right.”
Treat your customers honestly and you will increase your chances dramatically in staying out of court.
What do you think? Leave a comment.
Jim Moss is an attorney specializing in the legal issues of the outdoor recreation community. He represents guides, guide services, and outfitters both as businesses and individuals and the products they use for their business. He has defended Mt. Everest guide services, summer camps, climbing rope manufacturers; avalanche beacon manufacturers, and many more manufacturers and outdoor industries. Contact Jim at Jim@Rec-Law.us Jim is the author or co-author of eight books about legal issues in the outdoor recreation world; the latest is Outdoor Recreation Insurance, Risk
Management, and Law. To Purchase Go Here:
To see Jim’s complete bio go here and to see his CV you can find it here. To find out the purpose of this website go here.
If you are interested in having me write your release, download the form and return it to me.
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Duncan, et al., v. Ryba Company, 1999 U.S. Dist. LEXIS 12424
Posted: May 30, 2011 Filed under: Cycling, Michigan, Release (pre-injury contract not to sue) | Tags: Bicycle Demo Release, Bicycle Release, Lakewview Bike Rental, Mackinac Island, Michigan, Release, Rental Release, Ryba Company Leave a commentTo Read an Analysis of this decision see
Good Release stops lawsuit against Michigan bicycle renter based on marginal acts of bicycle renter
Duncan, et al., v. Ryba Company, 1999 U.S. Dist. LEXIS 12424
Linda Duncan, et al., Plaintiffs, v. Ryba Company, Defendant.
Case No. 2:98-cv-194, CONSENT CASE
UNITED STATES DISTRICT COURT FOR THE WESTERN DISTRICT OF MICHIGAN, NORTHERN DIVISION
1999 U.S. Dist. LEXIS 12424
August 6, 1999, Decided
August 6, 1999, Filed
DISPOSITION: [*1] Defendant’s motion for summary judgment granted and plaintiffs’ motion to amend the complaint denied. Case DISMISSED.
COUNSEL: For LINDA DUNCAN, JIM DUNCAN, plaintiffs: Harry Ingleson, II, Lyon & Ingleson, Cheboygan, MI.
For RYBA COMPANY, defendant: Paul M. Brewster, Lewinski & Brewster, Sault Ste. Marie, MI.
JUDGES: TIMOTHY P. GREELEY, UNITED STATES MAGISTRATE JUDGE.
OPINION BY: TIMOTHY P. GREELEY
OPINION
OPINION
Plaintiffs Linda Duncan and her husband, Jim Duncan, filed this lawsuit against defendant Ryba Company for injuries sustained by Linda Duncan. Defendant has filed a motion for summary judgment, and plaintiffs have filed a motion to amend their complaint. The parties filed a consent to proceed before the undersigned pursuant to 28 U.S.C. § 636(c). A hearing was held on June 1, 1999. Plaintiffs were ordered to file an affidavit supporting their motion to amend their complaint. Plaintiffs filed an affidavit and defendant has filed a responsive pleading to the affidavit.
On August 2, 1996, the Duncans rented two bicycles from Lakeview Bike Rental on Mackinac Island, Michigan. Defendant Ryba Company operates Lakeview Bike Rental on the Island. Prior to taking [*2] the bicycles, plaintiff Linda Duncan signed a release which stated in part:
I hereby assume full responsibility for the use of Bicycle No. …. The owner of the Bicycle assumes no liability for injury to me while I am using same. I do hereby certify that I have this day thoroughly examined the above machine and find the same with all equipment thereon in a safe and satisfactory condition.
Plaintiff Linda Duncan alleges in her original complaint that she noticed that the pedals and handlebars were loose and that the bicycle had no brakes. She immediately notified defendant’s employee and requested that necessary repairs be made on the bicycle. She also asked if the seat could be lowered. According to the complaint, the bicycle was returned to plaintiff with assurances that the repairs had been made. Plaintiff began to ride the bike and immediately noticed that the repairs had not been made. Plaintiff attempted to turn the bicycle around to return to the rental place. However, she lost control and fell into the path of an oncoming horse drawn carriage. Ms. Duncan was kicked by a horse pulling the carriage. Jim Duncan sues for loss of consortium. Plaintiffs request [*3] judgment in the amount of $ 125,000 against defendant.
James and Linda Duncan filed an affidavit after the hearing in this matter to clarify the factual allegations in their complaint and proposed amended complaint. After receiving the “deposit slips,” which also contained the release language, the Duncans were helped by a male who made no representations about the mechanical fitness of the bicycles. The employee encouraged Linda Duncan to ride a boys’ bicycle. Linda Duncan noticed the seat was loose and asked that it be tightened. The employee took some action to tighten the seat. Nothing else was done to the bicycle. As Linda Duncan began to ride the bicycle she noticed “that the seat was still loose and also heard some clicking noise involving the pedals/chains.” Apparently the Duncans decided that they would return the bicycles and rent elsewhere. When Linda Duncan applied the brakes on her bicycle, she was surprised that they did not work. She then fell attempting to dismount the bicycle.
Presently before the Court is defendants’ Motion for Summary Judgment, filed pursuant to Fed. R. Civ. P. 56. Plaintiffs have filed a response and the matter is ready for decision. [HN1] Summary judgment [*4] is appropriate only if the moving party establishes that there is no genuine issue of material fact for trial and that he is entitled to judgment as a matter of law. Fed. R. Civ. P. 56(c); Celotex Corp. v. Catrett, 477 U.S. 317, 322-323, 91 L. Ed. 2d 265, 106 S. Ct. 2548 (1986). If the movant carries the burden of showing there is an absence of evidence to support a claim or defense, then the party opposing the motion must demonstrate by affidavits, depositions, answers to interrogatories, and admissions on file, that there is a genuine issue of material fact for trial. Id. at 324-25. The nonmoving party cannot rest on its pleadings but must present “specific facts showing that there is a genuine issue for trial.” Id. at 324 (quoting Fed. R. Civ. P. 56(e)). While the evidence must be viewed in the light most favorable to the nonmoving party, a mere scintilla of evidence in support of the nonmovant’s position will be insufficient. Anderson v. Liberty Lobby, Inc., 477 U.S. 242, 251-52, 91 L. Ed. 2d 202, 106 S. Ct. 2505 (1986). Ultimately, the Court must determine whether there is sufficient “evidence on which the jury [*5] could reasonably find for the plaintiff.” Id. at 252.
Defendant argues that the release signed by plaintiff entitles defendant to summary judgment on all claims. [HN2] Under Michigan, law a party may contract against liability for damages caused by ordinary negligence. Dombrowski v. City of Omer, 199 Mich. App. 705, 502 N.W.2d 707 (1993); Skotak v. Vic Tanny International, Inc., 203 Mich. App. 616, 513 N.W.2d 428 (1994). The validity of a release is controlled by the intent of the parties to the contract. A release is valid if it is fairly and knowingly made. A release is invalid if (1) the releasor was dazed, in shock, or under the influence of drugs, (2) the nature of the instrument was misrepresented, or (3) there was other fraudulent or overreaching conduct.
Plaintiffs do not claim that the language contained within the release was improper or insufficient to release defendant from liability for ordinary negligence. Plaintiffs claim that the release is invalid because defendant’s employees only informed plaintiff Linda Duncan that she had to sign the two slips of paper containing the release language to get her deposit back. Plaintiffs [*6] claim that they were not informed that the slips of paper also contained release language. In their response brief it is claimed that plaintiff Linda Duncan did not have her reading glasses with her. The court presumes that plaintiff Linda Duncan is claiming that she did not read the release prior to signing it. [HN3] It is well settled under Michigan law that a party’s failure to read release language before signing the document does not invalidate a proper release. Dombrowski, Mich. App. at 710, 502 N.W.2d at 710. Nor does the law require an explanation that the document is a release or waiver of rights. Paterek v. 6600 Limited, 186 Mich. App. 445, 449, 465 N.W.2d 342, 344 (1990). A release will be held invalid if misrepresentation or fraud was used to induce the releasor to sign the document. A simple misrepresentation will not invalidate an otherwise valid release. In Paterek, the plaintiff, who injured himself playing softball, sued the filed owner. Plaintiff had signed an official team roster and contract which contained release language. Plaintiff alleged that he was never informed that the roster was a release of waiver of his rights. The court [*7] rejected plaintiff’s claim of misrepresentation.
We believe, however, that plaintiffs have misconstrued the meaning of “misrepresent” in this context. . . . [A] misrepresentation must be made with the intent to mislead or deceive. In the instant case, none of the documentary evidence available to the trial court raised a reasonable inference that defendant or its agents intentionally or fraudulently misrepresented the nature of the roster/contract. At the most, the document may have been innocently misrepresented, which would not have been sufficient to invalidate the release. Therefore, there was no genuine issue of material fact and plaintiffs’ claim was barred by the release.
This conclusion is also supported by the principle that one who signs a contract cannot seek to invalidate it on the basis that he or she did not read it or thought that its terms were different, absent a showing of fraud or mutual mistake. As we stated in Moffit v. Sederlund, 145 Mich. App. 1, 8, 378 N.W.2d 491 (1985), lv. den. 425 Mich. 860 (1986), ” [HN4] failure to read a contract document provides a ground for rescission only where the failure was not induced by [*8] carelessness alone, but instead was induced by some stratagem, trick, or artifice by the parties seeking to enforce the contract.” Id. See also Christensen v. Christensen, 126 Mich. App. 640, 645, 337 N.W.2d 611 (1983), lv. den. 417 Mich. 1100.45 (1983). This principle is directly applicable to the facts of this case, where plaintiff admits to signing the release contract, but claims that he was not aware of the terms of the document.
186 Mich. App. at 449, 465 N.W.2d at 345.
Plaintiffs claim that defendant’s employee told plaintiff Linda Duncan that the bike rental agreements were for her deposit. Plaintiffs argue that defendant’s employee misrepresented the nature of the bike rental agreement. It is clear that the bike rental agreement was used to record plaintiffs’ deposit. It is also clear that in very simple language the bike rental agreement released defendant’s liability. The agreement contains three simple sentences. Each of the sentences involve the release of liability. The alleged employee’s statement that the agreement was for the deposit was a correct statement. At most, a simple misrepresentation may have occurred. [*9] However, plaintiff Linda Duncan’s failure to read the release language is no defense to an otherwise valid release that she signed. Plaintiffs can point to no evidence to support a claim that defendant’s employee fraudulently induced Linda Duncan to sign the rental agreement. The record supports the conclusion that plaintiff Linda Duncan signed a valid release of liability. Defendant is entitled to dismissal of plaintiffs’ claims of negligence.
Plaintiffs have filed a motion to amend their complaint to add new theories of negligence, a claim of gross negligence, and a violation of the Michigan Consumers Protection Act. [HN5] Leave to amend a complaint “shall be freely given when justice so requires.” Fed. R. Civ. P. 15(a). The court may deny leave to amend a complaint where the amendment is brought in bad faith, will result in undue delay or prejudice to the opposing party, or is futile. Crawford v. Roane, 53 F.3d 750, 753 (6th Cir. 1995), cert. denied, 517 U.S. 1121, 116 S. Ct. 1354, 134 L. Ed. 2d 522 (1996).
Plaintiffs negligence claims include failure to properly train, failure to warn of bike, pedestrian and horse traffic, and other dangers on the [*10] Island. However, the release that Linda Duncan signed in the bike rental agreement covered ordinary negligence. Plaintiffs have attempted to overcome the release language by proposing a claim of gross negligence. [HN6] Under Michigan law it is recognized that a release clause absolving a party from liability for gross negligence is against public policy. Universal Gym Equipment v. Vic Tanny International, 207 Mich. App. 364, 367, 526 N.W.2d 5, 7 (1995), vacating remand 209 Mich. App. 511, 531 N.W.2d 719. Plaintiffs assert that defendant was grossly negligent for “failing to inspect and maintain its equipment, with added knowledge of the use to which the equipment was going to be put. . . .” Gross negligence has been defined as conduct so reckless as to demonstrate a substantial lack of concern for whether an injury results. Jennings v. Southwood, 446 Mich. 125, 136-37, 521 N.W.2d 230 (1994). It appears that although plaintiffs label defendant’s conduct as gross negligence, they are merely suing defendant for negligence. Plaintiffs have failed to explain to this court how defendant was grossly negligent in failing to inspect and maintain its [*11] equipment as opposed to simply negligent in failing to inspect and maintain its equipment. At most, plaintiffs have alleged that defendant’s employee failed to properly tighten the loose seat after plaintiff Linda Duncan complained that the seat was loose. This allegation fails to rise to the level of gross negligence. Moreover, it appears that plaintiff Linda Duncan continued to ride the bicycle, without any perceived difficulty, even after she discovered that the bicycle seat was still loose. Plaintiffs also allege that the brakes on the bike were defective. Plaintiffs have failed to submit allegations or factual circumstances that could possibly cause the alleged negligence to rise to gross negligence. Simply labeling negligence allegations as conduct amounting to gross negligence is not enough to satisfy plaintiffs’ burden in this case.
Plaintiffs also seek to add a claim for a violation of the Michigan Consumer Protection Act, M.C.L. § 445.903, M.S.A. § 19.418(3). While plaintiffs reassert the statutory language in their proposed amended complaint, the proposed amended complaint fails to allege how defendants may have violated the act. Moreover, plaintiffs have failed to submit [*12] a brief with their motion to amend their complaint which could assist the court in understanding the proposed theory of liability. Absent any explanation as to how the factual allegations could possibly justify a violation of the Michigan Consumer Protection Act, as stated in the complaint, the court will not allow the proposed amendment.
Accordingly, defendant’s motion for summary judgment will be granted and plaintiffs’ motion to amend the complaint will be denied.
Dated: August 6, 1999
TIMOTHY P. GREELEY
UNITED STATES MAGISTRATE JUDGE
JUDGMENT
In accordance with the opinion issued this date,
IT IS HEREBY ORDERED that plaintiffs’ motion to amend complaint (Docket # 28) is DENIED.
IT IS FURTHER ORDERED that defendant’s motion for summary judgment (Docket # 26) is GRANTED and this case is DISMISSED.
IT IS SO ORDERED.
Dated: August 6, 1999
TIMOTHY P. GREELEY
UNITED STATES MAGISTRATE JUDGE
Colorado has a “Bill of Rights” for kids to experience the outdoors.
Posted: May 20, 2011 Filed under: Colorado, Minors, Youth, Children | Tags: Adventure travel, Bill of Rights, CAEE, Colorado, JimMoss, Kids Bill of Rights, Outdoor recreation, Ropes course Leave a commentThis is really cool.
What do you think? Leave a comment.
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Release stops suit for falling off horse at Colorado summer Camp.
Posted: April 18, 2011 Filed under: Colorado, Equine Activities (Horses, Donkeys, Mules) & Animals, Minors, Youth, Children, Release (pre-injury contract not to sue), Youth Camps | Tags: Appellate Court, Child, Colorado, Gross negligence, Hamill, Minor, Parental Responsibility, Parental Rights, Rock climbing, Summary judgment, Summer Camp Leave a commentHamill v. Cheley Colorado Camps, Inc., 2011 Colo. App. LEXIS 495
I always enjoy it when people with money, sue to get more money…..
In this case, the minor plaintiff fell off a horse and suffered a broken arm. She sued for her damages. What makes this sort of amusing is the minor had attended the camp two prior years. Her mother has signed the release three consecutive times. However, the plaintiff sued.
The allegations in the complaint were the wrangler had inappropriately saddled the horse she rode. This is a classic claim used to get around equine liability acts. Equine liability acts are 100% effective. Since they have been passed no horse has been sued. However, suits against horse owners have increased.
For additional articles about equine (horse) lawsuits and why Equine Liability Acts have little value see: $2.36 M awarded to a boy kicked by horse during inner-city youth program and $1.2 M award in horseback riding fatality in Wyoming.
The district court (trial or first court) granted the defendant camp’s motion for summary judgment. And the Plaintiff appealed. The basis for the appeal was:
she was a minor and her mother did not make an informed decision, the agreement did not extinguish her negligence claims and that disputed material facts preclude the grant of summary judgment on her gross negligence claim.
The first issue the court reviewed was whether the release was valid under Colorado law. The court found there were four tests that had to be met for the release to be valid.
(1) the existence of a duty to the public;
(2) the nature of the service performed;
(3) whether the contract was fairly entered into; and
(4) whether the intention of the parties is expressed in clear and unambiguous language.
B & B Livery, Inc. v. Riehl, 960 P.2d 134, 136 (Colo. 1998) (citing Jones, 623 P.2d at 376).
The court found the first two tests were met because recreational activities create no duty to the public and are not necessary for living.
The next test was whether the contract was fairly entered into. This is a case of whether the injured party had the opportunity to go somewhere else or not participate. Whether one party was at the mercy of the other party because of unequal bargaining power. However, again, recreational activities are not something that a parent or participant is forced to undertake. On top of that the mother admitted she voluntarily signed the release…..three times.
More importantly the court found the plaintiff could have attended other camps. She was not forced to attend the defendant camp.
The last test also can be examined multiple ways. First way is, is the agreement plan on its face is it written in such a way that the parties understand what it says or should have understood what it said. Another way is whether the agreement, the release, clearly evidenced the intent of the party’s.
Here you can release one party from negligent conduct as long as the intent of the parties is clearly expressed in the contract. Here the release expressly contained language that the court found was clear to the plaintiff and her mother of the intent of the release.
The agreement sufficiently placed Hamill’s mother on notice that the “[e]quipment used . . . may break, fail or malfunction” and that “counselors . . . may misjudge . . . circumstances.” The breadth of the release persuades us that the parties intended to disclaim legal liability for negligence claims. Indeed, misjudging a situation can amount to negligence.
The classic I now did not understand the release is also looked at this point, and the court rejected that argument.
An agreement with such plain and unambiguous terms will not fail because one of the parties, in hindsight, now claims to have misunderstood the scope of that agreement — to govern only conduct outside of Cheley’s control — based on ambiguities not readily apparent within the four corners of the agreement.
The court succinctly summed up its decision about the release stating:
Because the agreement did not implicate a public duty, did not involve an essential service, was fairly entered into, and it plainly expressed the intent to release prospective negligence claims, we hold that the agreement is valid.
The court then reviewed the recently enacted Colorado statute allowing a parent to sign away a minor’s right to sue C.R.S. § 13-22-107. A recent decision by the Colorado Appellate court had thrown out a release signed by a mother because it was not sufficient to meet the requirements of the statute. See Releases are legal documents and need to be written by an attorney that understands the law and the risks of your program/business/activity and your guests/members/clientele which discussed the case Wycoff v. Grace Community Church of the Assemblies of God, 2010 Colo. App. LEXIS 1832.
The statute requires the parent who is signing a release for a minor to be voluntary and informed. The court stated that “A parent’s decision is informed when the parent has sufficient information to assess the potential degree of risks involved, and the extent of possible injury.” quoting Wycoff v. Grace Community Church of the Assemblies of God, 2010 Colo. App. LEXIS 1832.
Here the mother and the plaintiff knew of the risks because the plaintiff had attended the camp two prior years and had ridden horses those two years.
The final argument was made that the release did not bar claims for gross negligence. However, the court found the complaint and the other documents in the case did not plead any facts giving rise to a claim that would be a gross negligence claim. Under the Colorado law gross negligence is “willful and wanton conduct, that is, action committed recklessly, with conscious disregard for the safety of others.” Nothing in the documents indicated the defendant had acted willfully or wantonly.
One interesting part of this case was a statement quoted in the case from a deposition of the mother. The defendant’s attorney referred to Christopher Reeves, who suffered a fall from a horse becoming a quadriplegic and eventually died from the injuries. The mother answered she personally knew Mr. Reeve. If you want to do a little research, match the names of the parties, and determine who would know other movie stars.
So?
Again and again, and again, make sure you have a well written release. That was the first and best thing done in this case. The release stood up to scrutiny by the trial court and the appellate court.
The next thing is always have good facts. The court pointed out the wrangler checked the saddle two or three times before the plaintiff rode the horse which eliminated the gross negligence argument. Good facts do not mean to only defend yourself when you are going to win. It means to do things right, and you don’t have to worry and if you do have a problem you will win.
Here the wrangler had been well trained in how to deal with the situation and problems of kids at summer camps riding horses. Before the plaintiff was allowed to mount the horse the saddle was checked and double checked.
So Now What?
Hire well, train well and treat well; the three ideas to keep employees part of your defense team. Your employees do not need to lawsuits and not have a lawsuit become a forum for any employee to come back at you.
See 7 Mistakes Made by People, who are called Defendant. Hire good people to begin with. Work hard at hiring people who like people and understand the job. The job is not to show off to little kids about how great a horseman you are, the job is to get kids on horses and have them have a good time. The job is to have the kids leave the ring the same way they entered the ring with a big grin on top of a horse.
Never hire for skills except people skills. You can teach anyone to ride a horse, row a raft or run a ropes course. Finding someone who can remember to double check everything, deal with a problem child and entertain at the same time is a little harder. However, those people are out there, work harder and find them.
7 Mistakes Made by People who are called Defendant.
1. Hire and retain Uncaring Employees: Hire Well, Train Well, and Treat Well
2. Failing to Know Your Customers and why they are buying from you.
3. Failing to Treat Your Customers the Way They Want to Be Treated:
4. Examining the problem from Your Perspective: Your customer sees the problem differently than you. The customer may not even understand the problem.
5. Placing a ridiculous value on principles and pride. Principles & Pride Goethe before a Lawsuit
6. Never know Why you are being sued: Sticking your head in the sand, or passing the problem to a lawyer does not resolve the problem.
7. Forgetting What Your Mother Taught You: If you act like your mother taught you, you won’t be sued.
| Jim Moss is an attorney specializing in the legal issues of the outdoor recreation community. He represents guides, guide services, outfitters both as businesses and individuals and the products they use for their business. He has defended Mt. Everest guide services, summer camps, climbing rope manufacturers; avalanche beacon manufactures and many more manufacturers and outdoor industries. Contact Jim at Jim@Rec-Law.us |
Jim is the author or co-author of six books about the legal issues in the outdoor recreation world; the latest is Outdoor Recreation Insurance, Risk Management and Law.
To see Jim’s complete bio go here and to see his CV you can find it here. To find out the purpose of this website go here.
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Hamill v. Cheley Colorado Camps, Inc., 2011 Colo. App. LEXIS 495
Posted: April 18, 2011 Filed under: Colorado, Equine Activities (Horses, Donkeys, Mules) & Animals, Minors, Youth, Children, Release (pre-injury contract not to sue), Summer Camp | Tags: Cheley Camps, Equine Activities, horseback riding, Release, Star Wars, Summer Camp Leave a commentTo Read an Analysis of this decision see: Release stops suit for falling off horse at Colorado summer Camp.
Hamill v. Cheley Colorado Camps, Inc., 2011 Colo. App. LEXIS 495
Chelsea E. Hamill, Plaintiff-Appellant, v. Cheley Colorado Camps, Inc., a Colorado corporation, Defendant-Appellee.
Court of Appeals No. 10CA0138
COURT OF APPEALS OF COLORADO, DIVISION TWO
2011 Colo. App. LEXIS 495
March 31, 2011, Decided
NOTICE:
THIS OPINION IS NOT THE FINAL VERSION AND SUBJECT TO REVISION UPON FINAL PUBLICATION
PRIOR HISTORY: [*1]
City and County of Denver District Court No. 08CV6587. Honorable Herbert L. Stern, III, Judge.
DISPOSITION: JUDGMENT AFFIRMED.
COUNSEL: Roberts, Levin, Rosenberg, PC, Ross B.H. Buchanan, Bradley A. Levin, Denver, Colorado, for Plaintiff-Appellant.
White and Steele, P.C., John M. Lesback, John P. Craver, Denver, Colorado, for Defendant-Appellee.
JUDGES: Opinion by JUDGE FOX. Casebolt and Loeb, JJ., concur.
OPINION BY: FOX
OPINION
Plaintiff, Chelsea E. Hamill (Hamill), appeals the district court’s grant of summary judgment in favor of defendant, Cheley Colorado Camps, Inc. (Cheley). We affirm the judgment.
I. Facts and Procedural History
Hamill attended summer camp at Cheley in 2002, 2003, and 2004. Before attending camp each summer, Hamill and her parents signed a Liability/Risk Form (the agreement).
In July 2004, when Hamill was fifteen years old, she fell off a Cheley horse and broke her arm. Hamill sued Cheley for negligence and gross negligence, arguing that a Cheley wrangler had inappropriately saddled the horse she rode. The district court granted Cheley’s motion for summary judgment on the two negligence claims, ruling that although Hamill was a minor, the agreement barred her claims and that there was no gross negligence as a matter [*2] of law. 1
1 In addition, the district court determined that whether a saddle can slip due to negligence, or because of animal behavior, presented issues of fact under section 13-21-119, C.R.S. 2010, the equine immunity act. Because of its ruling on the agreement, however, the court also ruled that the equine act claim need not be submitted to a jury.
Hamill appeals the district court’s judgment, claiming that because she was a minor and her mother did not make an informed decision, the agreement did not extinguish her negligence claims and that disputed material facts preclude the grant of summary judgment on her gross negligence claim. We disagree and therefore affirm the judgment.
II. Standard of Review
[HN1] Summary judgment is appropriate where the pleadings, admissions, depositions, answers to interrogatories, and affidavits confirm that no genuine issue of material fact exists and judgment should be entered as a matter of law. C.R.C.P. 56(c); Jones v. Dressel, 623 P.2d 370, 373 (Colo. 1981). When asked to grant summary judgment, the district court “must resolve all doubts as to whether an issue of fact exists against the moving party.” Jones, 623 P.2d at 373. [HN2] We review a summary judgment [*3] ruling de novo. Aspen Wilderness Workshop, Inc. v. Colorado Water Conservation Bd., 901 P.2d 1251, 1256 (Colo. 1995).
Exculpatory agreements are construed strictly against the party seeking to limit its liability. Heil Valley Ranch, Inc. v. Simkin, 784 P.2d 781, 784 (Colo. 1989). However, the validity of such waivers is a question of law, which we review de novo. Jones, 623 P.2d at 376; Stanley v. Creighton Co., 911 P.2d 705, 707 (Colo. App. 1996).
III. Parental Consent to Exculpatory Agreements Affecting Minors
Hamill argues that the exculpatory clauses in the agreement do not bar her negligence claims. She reasons that the agreement is invalid under the four-part test articulated in Jones, 623 P.2d at 376, and that her mother did not make an informed decision under section 13-22-107, C.R.S. 2010, to release her prospective negligence claims. This statute states that [HN3] “[s]o long as [a parent’s] decision [to waive the child’s claims] is voluntary and informed, the decision should be given the same dignity as decisions regarding schooling, medical treatment, and religious education.” § 13-22-107(1)(a)(V), C.R.S. 2010 (emphasis added).
We disagree with Hamill’s position.
The agreement, and [*4] our interpretation of section 13-22-107(1)(a)(V), direct our decision.
The release language in the agreement states:
Release, Waiver of Liability and Indemnification
I, on behalf of myself and my child, hereby release and waive any claim of liability against Cheley . . . with respect to any injury . . . occurring to my child while he/she participates in any and all camp programs and activities.
I hereby agree to indemnify and hold harmless Cheley . . . with respect to any claim asserted by or on behalf of my child as a result of injury . . . .
I HAVE READ AND UNDERSTAND THE ABOVE AND AGREE TO BE BOUND BY THE TERMS OF THIS DOCUMENT.
(Emphasis by italics added.)
Another section of the agreement, labeled “Acknowledgment & Assumption of Risks and Waiver of Claims for Minors,” states:
PLEASE READ CAREFULLY BEFORE SIGNING. THIS DOCUMENT INCLUDES A RELEASE OF LIABILITY AND WAIVER OF CERTAIN LEGAL RIGHTS.
. . . .
Acknowledgment of Risks
I understand there are numerous risks associated with participation in any camping activities, including . . . horseback riding . . . . Many, but not all of these risks are inherent in these and other activities. . . .
Equipment used in the activity may break, fail or [*5] malfunction, despite reasonable maintenance and use. Some of the equipment used in activities may inflict injuries even when used as intended. Persons using equipment may lose control of such equipment and cause injury to themselves and to others.
. . . .
Counselors and guides use their best judgment in determining how to react to circumstances including . . . animal character . . . . The counselors and guides may misjudge such circumstances, an individual’s capabilities and the like.
. . . .
These are some, but not all, of the risks inherent in camping activities; a complete listing of inherent and other risks is not possible. There are also risks which cannot be anticipated.
I give my permission for my child to participate in all camp activities, including those described above. I acknowledge and assume the risks involved in these activities, and for any damages, illness, injury or death . . . resulting from such risks for myself and my child.
(Emphasis by italics added.)
Before deciding whether the agreement adequately “informed” Hamill’s mother under section 13-22-107 regarding prospective negligence claims, we first address the validity of the agreement.
A. Validity of an Exculpatory [*6] Agreement Under Jones
[HN4] We analyze the validity of an exculpatory agreement, including those involving a minor child, by examining four factors: (1) the existence of a duty to the public; (2) the nature of the service performed; (3) whether the contract was fairly entered into; and (4) whether the intention of the parties is expressed in clear and unambiguous language. B & B Livery, Inc. v. Riehl, 960 P.2d 134, 136 (Colo. 1998) (citing Jones, 623 P.2d at 376).
1. First and Second Jones Factors: Duty and Nature of the Services
[HN5] The first Jones factor requires that we determine whether a duty to the public existed in the instant case. Jones, 623 P.2d at 376. Our supreme court has held that businesses engaged in recreational activities that are not practically necessary, such as equine activities, do not perform services implicating a public duty. Chadwick v. Colt Ross Outfitters, Inc., 100 P.3d 465, 469 (Colo. 2004).
[HN6] The second Jones factor examines the nature of the service performed. Jones, 623 P.2d at 376. Here, Cheley provided recreational camping services, including horseback riding. The services were “not a matter of practical necessity for even some members of the public,” because horseback [*7] riding is not “an essential service.” Jones, 623 P.2d at 377-78; see also Chadwick, 100 P.3d at 467; Day v. Snowmass Stables, Inc., 810 F. Supp. 289, 294 (D. Colo. 1993) (recreational equine services offered by the stable were not essential); cf. Stanley, 911 P.2d 705 (residential lease was matter of public interest, and exculpatory clause was void). The General Assembly’s enactment of section 13-21-119, C.R.S. 2010, limiting the civil liability of those involved in equine activities, underscores the fact that horseback riding is a matter of choice rather than necessity. Chadwick, 100 P.3d at 467-68.
2. Third Jones Factor: Fairness
[HN7] A contract is fairly entered into if one party is not so obviously disadvantaged with respect to bargaining power that the resulting contract essentially places him at the mercy of the other party’s negligence. Heil Valley Ranch, Inc., 784 P.2d at 784; accord Mincin v. Vail Holdings, Inc., 308 F.3d 1105, 1111 (10th Cir. 2002) (the second and third prongs of Jones inquire into the respective bargaining power of each party created by the “practical necessity” of the activity). Because horseback riding is not an essential activity, Hamill’s mother was not “at [*8] the mercy” of Cheley’s negligence when signing the agreement. See Chadwick, 100 P.3d at 469; see also Mincin, 308 F.3d at 1111 (because mountain biking was not an essential activity, no inferior bargaining power was identified); Day, 810 F. Supp. at 294 (defendants did not enjoy an unfair bargaining advantage in offering equine services).
By her own admission, Hamill’s mother voluntarily chose to sign the agreement expressly giving permission for Hamill to participate in horseback riding activities. Cf. Wycoff v. Grace Community Church, P.3d, (Colo. App. Nos. 09CA1151, 09CA1200 & 09CA1222, Dec. 9, 2010) (a waiver was insufficient to allow parents to assess the degree of risk involved and extent of possible injuries because it did not describe the activity that resulted in injury).
[HN8] In assessing fairness, courts may also examine whether the services provided could have been obtained elsewhere. See Jones, 623 P.2d at 375 (that a contract is offered on a “take-it-or-leave-it” basis does not, by itself, cause it to be an adhesion contract). The availability of other camps and other providers of horseback riding excursions is highlighted by Hamill’s mother’s deposition testimony [*9] that Hamill previously attended other camps. The record supports the district court’s conclusion that the agreement was entered into fairly.
3. Fourth Jones Factor: Intention of the Parties
Next, Hamill contends that the parties’ intention was not clearly stated in the agreement. Her claim that she only intended to release claims for “things that Cheley would have no control over” does not create a fact issue and is contradicted by the record.
[HN9] In reviewing a contract, we must enforce the plain meaning of the contract terms. USI Properties East, Inc. v. Simpson, 938 P.2d 168, 172 (Colo. 1997); B & B Livery, Inc., 960 P.2d at 136. We must also determine whether its terms are ambiguous, that is, susceptible of more than one reasonable interpretation. B & B Livery, Inc., 960 P.2d at 136. The parties’ disagreement over the meaning does not in and of itself create an ambiguity in the contract. Kuta v. Joint Dist. No. 50(J), 799 P.2d 379, 382 (Colo. 1990).
The language of the agreement here is unambiguous, and we give effect to its plain meaning. USI Properties East, Inc., 938 P.2d at 172; Kuta, 799 P.2d at 382 [HN10] (courts establish the meaning of a contract by examining the entire instrument as [*10] a whole, and not by viewing clauses or phrases in isolation).
Decisions of our supreme court also guide our examination of whether exculpatory agreements clearly evidence the parties’ intention. The Colorado Supreme Court enforced exculpatory agreements in B & B Livery, Inc. and Chadwick, which were similar to the agreement here, concluding that they clearly expressed the parties’ intent.
In B & B Livery, Inc., 960 P.2d 134, the plaintiff sued B & B to recover for injuries sustained when she fell from a rented horse. The plaintiff signed an exculpatory agreement containing the equine act’s mandatory release language warning that an equine professional is not liable for injury or death resulting from inherent risks of equine activities. See § 13-21-119(5)(b), C.R.S. 2010. The release also contained broad exculpatory language, releasing the company from “any liability in the event of any injury or damage of any nature (or perhaps even death) to [her] or anyone else caused by [her] electing to mount and then ride a horse owned or operated by B & B Livery, Inc.” B & B Livery, Inc., 960 P.2d at 135.
The plaintiff argued that the inclusion of this broad language created an ambiguity. Id. The [*11] supreme court disagreed, ruling that the agreement was written in simple and clear terms, it was not inordinately long, and the plaintiff admitted that she “really didn’t read” the release before she signed it, but was aware she was signing a release. Id. at 138 n.5. The supreme court held, based on the language of the agreement, “while we cannot be certain that if . . . [the plaintiff] had read and studied the agreement she would have signed it, there can be no dispute she intended to grant a general release to B & B.” Id. at 138.
In Chadwick, 100 P.3d 465, a participant in a back-country hunting trip sued the organizers of the trip when he was thrown off a mule and injured. Along with the equine act’s release language, the release also contained a “RELEASE FROM ANY LEGAL LIABILTY . . . for any injury or death caused by or resulting from [his] participation in the activities.” 100 P.3d at 468. In upholding the exculpatory agreement, the supreme court held that, while the agreement did not specifically include the word “negligence,” it nonetheless barred the plaintiff’s negligence claims. Id. The court reasoned that the release (1) was not inordinately long; (2) did not contain legal [*12] jargon; and (3) included the statutory release for inherent risks, but also included language releasing the defendant from “any legal liability.” Id. Therefore, the supreme court held the exculpatory language “cannot reasonably be understood as expressing anything other than an intent to release from ‘any’ liability for injuries ’caused by or resulting from'” the plaintiff’s participation in the activity. Id.
[HN11] In accordance with the public policy stated in section 13-21-119(4)(b), C.R.S. 2010, the supreme court held that parties may contract to release activity sponsors “even from negligent conduct, as long as the intent of the parties is clearly expressed in the contract.” Id.; see B & B Livery, Inc., 960 P.2d at 138.
As in Chadwick and B & B Livery, Inc., the agreement here is not inordinately long — three and a half pages. The legal jargon is minimal. Along with the statutory release language of section 13-21-119(5)(b), the agreement identifies many risks associated with camping activities, including horseback riding. The agreement, like that in Chadwick, broadly states an intent to release claims of liability for “any injury,” and like that in B & B Livery, Inc., it includes all degrees [*13] of potential injury, including the “death” of the participant. Hamill and both of her parents signed the agreement on April 27, 2004. Indeed, they also signed agreements containing the same language each of the two previous years.
The agreement covers “inherent and other risks,” noting that “[m]any, but not all, of these risks are inherent,” and stating that it is impossible to delineate a full list of risks, inherent or otherwise. Finally, the agreement repeatedly states that, by signing, Hamill’s mother agreed to release prospective claims against Cheley for “any legal liability,” “any injury,” and “any claim.” (Emphasis added by italics.) The agreement sufficiently placed Hamill’s mother on notice that the “[e]quipment used . . . may break, fail or malfunction” and that “counselors . . . may misjudge . . . circumstances.” The breadth of the release persuades us that the parties intended to disclaim legal liability for negligence claims. Indeed, misjudging a situation can amount to negligence. See Heil Valley Ranch, Inc., 784 P.2d at 781-82 [HN12] (valid exculpatory agreement need not invariably contain the word “negligence”).
To hold, as Hamill now argues, that the release did not provide [*14] greater protection than the release from liability of inherent risks provided by the equine act, section 13-21-119, would render large portions of the agreement meaningless. Heil Valley Ranch, Inc., 784 P.2d at 785 [HN13] (it is unreasonable to interpret an exculpatory agreement for an equine provider in such a way as to provide virtually no protection for the provider and render the release essentially meaningless); Chadwick, 100 P.3d at 469 (interpreting release provisions to be contingent upon satisfactory fulfillment by the provider of contractual obligations would render the release essentially meaningless). An agreement with such plain and unambiguous terms will not fail because one of the parties, in hindsight, now claims to have misunderstood the scope of that agreement — to govern only conduct outside of Cheley’s control — based on ambiguities not readily apparent within the four corners of the agreement.
Because the agreement did not implicate a public duty, did not involve an essential service, was fairly entered into, and it plainly expressed the intent to release prospective negligence claims, we hold that the agreement is valid.
B. Informed Consent Under Section 13-22-107
We next [*15] examine Hamill’s claim that her mother’s consent to release prospective negligence claims was not “informed,” as required by section 13-22-107, because she did not understand the scope of the agreement.
In 2002, the Colorado Supreme Court held that it was against public policy for parents to prospectively waive liability on behalf of minor children. Cooper v. Aspen Skiing Co., 48 P.3d 1229 (Colo. 2002). The following year, the General Assembly superseded Cooper by enacting [HN14] section 13-22-107(3), C.R.S. 2010, which allows parents to “release or waive the child’s prospective claim for negligence.” The statute declares “that parents have a fundamental right to make decisions on behalf of their children, including deciding whether the children should participate in risky activities.” Wycoff , P.3d at , 2010 Colo. App. LEXIS 1832 at *5; see § 13-22-107(1)(a)(I)-(V). The statute states that “[s]o long as the [parent’s] decision is voluntary and informed, the decision should be given the same dignity as decisions regarding schooling, medical treatment, and religious education.” § 13-22-107(1)(a)(V) (emphasis added). However, the statute does not allow a parent to waive a child’s prospective claim for “willful and wanton, [*16] . . . reckless, . . . [or] grossly negligent” acts or omissions. § 13-22-107(4), C.R.S. 2010; Wycoff, P.3d at , 2010 Colo. App. LEXIS 1832 at *6.
Relying on the “informed” language of the statute, Hamill asserts that Cheley’s failure to identify the possibility that she might fall from a horse in the manner she did invalidates her mother’s consent.
We assume that the General Assembly was aware of the Jones test when it enacted section 13-22-107(1)(a)(V), Vaughan v. McMinn, 945 P.2d 404, 408 (Colo. 1997), but required something more for the waiver of a minor’s prospective negligence claims. Wycoff, P.3d at , 2010 Colo. App. LEXIS 1832 at *46 (concluding that the statutory requirement to “inform” parents under section 13-22-107(1)(a)(V), requires something more than meeting the Jones factors). The General Assembly required that the consent to waiver by a parent be “voluntary and informed.” Wycoff, P.3d at , 2010 Colo. App. LEXIS 1832 at *6; Vigil v. Franklin, 103 P.3d 322, 327 (Colo. 2004); Boles v. Sun Ergoline, Inc., 223 P.3d 724, 725 (Colo. 2010) (noting that the supreme court invalidated an exculpatory agreement without regard to the Jones factors in Cooper, 48 P.3d at 1236). 2 A parent’s decision is informed when the parent has sufficient information to assess [*17] the potential degree of risks involved, and the extent of possible injury. Wycoff, P.3d at , 2010 Colo. App. LEXIS 1832 at *11; see also Black’s Law Dictionary 346 (9th ed. 2009) (defining “informed consent” as “agreement to allow something to happen, made with full knowledge of the risks involved and the alternatives”).
2 In Boles, our supreme court addressed the effectiveness of exculpatory agreements with regard to strict products liability. The supreme court cited Cooper for the proposition that the court may invalidate such agreements based on public policy considerations, without regard to the Jones test. However, we do not read Boles as invalidating the Jones test.
In Wycoff, a minor was injured while being pulled behind an ATV on an inner tube over a frozen lake. The mother did not know her child would engage in the activity. The exculpatory agreement the mother signed in advance made no reference to the activity. Wycoff, P.3d at , 2010 Colo. App. LEXIS 1832 at *10. Thus, the mother was unable to assess the risks, or the degree of possible injury, before signing the release. Id. Accordingly, a majority of the division in Wycoff found that release legally insufficient to bar the daughter’s personal injury claims. Id. The instant case [*18] is unlike Wycoff.
1. Degree of Risk
In contrast to Wycoff, the undisputed facts in the record show that Hamill’s mother knew the activities Cheley offered. Hamill had attended Cheley and ridden the camp horses for two years before the accident. The agreement clearly indicated that horseback riding was an activity available to campers. The agreement described many of the risks associated with horseback riding at camp, and notified Hamill’s mother that it was impossible to list all risks. See, e.g., Mallett v. Pirkey, 171 Colo. 271, 285, 466 P.2d 466, 473 (1970) (recognizing that while it is impossible for a physician to advise a patient of all conceivable risks, disclosure of substantial medical risks associated with surgical decision yields valid informed consent).
The agreement included language that informed Hamill’s mother that the equipment used by Cheley could fail and that the wranglers might “misjudge” situations. Both of these possibilities envision forms of negligence. As discussed above, the agreement itself directly contradicts Hamill’s mother’s objectively unreasonable interpretation of the contract that prospective negligence claims were not waived. See Crum v. April Corp., 62 P.3d 1039, 1041 (Colo. App. 2002) [*19] [HN15] (contracts generally will be interpreted to impose objectively reasonable standards, unless the contract involves matters of fancy or taste).
Hamill’s mother testified at her deposition that she voluntarily signed the release after having “skimmed” it. She had signed the same agreement in 2002 and 2003 and agreed that, by signing the waiver, she understood that she was accepting certain risks of injury to her child. See Rasmussen v. Freehling, 159 Colo. 414, 417, 412 P.2d 217, 219 (1966) [HN16] (if a person signs a contract without reading it, she is barred from claiming she is not bound by what it says); Day, 810 F. Supp. at 294 (a party signing a contract without reading it cannot deny knowledge of its contents, and is bound by what it says). She never contacted Cheley to discuss the release form, and had no questions about the language of the release form when she signed it. Hamill’s mother further agreed that “when you sign a document, you understand you’re agreeing to the terms in that document.” See B & B Livery, Inc., 960 P.2d at 141 (plaintiff admitted she had signed other releases in the past and was familiar with the fact that some activities required releases). Hamill’s mother admitted [*20] that the first time she had read through the agreement “thoroughly” was in her attorney’s office on June 2, 2009, well after the accident. Hamill’s mother’s signature communicated to Cheley that she had read and understood the terms of the contract and agreed to be bound by them.
That Hamill’s mother may not have contemplated the precise mechanics of her daughter’s fall does not invalidate the release and does not create a genuine issue of material fact. She knew her daughter would be riding horses and she was advised that there were risks, known and unknown, associated with the activity. Indeed, Hamill’s mother acknowledged in her deposition testimony that when horseback riding, there is “a risk of a child being thrown or falling off a horse.” Hamill’s argument that her mother did not give informed consent, despite her signature on the agreement and the language in the agreement indicating the contrary, is not persuasive and does not create a genuine issue of material fact. As a matter of law, the agreement sufficiently informed Hamill’s mother about the risks involved in horseback riding.
2. Extent of Injury
The broad release language in the agreement waiving “any claims of liability,” [*21] for “any injury,” even “death,” evidences that Hamill’s mother was informed that she was waving Hamill’s prospective claims, including negligence, and had sufficient information to assess the extent of possible injuries to Hamill. At her deposition, Hamill’s mother testified as follows:
Attorney: And, you know, you knew that someone such as Christopher Reeve had been tragically injured falling off a horse?
Ms. Hamill: Yes.
Attorney: Did you personally know Mr. Reeve?
Ms. Hamill: Yes.
Attorney: And so you were aware that there were significant risks associated with horseback riding?
Ms. Hamill: Yes.
Attorney: And you were aware that your daughter was going to be doing a significant amount of horseback riding?
Ms. Hamill: Yes.
The agreement did not need to include an exhaustive list of particularized injury scenarios to be effective.
Our review of the entire record leads us to conclude that there are no genuine issues of material fact. Hamill’s mother had more than sufficient information to allow her to assess the extent of injury possible in horseback riding, and to make an “informed” decision before signing the release. See Black’s Law Dictionary 346 (definition of informed consent).
We conclude [*22] that the agreement adequately disclosed the extent of potential injuries. Moreover, because the agreement was fairly entered into and the language clearly and unambiguously presents no genuine issue of material fact as to whether Hamill’s mother was informed of the agreement’s intent to release “all claims,” including prospective negligence claims, the district court did not err in granting summary judgment for Cheley.
IV. Public Policy
Hamill next argues that public policy considerations render the agreement invalid. According to Hamill, the General Assembly’s post-Cooper enactment of section 13-22-107 is in derogation of the common law, and, as such, the agreement must be strictly construed against Cheley. While we construe the agreement against Cheley because it is the party seeking to limit its liability, Heil Valley Ranch, 784 P.2d at 784, we cannot invalidate the agreement for public policy reasons.
[HN17] The General Assembly is the branch of government charged with implementing public policies. Crawford Rehabilitation Services, Inc. v. Weissman, 938 P.2d 540, 553 (Colo. 1997). The judiciary’s role is to recognize and enforce such implementation. Id. By enacting section 13-22-107(1)(b), [*23] the General Assembly expressly superseded Cooper, 48 P.3d 1229, and empowered parents to weigh the risks and benefits of their children’s activities. Appellate courts have a fundamental responsibility to “interpret statutes in a way that gives effect to the General Assembly’s intent in enacting that particular statute.” Carlson v. Ferris, 85 P.3d 504, 508 (Colo. 2003); accord People v. Luther, 58 P.3d 1013, 1015 (Colo. 2002). The General Assembly has the authority to abrogate the common law, as it did in enacting section 13-22-107(1)(b), which directly superseded Cooper, 48 P.3d 1229. See Vaughan, 945 P.2d at 408 (if the legislature wishes to abrogate rights otherwise available under the common law, it must manifest its intent either expressly or by clear implication).
The governing statute promotes children’s involvement in horseback riding and approves the informed release of prospective negligence claims. Thus, Hamill’s public policy argument is unavailing.
V. Gross Negligence
Finally, Hamill contends genuine issues of material fact exist regarding her gross negligence claim. We disagree.
Both parties concede that [HN18] exculpatory agreements are not a bar to civil liability for gross negligence. [*24] Jones, 623 P.2d at 376; Forman v. Brown, 944 P.2d 559, 564 (Colo. App. 1996). Gross negligence is willful and wanton conduct, that is, action committed recklessly, with conscious disregard for the safety of others. Forman, 944 P.2d at 564. Whether a defendant’s conduct is purposeful or reckless is ordinarily a question of fact; however, “if the record is devoid of sufficient evidence to raise a factual issue, then the question may be resolved by the court as a matter of law.” Id.
The record shows that a Cheley wrangler checked Hamill’s saddle two to three times before the ride. Hamill’s deposition testimony indicates that a wrangler assisted in saddling her horse. Consistent with Cheley’s standard procedure, the wrangler checked the saddle again before giving the camper permission to mount the horse. Hamill testified at deposition that once she was mounted, a Cheley wrangler asked her to dismount so the wrangler could, again, adjust the saddle and stirrups. Thus, the uncontradicted deposition testimony is that the saddle was properly cinched when the ride started and that the wranglers exercised care in making sure it was done appropriately. A Cheley wrangler on foot then led the riders [*25] on a path toward a riding ring while another wrangler followed. The wrangler leading the group stopped to check for traffic before allowing the campers and their horses to walk across the road to the ring. Hamill rode approximately 100 yards from where her saddle was last checked before she fell off the horse.
While Hamill asserts that the shape of the horse and its claimed propensity to bloat its stomach made saddle slippage more likely, she did not demonstrate that, before her accident, simply tightening the girth would not address the issue. There is no evidence that Cheley’s wrangler was “willfully” incompetent, purposefully caused the saddle to slip, or recklessly disregarded the appropriate way to tack the horse. Hamill’s mother testified that she thought “Cheley has the utmost care in what they do, but mistakes happen.” Under these circumstances, we perceive no genuine issue of material fact. Hence, the district court was correct in dismissing the gross negligence claim on summary judgment. 3
3 Because we find that the agreement barred Hamill’s negligence claims, we do not need to address, as the district court did, whether saddle slippage is an inherent risk of horseback riding [*26] that implicates the equine act.
The judgment is affirmed.
JUDGE CASEBOLT and JUDGE LOEB concur.
Allison v. Charter Rivers Hospital, Inc, 334 S.C. 611; 514 S.E.2d 601; 1999 S.C. App. LEXIS 43
Posted: April 4, 2011 Filed under: Assumption of the Risk, Legal Case, South Carolina | Tags: assumption of the risk, challenge course, Elements, Hospital, Ropes course Leave a commentTo Read an Analysis of this case see Assumption of the risk is used to defeat a claim for injuries on a ropes course.
Allison v. Charter Rivers Hospital, Inc, 334 S.C. 611; 514 S.E.2d 601; 1999 S.C. App. LEXIS 43
Margaret H. Allison, Appellant, v. Charter Rivers Hospital, Inc., Respondent.
Opinion No. 2965
Court of Appeals of South Carolina
334 S.C. 611; 514 S.E.2d 601; 1999 S.C. App. LEXIS 43
February 9, 1999, Submitted
March 15, 1999, Filed
Prior History: [***1] Appeal From Lexington County. William P. Keesley, Circuit Court Judge.
Disposition: Affirmed.
Counsel: Robert J. Thomas and Robert P. Wood, both of Rogers, Townsend & Thomas, of Columbia, for appellant.
Monteith P. Todd, of Sowell, Todd, Laffitte, Beard & Watson, of Columbia, for respondent.
Judges: Hearn, J. Huff and Stilwell, JJ., concur.
Opinion By: Hearn
Opinion: [*612] [**602]
Hearn, J: Margaret Allison brought this action against Charter Rivers Hospital, Inc. for injuries she allegedly sustained while participating in a ropes course n1 as part of her treatment at Charter. The trial court denied Allison’s motion to strike Charter’s defense of assumption of risk as a total bar to her recovery and presented the issue to the jury. The jury returned a [*613] general verdict in favor of Charter. Allison appeals. We affirm. n2
– – – – – – – – – – – – – – Footnotes – – – – – – – – – – – – – – –
n1 A “ropes course” is an activity used to build trust and self-confidence. In the activity involved in this case, the participants walked across a rope strung between trees while holding onto an overhead wire. While one participant crosses the rope, four others follow on the ground, acting as spotters to catch the participant if he or she falls. [***2]
n2 We decide this case without oral argument pursuant to Rule 215, SCACR.
– – – – – – – – – – – – End Footnotes- – – – – – – – – – – – – –
Facts
Allison entered Charter in April of 1992 for treatment of her addiction to prescriptive medication. During the years preceding her admission, she had led a very inactive lifestyle.Five days after she entered Charter, she learned she was scheduled to participate in a ropes course. Allison inquired about the ropes course from Katherine McCall, who was in charge of the activity. Katherine explained the course involved walking on a rope between three trees and that the activity would help Allison to build trust. Allison expressed to Katherine her reservations about doing anything physical because of her [**603] lack of past physical activity. Allison also asked several patients about the ropes course. A woman in her seventies and a younger girl with back problems told Allison that they chose not to participate in the course. After collecting this information, Allison decided to participate in the course.
At the beginning of the activity, Allison and the other participants circled around Katherine. Katherine asked them [***3] to raise their hands and pledge to at least attempt the activity. The group warmed up with a game similar to tag. As soon as she started to run, Allison fell on her left knee. She immediately told Katherine about her injury. Katherine instructed her to sit out the remainder of the tag game, which lasted around three or four minutes. The group then proceeded to the ropes course. While walking to the course, Allison again expressed her reservations about participating in the activity. Katherine asked her to at least try and assured her that if she fell, the group would catch her.
According to Allison, the purpose of the ropes course was to build trust and self-confidence. The object of the exercise was for the group to catch the participant as she fell, thereby building the participant’s trust in the group.
Allison explained that a participant was to walk backwards on a rope strung [*614] between trees while holding onto a wire from above. The bottom rope was approximately two and a half feet from the ground at the base trees but sagged and swayed in the middle. She stated the participants were instructed to let go of the wire from above if they fell. Four members of the group, acting as spotters, [***4] were to follow Allison to catch her if she fell.
Allison watched all the other participants and waited until last to try the tension traverse herself. She saw a male patient fall and scrape his shin. When it was her turn, the group lifted her up onto the rope, and she caught hold of the top wire. She testified she was about four feet from the tree when she fell.
The group was not able to break her fall, and she landed on her right knee.
Katherine and some of the participants tried to life her, but Allison passed out from the pain. She was taken by ambulance to the emergency room at Lexington Medical Center.
Allison filed a complaint against Charter in October of 1993. Charter asserted as defenses a general denial of negligence, assumption of risk, and contributory negligence. At the close of the evidence, Allison moved to strike the defense of assumption of risk. She argued that because of the South Carolina Supreme Court’s decision abolishing contributory negligence as a complete bar to recovery, n3 the doctrine of assumption of risk was narrowly limited and did not apply to her case. In the alternative, she argued that if the doctrine of assumption of risk applied, there was no [***5] evidence in the record to support the defense. The trial court denied the motion. The jury returned a general verdict in favor of Charter.
– – – – – – – – – – – – – – Footnotes – – – – – – – – – – – – – – –
n3 The South Carolina Supreme Court abrogated the doctrine of contributory negligence in favor of comparative negligence for all causes of action arising on or after July 1, 1991. Nelson v. Concrete Supply Co., 303 S.C. 243, 399 S.E.2d 783 (1991). This cause of action arose in 1992. In response to Allison’s motion to strike, Charter withdrew the defense of contributory negligence at the trial.
– – – – – – – – – – – – End Footnotes- – – – – – – – – – – – – –
DISCUSSION
Allison argues the defense of assumption of risk was not available to Charter as a complete defense to her action. [*615] She relies on this court’s decision in Davenport v. Cotton Hope Plantation Horizontal Property Regime, 325 S.C. 507, 482 S.E.2d 569 (Ct. App. 1997), aff’d as modified, 333 S.C. 71, 508 S.E.2d 565 (1998). In Davenport, we held “assumption of risk is no longer a complete defense to an injured person’s negligence claim. Assumption of risk is [***6] to be treated as another facet of comparative negligence rather than as an absolute bar to recovery.” Davenport, 325 S.C. at 516, 482 S.E.2d at 574. The South Carolina Supreme Court recently affirmed this holding and abolished assumption of risk as a bar to absolute recovery. Davenport, 333 S.C. 71, 508 S.E.2d 565 (1998). The court held “that a plaintiff is not barred from recovery by the doctrine of assumption of risk unless the degree of fault arising therefrom is greater than the negligence [**604] of the defendant.” 333 S.C. at 87, 508 S.E.2d at 573-4.
The supreme court, however, limited its ruling to apply only to Davenport and to all causes of action arising or accruing after November 8, 1998, the date of the supreme court’s opinion. The court held: “Thus, except for this case, if a cause of action arose or accrued prior to our decision today, it will be governed by the common law form of assumption of risk, if applicable, as it existed under South Carolina case law before this opinion.” Davenport, 333 S.C. at 87-88, 508 S.E.2d at 574. In view of the supreme court’s decision to limit the application of its holding in Davenport, we hold the trial judge [***7] did not err in refusing to strike the defense of assumption of risk as a complete bar to Allison’s action.
Allison next asserts there was no evidence in the record to support the defense of assumption of risk. We disagree.
The defense of assumption of risk is generally a question of fact for the jury. Baxley v. Rosenblum, 303 S.C. 340, 347, 400 S.E.2d 502, 507 (Ct. App. 1991). Allison’s motion to strike the defense of assumption of risk was essentially a motion for a directed verdict on the issue. When ruling on a motion for a directed verdict, the trial judge must view the evidence in the light most favorable to the party opposing the motion. Moore v. Levitre, 294 S.C. 453, 454-5, 365 S.E.2d 730, 730 (1988); Baxley, 303 S.C. at 346, 400. N.E.2d at 506. If the evidence supports more than one reasonable inference with [*616] respect to a claim or defense, the judge must deny the motion and submit the case to the jury. Moore, 294 S.C. at 455, 365 S.E.2d at 730; Baxley, 303 S.C. at 346, 400. N.E.2d at 506. This court may only reverse the denial of a motion for directed verdict when there is no evidence to support the ruling below. Creech v. South Carolina Wildlife & Marine [***8] Resources Dep’t, 328 S.C. 24, 28-9, 491 S.E.2d 571, 573 (1997).
Under prior case law, the defense of assumption of risk required four elements: “(1) the plaintiff must have knowledge of the facts constituting a dangerous condition; (2) the plaintiff must know the condition is dangerous; (3) the plaintiff must appreciate the nature and extent of the danger; and (4) the plaintiff must voluntarily expose himself to the danger.” Davenport, 333 S.C. at 78-79, 508 S.E.2d at 569; see also Senn v. Sun Printing Co., 295 S.C. 169, 173, 367 S.E.2d 456, 458 (Ct. App. 1988).
The ropes course instructor and several patients explained the ropes course to Allison. Allison was aware that two patients had elected not to participate in the course because of their physical condition. She was also aware the object of the activity was for the participants to be caught by their fellow participants as they fell. Furthermore, before attempting the tension traverse, Allison observed the other participants’ attempts, including that of a man who skinned his shin and required medical attention.
We find the record contains sufficient evidence of the elements of assumption of risk to create [***9] a jury issue.
Affirmed.
Huff and Stilwell, JJ., concur.
Johnson v. Recreational Equipment, Inc., 2011 Wash. App. LEXIS 351
Posted: March 21, 2011 Filed under: Cycling, Legal Case, Washington | Tags: bicycle, Carbon Fiber, Cycling, Defect, Defective Product, Front Fork, Products Liability Leave a commentTo Read an Analysis of this decision see: Combination of a Products Liability statute, an Expert Witness Report that was just not direct enough and odd facts holds a retailer liable as manufacture for product defect.
Johnson v. Recreational Equipment, Inc., 2011 Wash. App. LEXIS 351
Monika Johnson, Respondent, v. Recreational Equipment, Inc., Petitioner.
No. 65463-2-I
Court of Appeals of Washington, Division One
2011 Wash. App. LEXIS 351
January 6, 2011, Oral Argument
February 7, 2011, Filed
PRIOR HISTORY: [*1]
Appeal from King County Superior Court. Docket No: 09-2-14346-3. Judgment or order under review. Date filed: 05/10/2010. Judge signing: Honorable Steven C Gonzalez.
DISPOSITION: Affirmed.
SUMMARY:
WASHINGTON OFFICIAL REPORTS SUMMARY Nature of Action: Action for damages for injuries sustained while riding a bicycle. The plaintiff brought the action as a product liability claim against the seller of the bicycle. The plaintiff alleged that her injuries were caused by a defect in the carbon fiber front fork of the bicycle. Both the bicycle and the carbon fiber fork, although not manufactured by the defendant, were marketed under the defendant’s brand name.
Nature of Action: Action for damages for injuries sustained while riding a bicycle. The plaintiff brought the action as a product liability claim against the seller of the bicycle. The plaintiff alleged that her injuries were caused by a defect in the carbon fiber front fork of the bicycle. Both the bicycle and the carbon fiber fork, although not manufactured by the defendant, were marketed under the defendant’s brand name.
Superior Court: The Superior Court for King County, No. 09-2-14346-3, Steven C. Gonzalez, J., on May 10, 2010, denied the defendant’s motion to be permitted to seek to have the jury allocate fault to the manufacturer of the carbon fiber fork and granted the plaintiff’s motion for summary judgment on the issue of strict liability.
Court of Appeals: Holding that the defendant’s statutory vicarious liability for the manufacturing defect precludes a right to have fault allocated to the manufacturer and that the factual averments in the record were sufficient for the trial court to rule on the issue of strict liability as a matter of law, the court affirms the trial court’s rulings.
HEADNOTES WASHINGTON OFFICIAL REPORTS HEADNOTES
[1] Statutes — Construction — Review — Standard of Review. Questions of statutory interpretation are reviewed de novo.
[2] Statutes — Construction — Legislative Intent — In General. A court’s primary duty in interpreting a statute is to implement legislative intent.
[3] Statutes — Construction — Unambiguous Language — Statutory Language — In General. The meaning of an unambiguous statute is derived from the statute’s plain language.
[4] Statutes — Construction — Superfluous Provisions. A statute must be construed so that no provision is rendered meaningless or superfluous.
[5] Products Liability — Defect — Seller Liability — Own Brand Product — Statutory Provisions — Nature of Liability — Vicarious Liability. RCW 7.72.040(2)(e) holds a product seller liable for a manufacturing defect in a product marketed under the product sellers’s own trade name or brand name even though the manufacturer necessarily is the entity that actually caused the defect. The statute creates a form of vicarious liability that enables a claimant injured by a defectively manufactured product to recover fully from the product seller where the seller branded the product as its own.
[6] Statutes — Construction — Meaningful Interpretation — In General. Because a court assumes that the legislature does not engage in meaningless acts, a statute should not be construed as if the legislature has.
[7] Statutes — Repeal — By Implication — Disfavored Status. Implied repeals of statutes are disfavored; courts have a duty to interpret statutes so as to give them effect.
[8] Products Liability — Defect — Seller Liability — Own Brand Product — Allocation of Fault — To Manufacturer — In General. A product seller that is subject to vicarious liability for a manufacturing defect in a product under RCW 7.72.040(2)(e) because the product is marketed under the product sellers’s own trade name or brand name does not have a right to an allocation of fault to the manufacturer on the same manufacturing defect claim. This rule is not inconsistent with the law of comparative fault as set forth in chapter 4.22 RCW because RCW 7.72.040(2)(e) provides that the seller’s proportionate amount of damages is the full amount of damages, in which case no apportionment of fault is necessary to ensure that the seller pays only its share of damages.
[9] Products Liability — Defect — Seller Liability — Own Brand Product — Allocation of Fault — Private Contract. The rule of RCW 7.72.040(2)(e) that a product seller can be vicariously liable for a manufacturing defect in a product marketed under the product seller’s own trade name or brand name suggests a legislative intent to leave to the marketplace the means of allocating risk between commercial entities. The Washington Product Liability Act (ch. 7.72 RCW) presupposes a contractual relationship between the product seller and the manufacturer, with or without an intermediary supplier, and, rather than legislatively imposing a means of risk allocation, assumes that sophisticated commercial parties will contract to allocate risk between themselves.
[10] Judgment — Summary Judgment — Burden on Moving Party — Absence of Factual Issue. In a summary judgment proceeding, the party moving for summary judgment has the burden of demonstrating that there is no genuine issue as to any material fact.
[11] Judgment — Summary Judgment — Determination — Single Conclusion From Evidence. Summary judgment is appropriate if reasonable persons could reach only one conclusion from the facts submitted.
[12] Judgment — Summary Judgment — Issues of Fact — Material Fact — What Constitutes. For purposes of a summary judgment proceeding, a material fact is a fact on which the outcome of the litigation depends, in whole or in part.
[13] Judgment — Summary Judgment — Affidavits — Sufficiency — Evidentiary Facts. An affidavit submitted in response to a motion for summary judgment does not raise a genuine issue of fact unless it sets forth facts that are evidentiary in nature, i.e., information as to what took place–an act, an incident, a reality–as distinguished from supposition or opinion. Ultimate facts, conclusions of fact, and conclusory statements of fact or legal conclusions are insufficient to raise a question of fact.
[14] Products Liability — Defect — Strict Liability — Manufacturing Defect — Deviation From Manufacturer’s Specifications or Standards — Proof — Expert Testimony — Sufficiency. In a strict liability product liability action alleging that a product was not reasonably safe in construction, where the manufacturing defect is such that no conceivable performance standard would call for the product to be manufactured that way, expert testimony that such defect caused the product’s failure can be sufficient to establish that the product deviated in some material way from the manufacturer’s design specifications or performance standards, or deviated in some material way from otherwise identical units of the same product line, within the meaning of RCW 7.72.030(2)(a). Direct evidence of the manufacturer’s design specifications or performance standards is not required in this situation.
[15] Judgment — Summary Judgment — Burden on Nonmoving Party — Averment of Specific Facts — Speculation. A party opposing a motion for summary judgment cannot rely on speculation and conjecture to raise a genuine issue of material fact.
[16] Trial — Bifurcation of Issues — Review — Standard of Review. A trial court’s decision to order separate trials is reviewed for abuse of discretion.
[17] Products Liability — Defect — Seller Liability — Own Brand Product — Contribution — Third Party Action — Against Manufacturer — Bifurcation of Trial. In a product liability action alleging that a product seller is vicariously liable for a manufacturing defect in a product marketed under the product seller’s own trade name or brand name, the trial court may properly rule that any contribution claim by the seller against the product’s manufacturer must be tried separately because joining the manufacturer as a third party defendant would delay and prejudice the plaintiff’s claim against the seller. The trial court may properly bifurcate the claims despite negative consequences for the seller’s contribution rights.
COUNSEL: V.L. Woolston and Paul S. Graves (of Perkins Coie LLP), for petitioner.
Robert L. Christie, Jason M. Rosen, and Thomas P. Miller (of Christie Law Group PLLC), for respondent.
JUDGES: AUTHOR: Stephen J. Dwyer, C.J. We concur: Michael S. Spearman, J., C. Kenneth Grosse, J.
OPINION BY: Stephen J. Dwyer
OPINION
¶1 Dwyer, C.J. — [HN1] The Washington product liability act (WPLA), chapter 7.72 RCW, sets forth a statutory form of vicarious liability whereby a product seller assumes the liability of a manufacturer where a product is marketed under the seller’s brand name. Because permitting the product seller to attribute fault to the actual manufacturer would abrogate this provision of the WPLA, principles of comparative fault do not apply, notwithstanding the possibility that statutory contribution may thereby be precluded. Such a result is not in contravention of our state’s statutory comparative fault system, as commercial entities [*2] can themselves contract to allocate liability where the WPLA’s vicarious liability provision applies.
¶2 Accordingly, we affirm the trial court’s ruling that Recreational Equipment, Inc. (REI) is not entitled to seek to allocate fault to the manufacturer of the defective product that REI branded as its own. We also conclude that the trial court erred neither by finding REI strictly liable for the injuries caused by the defective product nor by ruling that any third party claim by REI against the manufacturer would be severed for trial.
I
¶3 In November 2007, Monika Johnson was riding her bicycle along a downtown Seattle sidewalk when the front carbon fiber fork of the bicycle, which attaches the bicycle’s front wheel to its frame, “sheared from the steer tube suddenly and without warning.” Clerk’s Papers (CP) at 57. The fork and front wheel detached from the frame of the bicycle, and Johnson fell face first onto the sidewalk, sustaining serious injuries.
¶4 Johnson brought an action against REI pursuant to the WPLA, alleging that her injuries were caused by a defect in the carbon fiber fork. Both the bicycle and the carbon fiber fork, although not manufactured by REI, were marketed under REI’s [*3] brand name, Novara. Johnson had purchased the Novara brand bicycle from REI in 2002. In 2005, she had taken the bicycle to REI for repairs following a collision with a car door. The Novara carbon fiber fork that fractured in November 2007 was installed on the bicycle during those 2005 repairs.
¶5 Johnson did not name the manufacturer of the fork, Aprebic Industry Company, Ltd., as a defendant in the action. REI filed a motion for partial summary judgment, seeking a ruling that it was entitled to ask the jury to allocate fault to Aprebic pursuant to Washington’s comparative fault system, set forth in chapter 4.22 RCW, or, in the alternative, requesting leave to file a third party complaint against Aprebic. In response, Johnson filed a motion for partial summary judgment, asserting that REI was strictly liable for her injuries.
¶6 In support of her summary judgment motion, Johnson submitted to the trial court the declaration of Gerald Zaminski, a professional engineer, who examined the bicycle and the carbon fiber fork and destructively tested the fork. He found that the section of the fork where the fracture occurred “was manufactured using a relatively small number of [carbon fiber] layers.” [*4] CP at 106. He concluded that “[t]he small number of carbon fiber layers and their orientation interface resulted in the nucleation and propagation of cracking” and that this cracking “led to the catastrophic fracture and failure of the fork.” CP at 106. According to Zaminski, the thickness of the carbon fiber layering where the fracture occurred was “just a fraction of the thickness of the carbon fiber layup elsewhere in the fork and steerer tube.” CP at 106. He stated that the carbon fiber layers also “displayed voids, gaps, separations, and kinks, which are all indicative of defective manufacturing.” CP at 106. Zaminski also observed that the carbon fiber layers at the point of the fracture were “starved of epoxy,” making them “more susceptible to failure.” CP at 107. Zaminski declared that “[t]he orientation and makeup of the carbon fiber layers can only occur during manufacturing; they are not defects that can occur after the product has been manufactured.” CP at 107.
¶7 In response, REI submitted the declaration of David Mitchell, also a professional engineer, who inspected the bicycle and carbon fiber fork. Mitchell asserted that “there is presently insufficient information to rule [*5] out the accumulation of prior damage to the front fork as the cause of ultimate fork separation.” CP at 178. He stated that “the nature of the fracture was not determined” and that additional laboratory testing should be conducted, including loading an examplar fork to determine its breaking strength. CP at 177. He also noted that the bicycle itself was “clearly a high mileage vehicle” that displayed “substantial wear and tear.” CP at 176. Mitchell further suggested that a 2006 collision involving the bicycle, in which the rear wheel was damaged, could have contributed to the fork’s fracture. He opined that “[i]f an element of that crash involved the front fork without creating visible damage, then it could be considered an initiating event for the fracture that serves as the basis for this law suit.” CP at 178.
¶8 The trial court denied REI’s motion to be permitted to seek to have the jury allocate fault to Aprebic and granted Johnson’s motion for summary judgment on the issue of strict liability. The trial court ruled that “[d]efendant REI has the liability of a ‘manufacturer’ as set forth in RCW 7.72.040(2)(e) and is strictly liable as a matter of law for all damages and injuries that [*6] plaintiff sustained.” 1 CP at 196. The trial court further determined that the fact that Aprebic is the actual manufacturer of the fork has no bearing on REI’s liability to Johnson, as “REI has the same liability as the actual manufacturer.” CP at 196. The trial court concluded that Johnson could look to REI exclusively for compensation for her injuries. Although the trial court denied REI’s request to attribute fault to Aprebic, it did grant to REI leave to join Aprebic as a third party defendant. However, the trial court noted that if REI did so, the court would “require separate trials under CR 20(b) to prevent delay and prejudice to [Johnson].” CP at 198.
1 The trial court noted that its ruling would not “preclude REI from asserting that [Johnson] was contributorily negligent if any facts to support this are developed.” CP at 196.
¶9 REI sought discretionary review of the trial court’s rulings. A commissioner of this court granted discretionary review of the trial court’s rulings on three issues: (1) whether comparative fault principles apply to Johnson’s claims, (2) whether REI is strictly liable for Johnson’s injuries, and (3) whether any third party claim brought by REI against Aprebic [*7] should be severed for trial.
II
¶10 REI first contends that the statutory comparative fault system adopted by our legislature in 1986 demands that it be permitted to ask the jury to allocate fault to Aprebic for the fork’s manufacturing defect. Because the WPLA expressly provides that REI, by selling the defective product under its own brand name, assumes the liability of the manufacturer, we disagree.
[1] ¶11 [HN2] Questions of statutory interpretation are reviewed de novo. Happy Bunch, LLC v. Grandview N., LLC, 142 Wn. App. 81, 88, 173 P.3d 959 (2007). Whether the WPLA permits a product seller that brands a defective product as its own to attribute fault to the actual manufacturer is a question of statutory interpretation; thus, we review the question de novo.
[2-4] ¶12 [HN3] Our primary duty in interpreting a statute is to discern and implement legislative intent. Dep’t of Ecology v. Campbell & Gwinn, LLC, 146 Wn.2d 1, 9, 43 P.3d 4 (2002). Where a statute is unambiguous, we derive its meaning from the plain language of the statute. Campbell & Gwinn, 146 Wn.2d at 9-10. Moreover, we must construe statutes such that no provision is rendered meaningless or superfluous. Whatcom County v. City of Bellingham, 128 Wn.2d 537, 546, 909 P.2d 1303 (1996).
¶13 [HN4] In [*8] 1981, our legislature codified the law of product liability by enacting the Washington product liability act (WPLA), chapter 7.72 RCW. The WPLA distinguishes between and imposes different standards of liability on manufacturers and product sellers for harm caused by defective products. See RCW 7.72.030, .040. As a general rule, manufacturers of defective products are held to a higher standard of liability, including strict liability where injury is caused by a manufacturing defect or a breach of warranty. RCW 7.72.030(2). 2 In contrast, product sellers are ordinarily liable only for negligence, breach of express warranty, or intentional misrepresentation. RCW 7.72.040(1). In limited circumstances, however, product sellers are subject to “the liability of a manufacturer,” including where “[t]he product was marketed under a trade name or brand name of the product seller.” RCW 7.72.040(2), (2)(e). 3
2 RCW 7.72.030(2) provides, in pertinent part:
[HN5] (2) A product manufacturer is subject to strict liability to a claimant if the claimant’s harm was proximately caused by the fact that the product was not reasonably safe in construction or not reasonably safe because it did not conform to the manufacturer’s [*9] express warranty or to the implied warranties under Title 62A RCW.
(a) A product is not reasonably safe in construction if, when the product left the control of the manufacturer, the product deviated in some material way from the design specifications or performance standards of the manufacturer, or deviated in some material way from otherwise identical units of the same product line.
3 The limited circumstances in which a product seller assumes the liability of a manufacturer are set forth in RCW 7.70.040(2), which provides:
[HN6] (2) A product seller, other than a manufacturer, shall have the liability of a manufacturer to the claimant if:
(a) No solvent manufacturer who would be liable to the claimant is subject to service of process under the laws of the claimant’s domicile or the state of Washington; or
(b) The court determines that it is highly probable that the claimant would be unable to enforce a judgment against any manufacturer; or
(c) The product seller is a controlled subsidiary of a manufacturer, or the manufacturer is a controlled subsidiary of the product seller; or
(d) The product seller provided the plans or specifications for the manufacture or preparation of the product and such [*10] plans or specifications were a proximate cause of the defect in the product; or
(e) The product was marketed under a trade name or brand name of the product seller.
[5-9] ¶14 [HN7] The WPLA explicitly provides that “[a] product seller, other than a manufacturer, [has] the liability of a manufacturer” where “[t]he product was marketed under a trade name or brand name of the product seller.” RCW 7.72.040(2), (2)(e). Although, absent this provision, only a manufacturer could be held liable for a manufacturing defect, RCW 7.72.030(2), our legislature has chosen to hold particular product sellers liable for such acts–despite the fact that the manufacturer of the product is necessarily the entity that actually caused the defect where a product is defectively manufactured.
¶15 Thus, [HN8] by imposing liability on sellers of branded products for manufacturing defects–which, inevitably, are caused by acts of the manufacturer–our legislature created a statutory form of vicarious liability that enables the claimant injured by a defectively manufactured product to recover fully from the product seller where the seller branded the product as its own. See 16 David K. DeWolf & Keller W. Allen, Washington Practice: Tort Law & [*11] Practice, § 3.1, at 116 (3d ed. 2006) (“In contrast to direct liability, which is liability for breach of one’s own duty of care, vicarious liability is liability for the breach of someone else’s duty of care.”). Because a seller of a branded product is vicariously liable for manufacturing defects, permitting REI–the product seller liable as the manufacturer pursuant to RCW 7.72.040(2)(e)–to seek to allocate fault to Aprebic–the actual manufacturer of the defective product–would undermine the statutory scheme of the WPLA.
¶16 REI incorrectly contends that RCW 7.72.040(2)(e), rather than creating a statutory form of vicarious liability, instead merely imposes on sellers of branded products the liability standard to which manufacturers are held. Thus, according to REI, although product sellers are ordinarily liable only for negligence, breach of an express warranty, or intentional misrepresentation, pursuant to RCW 7.72.040(1), sellers of branded products may also be found liable, pursuant to RCW 7.72.040(2)(e), for design and construction defects, inadequate warnings, or breach of an implied warranty–acts for which generally only manufacturers are held liable. See RCW 7.72.030(1), (2). For [*12] this reason, REI argues that it should be permitted to attribute fault to Aprebic. This contention fails for two reasons.
¶17 First, [HN9] had our legislature merely imposed on sellers of branded products the liability standard of manufacturers, as REI contends that it did, the legislature would have engaged in a meaningless act. RCW 7.72.030(2) provides that “[a] product manufacturer is subject to strict liability to a claimant if the claimant’s harm was proximately caused by the fact that the product was not reasonably safe in construction.” The statute defines a manufacturer as “a product seller who designs, produces, makes, fabricates, constructs, or remanufactures the relevant product … before its sale to a user or consumer.” RCW 7.72.010(2). Here, REI, because it does not design, make, fabricate, construct, or remanufacture bicycle forks, could never be found by a trier of fact to have acted as an actual manufacturer. Thus, it could never be proved to have acted in such a way so as to expose it to direct liability as a manufacturer. Indeed, were it otherwise, the legislature would not have needed to enact RCW 7.72.040(2)(e)–by acting as a manufacturer, REI would be subject to direct [*13] manufacturer liability pursuant to RCW 7.72.030(2), rendering RCW 7.72.040(2)(e) superfluous. We will not assume that the legislature, by enacting RCW 7.72.040(2)(e), engaged in a meaningless act. See JJR Inc. v. City of Seattle, 126 Wn.2d 1, 10, 891 P.2d 720 (1995) (“When interpreting statutes, the court must assume that the Legislature does not engage in meaningless acts.”).
¶18 Similarly, [HN10] construing RCW 7.72.040(2)(e) such that a product seller could seek to allocate fault to a manufacturer would render the provision itself meaningless, as the product seller could always avoid the allocation of any fault to it simply by attributing fault to the actual manufacturer. See Whatcom County, 128 Wn.2d. at 546 (noting that statutes must be construed such that all language is given effect and no provision in rendered meaningless or superfluous). Certainly, as a factual matter, where a manufacturing defect is at issue, the manufacturer–not the product seller–actually caused the defect. Thus, were allocation of fault principles to apply, the manufacturer would necessarily be 100 percent responsible for the defectively manufactured product. Also necessarily, the product seller would avoid all such [*14] liability. Such a result would contravene our legislature’s clear intent that a product seller that brands a product as its own assumes the liability of the manufacturer. 4
4 The legislative history of the WPLA includes a statement that [HN11] where the nonmanufacturing product seller “adopts the product as its own, [it] has, in a sense, waived [its] right to immunity and should be subject[ed] to a manufacturer’s liability.” Senate Journal, 47th Leg., Reg. Sess., at 625 (Wash. 1981).
¶19 [HN12] Although RCW 7.72.040(2)(e) does not permit the product seller to seek to allocate fault to the manufacturer, this provision is not inconsistent with Washington’s comparative fault system, set forth in chapter 4.22 RCW. REI argues to the contrary, contending that our legislature, by adopting comparative fault as the general rule for tort liability, endorsed the principle that “every entity responsible for committing a tort should be liable to the plaintiff based on its own individual share of the total fault, no more and no less.” Br. of Pet’r at 16. This overly broad assertion assumes that, by enacting RCW 4.22.070, our legislature eliminated vicarious liability, which it expressly did not do. Indeed, this specific [*15] statute itself explicitly retains principles of common law vicarious liability, in that it provides that “[a] party shall be responsible for the fault of another … where both were acting in concert or when a person was acting as an agent or servant of the party.” RCW 4.22.070(1)(a). Similarly, the WPLA provision at issue here is a statutory imposition of vicarious liability wherein the seller of a branded product is held liable for the actions of the manufacturer, notwithstanding that the product seller did not actually manufacture the defective product.
¶20 Permitting REI to attribute fault to Aprebic would effectively abrogate RCW 7.72.040(2)(e), as the product seller would never assume the liability that the legislature intended the seller to bear where the seller brands the product as its own. [HN13] “Authority is legion that implied repeals of statutes are disfavored and courts have a duty to interpret statutes so as to give them effect.” Bellevue Sch. Dist. No. 405 v. Brazier Constr. Co., 103 Wn.2d 111, 122, 691 P.2d 178 (1984). Because the WPLA and our state’s statutory comparative fault system can be reconciled, we will not hold that our legislature intended, by passing the tort reform [*16] act of 1986, to impliedly repeal RCW 7.72.040(2)(e). See Bellevue Sch. Dist., 103 Wn.2d at 123 (“Repeals by implication are not favored and will not be found to exist where earlier and later statutes may logically stand side by side and be held valid.”). We are loathe to find a silent repeal, and we decline to do so here.
¶21 Moreover, [HN14] the fact that a product seller such as REI is not permitted to seek to allocate fault to the product manufacturer does not suggest an oversight by the legislature. Rather, it suggests a legislative intent to leave to the marketplace the means of allocating risk between commercial entities. The WPLA presupposes a contractual relationship between the product seller and the manufacturer, with or without an intermediary supplier, and, rather than legislatively imposing a means of risk allocation, assumes that sophisticated commercial parties will contract to allocate risk between themselves. Were we to hold that the WPLA permits REI to attribute fault to Aprebic, we would not only be acting in contradiction to the legislature’s clear intent–we would also be upsetting three decades of reliance on a statute that allows product sellers and manufacturers to themselves [*17] determine how best to allocate risk.
¶22 REI incorrectly asserts that Washington case law requires that it be permitted to attribute fault to Aprebic. REI cites Hiner v. Bridgestone/Firestone, Inc., 138 Wn.2d 248, 978 P.2d 505 (1999), for the proposition that comparative fault principles apply in all product liability cases. The plaintiff therein, a motorist injured in a collision, brought a product liability suit against the manufacturer of the snow tires that had been installed only on the vehicle’s front wheels. Hiner, 138 Wn.2d at 251. The snow tire manufacturer raised the affirmative defense of entity liability, “arguing that liability should be shared by the installer of the studded snow tires, the manufacturer of the Goodyear tires on the rear wheels, and the manufacturer of the Hyundai automobile.” Hiner, 138 Wn.2d at 259.
¶23 The Court of Appeals affirmed the trial court’s dismissal of the affirmative defense, reasoning that the comparative fault statute permitted a defendant manufacturer to apportion fault only to those entities liable to the plaintiff pursuant to the WPLA. Hiner v. Bridgestone/Firestone, Inc., 91 Wn. App. 722, 736, 959 P.2d 1158 (1998). Our Supreme Court reversed, [*18] holding that “[t]he plain language of the contributory fault statute does not limit apportioning fault only to other manufacturers and product sellers in a product liability case.” Hiner, 138 Wn.2d at 264. The court based its reasoning on the broad definition of “fault” set forth in Washington’s comparative fault statute, which states that “fault” includes “acts or omissions … that subject a person to strict tort liability or liability on a product liability claim.” RCW 4.22.015.
¶24 The Hiner decision is inapposite. In Hiner, the manufacturer of the snow tires sought to attribute fault to other entities that, if found to be at fault, would be liable pursuant to theories of liability different than the theory of liability pursuant to which the manufacturer was liable. Here, REI contends that it should be permitted to attribute fault to another entity that, if found to be at fault, would be liable pursuant to precisely the same theory of liability–“the liability of a manufacturer”–as that of REI. REI, which pursuant to the WPLA has the liability of the manufacturer, seeks to attribute fault to Aprebic based on the theory that Aprebic is the actual manufacturer. Because REI is vicariously [*19] liable for Aprebic’s acts, the basis of both entities’ alleged liability is the same. Put another way, in Hiner the fault sought to be allocated was not the same fault. In Hiner, the fault sought to be allocated resulted from different acts; here, the fault sought to be allocated arises from the same acts. Hiner is not inconsistent with the decision we reach today. 5
5 Similarly, the decision in Lundberg v. All-Pure Chemical Co., 55 Wn. App. 181, 777 P.2d 15 (1989), does not apply here. The court therein determined that the jury could be instructed on the plaintiff’s alleged comparative negligence in a product liability action, notwithstanding that the plaintiff’s claim alleged strict liability. Lundberg, 55 Wn. App. at 186-87. Finding that the legislature intended the comparative fault doctrine to apply to all actions based on fault, including strict liability and product liability claims, the court held that there is “no reason to distinguish between negligence and strict liability actions for purposes of instructing a jury on the plaintiff’s comparative fault.” Lundberg, 55 Wn. App. at 186. Johnson’s comparative fault is not at issue. Rather, the issue here is whether fault can be [*20] attributed to another entity where that entity is liable on the same basis and based on the same facts as is the defendant seeking to attribute fault and where permitting the defendant to attribute fault would contravene the purpose of the relevant statute.
¶25 Moreover, [HN15] the purpose of the comparative fault statute is “that fault be apportioned and … an entity be required to pay that entity’s proportionate share of damages only.” Washburn v. Beatt Equip. Co., 120 Wn.2d 246, 294, 840 P.2d 860 (1992). Pursuant to RCW 7.72.040(2)(e), REI’s proportionate share of damages is the full amount of damages. Thus, unlike in Hiner, no apportionment of fault is necessary to ensure that the defendant pays only its share of damages.
¶26 Applicable case law further undermines REI’s assertion that it should be permitted to attribute fault to Aprebic. In Farmers Insurance Co. of Washington v. Waxman Industries, Inc., 132 Wn. App. 142, 148, 130 P.3d 874 (2006), we reversed vacation of a default judgment holding Waxman strictly liable as the “manufacturer” of a defective water supply line that was sold under the Waxman trade name. Waxman’s motion to vacate stated that “defects in hoses ‘often’ can be attributed [*21] to component parts of the hose manufactured by some other entity.” Waxman, 132 Wn. App. at 146. Waxman further contended that it did not manufacture the allegedly defective water supply line. Waxman, 132 Wn. App. at 146.
¶27 We held that Waxman’s evidence was insufficient to support a meritorious defense as required for vacation of a default judgment. Waxman, 132 Wn. App. at 145. Given that [HN16] a product seller that brands a product under its trade name is subject to the liability of the manufacturer pursuant to RCW 7.72.040(2)(e), we concluded that “[t]he materials submitted by Waxman do not explain how Waxman could avoid a finding of liability simply by proving that some other entity actually manufactured the supply line.” Waxman, 132 Wn. App. at 147. Furthermore, we determined that “whatever right of indemnity and contribution Waxman may be able to establish against other entities is not a defense to Waxman’s own liability.” Waxman, 132 Wn. App. at 148. The principles we set forth in Waxman support the conclusion that REI may not seek to allocate fault to Aprebic, the manufacturer, where it assumed the liability of the manufacturer.
¶28 [HN17] RCW 7.72.040(2)(e) creates a statutory form of vicarious [*22] liability whereby the seller of a branded product assumes the liability of the manufacturer. Because permitting such a product seller to seek to allocate fault to the actual manufacturer pursuant to comparative fault principles would undermine our legislature’s intent in enacting this statutory provision, the trial court did not err by concluding that REI could not seek to allocate fault to Aprebic.
III
¶29 REI next contends that the trial court erred by concluding that REI is strictly liable for Johnson’s injuries. Specifically, REI asserts that the trial court erred by resolving issues of material fact in favor of Johnson and by finding that the alleged manufacturing defects were the cause of her injuries. We disagree.
[10, 11] ¶30 [HN18] “In reviewing a summary judgment order, the appellate court evaluates the matter de novo, performing the same inquiry as the trial court.” Snohomish County v. Rugg, 115 Wn. App. 218, 224, 61 P.3d 1184 (2002). Summary judgment is appropriate only where “there is no genuine issue as to any material fact and … the moving party is entitled to a judgment as a matter of law.” CR 56(c). The moving party bears the burden of demonstrating that there is no genuine issue as to any [*23] material fact. Lamon v. McDonnell Douglas Corp., 91 Wn.2d 345, 349, 588 P.2d 1346 (1979). All reasonable inferences must be considered in the light most favorable to the nonmoving party, and summary judgment may be granted only if a reasonable person could reach but one conclusion. Rugg, 115 Wn. App. at 224.
[12, 13] ¶31 [HN19] A material fact ” ‘is a fact upon which the outcome of the litigation depends, in whole or in part.’ ” Lamon, 91 Wn.2d at 349 (quoting Morris v. McNicol, 83 Wn.2d 491, 494-95, 519 P.2d 7 (1974)). An affidavit submitted in support of or in response to a motion for summary judgment “does not raise a genuine issue of fact unless it sets forth facts evidentiary in nature, i.e., information as to what took place, an act, an incident, a reality as distinguished from supposition or opinion.” Rugg, 115 Wn. App. at 224. “[U]ltimate facts, conclusions of fact, conclusory statements of fact or legal conclusions are insufficient to raise a question of fact.” Rugg, 115 Wn. App. at 224.
[14] ¶32 The WPLA provides that “[a] product manufacturer is subject to strict liability to a claimant if the claimant’s harm was proximately caused by the fact that the product was not reasonably safe in construction.” RCW 7.72.030(2).
A [*24] product is not reasonably safe in construction if, when the product left the control of the manufacturer, the product deviated in some material way from the design specifications or performance standards of the manufacturer, or deviated in some material way from otherwise identical units of the same product line.
RCW 7.72.030(2)(a).
¶33 REI first contends that, because the statutory definition of a manufacturing defect requires that the product deviate from the manufacturer’s design specifications or performance standards, Johnson cannot prove that the bicycle’s fork contained a manufacturing defect without submitting to the court direct evidence of Aprebic’s design specifications or performance standards. REI asserts that “there is no evidence in the record to establish that the fork at issue deviated from Aprebic’s design standards.” Br. of Pet’r at 34. To the contrary, Johnson submitted to the trial court evidence–in the form of Zaminski’s declaration–that the fork fractured due to insufficient carbon fiber layering. This evidence itself supports the conclusion that the fork “deviated in some material way from the design specifications or performance standards of the manufacturer,” RCW 7.72.030(2)(a), [*25] as no conceivable performance standard would call for the manufacture of a carbon fiber fork that fractures as Johnson’s did. Although [HN20] on summary judgment all reasonable inferences must be drawn in favor of the nonmoving party, Rugg, 115 Wn. App. at 224, no reasonable inference can be drawn that a carbon fiber fork that fractures in this way performed in accordance with any manufacturer’s performance standards. 6
6 Moreover, [HN21] the purpose of holding sellers of branded products vicariously liable for manufacturing defects would be undermined were we to require the claimant to conduct discovery from the manufacturer itself, particularly where the manufacturer is not a party to the action. Where such evidence is not necessary to demonstrate that the product was, indeed, defective, the trial court did not err by not requiring Johnson to produce direct evidence of Aprebic’s performance standards.
¶34 REI next contends that genuine issues of material fact regarding causation remain, thus precluding summary judgment. However, despite REI’s assertion that the bicycle displayed “substantial wear and tear,” REI does not establish how the fact that the bicycle was a “high mileage vehicle” explains the [*26] fracture of the carbon fiber fork. See CP at 176. Thus, the alleged “wear and tear” on the bicycle is not a ” ‘fact upon which the outcome of the litigation depends.’ ” See Lamon, 91 Wn.2d at 349 (quoting Morris, 83 Wn.2d at 494-95).
[15] ¶35 REI further speculates that the 2006 collision, which resulted in damage to the back tire of the bicycle, may have been a contributing cause of the fracture of the fork. However, REI’s evidence does not explain how that collision could have contributed to the fracture. Moreover, REI’s evidence refutes neither Johnson’s expert’s assertion that the insufficient carbon fiber layering is a defect that can occur only during manufacture nor the same expert’s conclusion that this particular defect caused the fork to fracture. Rather, REI conjectures that “[i]f an element of that crash involved the front fork without creating visible damage, then it could be considered an initiating event for the fracture that serves as the basis for this law suit.” CP at 178. REI cannot rely on speculation and conjecture to raise a genuine issue of material fact. See Rugg, 115 Wn. App. at 224.
¶36 The trial court did not erroneously resolve issues of material fact in favor of Johnson. [*27] To the contrary, its grant of summary judgment was appropriate because REI failed to raise any genuine issue of material fact as to its liability for Johnson’s injuries.
IV
¶37 Finally, REI contends that the trial court erred by ruling that any claim brought by REI against Aprebic would be bifurcated for trial from Johnson’s claim. We disagree.
[16, 17] ¶38 [HN22] A trial court’s decision to order separate trials is reviewed for an abuse of discretion. Maki v. Aluminum Bldg. Prods., 73 Wn.2d 23, 25, 436 P.2d 186 (1968) (“The right to order separate trials is a matter of discretion vested in the trial court by the rules.”). Civil Rule 20(b) permits the trial court to order separate trials to prevent delay or prejudice where a party would be delayed or “put to expense by the inclusion of a party against whom he asserts no claim and who asserts no claim against him.” Here, the trial court acted well within its discretion in finding that permitting REI to join Aprebic as a third party defendant would delay and prejudice the adjudication of Johnson’s claim and, thus, ruling that any claim brought by REI against Aprebic should be bifurcated for trial.
¶39 Notwithstanding that the trial court acted within its discretion [*28] pursuant to CR 20(b), REI contends that the trial court’s bifurcation ruling was erroneous because the court “appeared to be unaware of the impact such bifurcation would have on the viability of REI’s contribution claim.” Br. of Pet’r at 41-42. REI and Aprebic cannot be jointly and severally liable for Johnson’s injuries, as required to establish a statutory right to contribution, unless a judgment is entered against both parties in Johnson’s suit. See [HN23] RCW 4.22.040 (noting that a right to contribution exists where the parties are jointly and severally liable); RCW 4.22.070(1)(b) (providing that only those defendants against whom judgment is entered may be jointly and severally liable for the claimant’s injuries). Thus, REI contends that the trial court abused its discretion by misapplying the law in issuing a ruling that would compromise REI’s right to seek contribution from Aprebic.
¶40 However, notwithstanding that REI may be precluded from seeking statutory contribution from Aprebic, the trial court did not abuse its discretion by misapplying the law. Indeed, [HN24] this is not the first time that a court has upheld a proper application of the law despite negative consequences for a party’s [*29] contribution rights. In Kottler v. State, 136 Wn.2d 437, 439, 963 P.2d 834 (1998), our Supreme Court held that a settling party in a civil tort action is not entitled to seek contribution from another alleged tortfeasor where joint and several liability did not arise pursuant to the exceptions set forth in RCW 4.22.070. Because no judgment had been entered against the settling defendant, and, thus, joint and several liability did not arise, RCW 4.22.040 precluded the settling party from seeking contribution. See Kottler, 136 Wn.2d at 439; RCW 4.22.040 (“A right of contribution exists between or among two or more persons who are jointly and severally liable upon the same indivisible claim for the same injury.”).
¶41 Justice Talmadge wrote separately “to urge legislative attention toward the anomalous result this case requires.” Kottler, 136 Wn.2d at 450 (Talmadge, J., concurring). Although he “agree[d] with the majority’s resolution because the statutory language and our case law compel its result,” Kottler, 136 Wn.2d at 450, Justice Talmadge remarked that it appeared that proper application of the 1981 and 1986 tort reform acts effected a result that contradicted the legislature’s intent [*30] in enacting those very statutes. Kottler, 136 Wn.2d at 450. Thus, “[t]o more effectively execute [the legislature’s] intent,” Justice Talmadge implored the legislature to “address[ ] and correct[ ] this unfortunate situation in the tort law.” Kottler, 136 Wn.2d at 453. Notwithstanding Justice Talmadge’s appeal to the legislature, it has amended neither the 1981 nor the 1986 act to address this “anomalous result.”
¶42 Here, as in Kottler, a result dictated by proper application of the law leads to an “anomalous result” in that REI’s contribution rights are compromised. Here, also as in Kottler, the existence of such an anomaly suggests neither a misunderstanding nor a misapplication of the law. Rather, the trial court here properly understood and applied the law, notwithstanding that REI’s right to seek contribution may have been thereby compromised.
¶43 The trial court did not abuse its discretion by ruling that any claim by REI against Aprebic would be bifurcated for trial from Johnson’s claim. 7
7 REI additionally contends that the trial court erred by denying REI’s request to conduct additional discovery prior to the summary judgment ruling. Because discretionary review was not granted on this [*31] issue, we will not reach it. City of Bothell v. Barnhart, 156 Wn. App. 531, 538 n.2, 234 P.3d 264 (2010) (noting that, [HN25] pursuant to RAP 2.3(e), the appellate court may specify the issue or issues as to which discretionary review is granted), review granted, No. 84907-2 (Wash. Nov. 3, 2010).
¶44 Affirmed.
Grosse and Spearman, JJ., cncur.
Wrong release for the activity almost sinks YMCA
Posted: March 14, 2011 Filed under: California, Release (pre-injury contract not to sue), Summer Camp | Tags: Adventure travel, Baseball Bat, Child, Day Camp, James H. Moss, JimMoss, Minor, Outdoor recreation, Parental Responsibility, Parental Rights, Rock climbing, YMCA 1 CommentA release must apply to the activity and the person who you want to make sure cannot sue you.
McGowan et al v. West End YMCA, 2002 Cal. App. Unpub. LEXIS 3018
In this case, a mother signed her son up to attend a day camp sponsored by the YMCA. While attending the day camp, the child was accidentally hit in the head by another child with a baseball bat. The mother sued for the child’s injuries.
The YMCA argued that the mother had signed a release, and therefore, the YMCA should be dismissed. The mother argued that the release only applied to her, not her child because the release was unclear as to who was being released in the document. (The mother argued the release was required for her to walk around the YMCA to sign her son up for the camp.)
In this case, the YMCA used its general release for people on the premises of the YMCA as a fitness facility, for its day camp. The release did not indicate a parent would be signing for the child nor did the release look to the issues the child would encounter, only an adult using the YMCA or any other gym.
The mother argued because the release did not identify her son, the injured party, as who the release applied to the release only applied to her while she was on the premises. Nothing in the document indicated that the mother was signing a release on behalf of her son.
Like most releases used in gyms and fitness centers it is written for the adult signing up to use the gym.
Under the law, “An agreement exculpating the drafter from liability for his or her own future negligence must clearly and explicitly express that this is the intent of the parties.”
What saved the YMCA was a technicality in the language of the release. To go to the day camp, the child attending must be a member of the YMCA. The mother of the injured child was not a member of the YMCA. However, her son was. Because the release referred to the YMCA member as the person giving up their right to sue, the court held the release applied to the child not the mother. This language allowed the court to find for the YMCA.
So?
Releases are not documents you can merely find on the internet or put together based on language that sounds good. Think about the contract you used to purchase your house. It was a 10 to 20 page document used to buy something of value greater than $100,000 or so.
If someone is suing you for several million dollars do you want to rely on a document that you put together or worse stole from the business down the street.
Here again you have to make sure your release is properly written. You may have several different releases for different parties or activities. I commonly suggest that people use different paper to print the different release forms. Here the YMCA should have had a general release for use of its fitness and other facilities and a release for its day camp. One could have been printed on white paper and the other on green. Even better, put the release online and save paper.
Your release must identify who is protected by the release and who the release is going to stop from suing. In many cases, one parent will sign on behalf of a child. However, in some states, unless the language is clear, that parent may not be preventing the other parent from suing. Identify every person who can sue in the release as well as every person who cannot be sued. When in doubt, have both parents sign the release.
For information on other states where a parent can sign away a minor’s right to sue see: States that allow a parent to sign away a minor’s right to sue–Updated 2011
What do you think? Leave a comment.
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McGowan et al v. West End YMCA, 2002 Cal. App. Unpub. LEXIS 3018
Posted: March 14, 2011 Filed under: California, Legal Case, Minors, Youth, Children, Release (pre-injury contract not to sue), Summer Camp Leave a commentMcGowan et al v. West End YMCA, 2002 Cal. App. Unpub. LEXIS 3018
Denitra McGowan et al., Plaintiffs and Appellants, v. West End YMCA, Defendant and Respondent.
E029450
COURT OF APPEAL OF CALIFORNIA, FOURTH APPELLATE DISTRICT, DIVISION TWO
2002 Cal. App. Unpub. LEXIS 3018
March 15, 2002, Filed
NOTICE: [*1] NOT TO BE PUBLISHED IN OFFICIAL REPORTS CALIFORNIA RULES OF COURT, RULE 977(a), PROHIBITS COURTS AND PARTIES FROM CITING OR RELYING ON OPINIONS NOT CERTIFIED FOR PUBLICATION OR ORDERED PUBLISHED, EXCEPT AS SPECIFIED BY RULE 977(B). THIS OPINION HAS NOT BEEN CERTIFIED FOR PUBLICATION OR ORDERED PUBLISHED FOR PURPOSES OF RULE 977.
PRIOR HISTORY: APPEAL from the Superior Court of San Bernardino County. Super.Ct.No. RCV 42286. Ben T. Kayashima, Judge.
DISPOSITION: Affirmed.
CORE TERMS: summary judgment, extrinsic evidence, ambiguous, uncontradicted, matter of law, undersigned, parol evidence, inadvertently omitted, membership, executing, daycare, lawsuit, notice, physical injuries, financial assistance, indemnity agreement, unenforceable, unambiguous, negligently, undisputed, enrollment, pertained, signature, enrolling, absurdity, enrolled, construe, supplied, pertain, signing
COUNSEL: Ritchie, Klinkert & McCallion, James E. Klinkert, James McCallion and Ralph Harrison for Plaintiffs and Appellants.
Allie & Schuster, James P. Allie and Coreen R. Walson for Defendant and Respondent.
JUDGES: Gaut, J. We concur: Ramirez, P.J., Hollenhorst, J.
OPINION BY: Gaut
OPINION
1. Introduction
Plaintiffs Denitra McGowan and Deshon McGowan, a minor, (plaintiffs) appeal judgment entered against them following summary judgment entered in favor of defendant West End YMCA (the YMCA).
Denitra McGowan enrolled her son, Deshon McGowan, in the YMCA’s summer camp daycare program. In the process of doing so, she signed various documents, including a release of liability. Deshon was injured while participating [*2] in the program. Plaintiffs filed a personal injury lawsuit against the YMCA. The trial court granted the YMCA’s motion for summary judgment on the ground plaintiffs’ lawsuit was barred by the release.
Ms. McGowan contends the trial court erred in granting summary judgment because the release only applied to physical injuries she sustained while on the YMCA premises, and did not pertain to Deshon since the release makes no reference to him and does not state that she signed the release on his behalf. She further argues that the trial court should not have considered parol evidence in determining the release applied to Deshon because the release was unambiguous. Even if it was ambiguous, plaintiffs argue, the court should have denied summary judgment because there was a triable issue as to whether the parties to the release intended it to apply to Deshon and an ambiguous release is unenforceable.
We conclude the trial court properly granted summary judgment. The release indicated it pertained to YMCA members. Since Ms. McGowan was not a YMCA member, but signed the release, it was unclear as to whom the release affected. The court appropriately considered parol evidence to [*3] determine this matter. Uncontradicted extrinsic evidence established that Deshon was the subject of the release and Ms. McGowan executed the release on his behalf. Accordingly, we affirm summary judgment in favor of the YMCA.
2. Facts and Procedural Background
The following facts are undisputed. Ms. McGowan submitted an application for YMCA financial assistance to assist her in paying for Deshon to attend the summer daycare program. In May 1998, the YMCA notified Ms. McGowan that it had approved her request for financial assistance.
On June 10, 1998, Ms. McGowan filled out and signed various YMCA forms, including a membership application for Deshon to become a member and a registration form for summer day camp. When Ms. McGowan returned the completed forms on June 12, 1998, a staff member requested Ms. McGowan to execute two additional forms, which included a general policies statement regarding YMCA members and a form release and waiver of liability and indemnity agreement. Ms. McGowan signed and returned the two forms.
On August 19, 1998, while Deshon was at summer day camp, another child accidentally struck Deshon in the head with a baseball bat. In their lawsuit, [*4] plaintiffs alleged the YMCA negligently operated the daycare center and negligently supervised Deshon and the other children enrolled in the program.
Ms. McGowan acknowledged during her deposition that her signature was on the release, but claimed she did not remember signing it. She admitted that she was not a YMCA member. Ms. McGowan further stated that she was aware she was enrolling Deshon as a YMCA member and this was done for the purpose of having Deshon attend the program while she worked.
The YMCA filed a summary judgment motion based on the theory plaintiffs’ action was barred by the release of liability. Plaintiffs filed opposition arguing that the release did not pertain to Deshon since the release did not state it applied to Deshon or that is was signed on his behalf.
The trial court granted the YMCA’s summary judgment motion on the ground it was undisputed Ms. McGowan signed the release on behalf of Deshon and therefore plaintiffs’ action was barred.
3. Discussion
Plaintiffs argue the release did not bar their action because the release does not state that Ms. McGowan signed the release on Deshon’s behalf. The release states that “THE UNDERSIGNED [*5] HEREBY RELEASES, WAIVES, DISCHARGES AND COVENANTS NOT TO SUE the YMCA.” Plaintiffs claim that the release was limited to a waiver of liability as to physical injuries sustained by Ms. McGowan while on the YMCA premises.
The goal of contractual interpretation is “to give effect to the mutual intention of the parties as it existed at the time of contracting . . . .” 1 When, as here, “a contract is reduced to writing, the intention of the parties is to be ascertained from the writing alone, if possible . . . .” 2 Accordingly, if the language of the contract is plain and unambiguous, and is not reasonably susceptible of a different meaning, no extrinsic evidence is admissible to prove that the parties intended a different interpretation. 3 Under those circumstances, the proper interpretation is purely a matter of law, 4 which may be resolved by summary judgment. 5
1 Civil Code section 1636. Unless otherwise noted, all statutory references are to the Civil Code.
2 Section 1639.
3 Pacific Gas & E. Co. v. G. W. Thomas Drayage etc. Co. (1968) 69 Cal.2d 33, 37-40, 69 Cal. Rptr. 561, 442 P.2d 641.
[*6]
4 Parsons v. Bristol Development Co. (1965) 62 Cal.2d 861, 865, 44 Cal. Rptr. 767, 402 P.2d 839.
5 Niederer v. Ferreira (1987) 189 Cal. App. 3d 1485, 1499, 234 Cal. Rptr. 779.
On the other hand, extrinsic evidence may be admitted and considered if the contract is ambiguous. 6 If extrinsic evidence is admitted but is not in conflict, then the issue remains one of law, even though the uncontradicted extrinsic evidence may give rise to conflicting inferences. 7
6 Pacific Gas & E. Co. v. G. W. Thomas Drayage etc. Co., supra, 69 Cal.2d at page 40; Niederer v. Ferreira, supra, 189 Cal. App. 3d at pages 1499-1500.
7 Garcia v. Truck Ins. Exchange (1984) 36 Cal.3d 426, 439, 204 Cal. Rptr. 435, 682 P.2d 1100; Parsons v. Bristol Development Co., supra, 62 Cal.2d at page 866, footnote 2.
[*7] “When a contract is in any of its terms or provisions ambiguous or uncertain, ‘it is primarily the duty of the trial court to construe it after a full opportunity afforded all the parties in the case to produce evidence of the facts, circumstances and conditions surrounding its execution and the conduct of the parties relative thereto.'” 8
8 Walsh v. Walsh (1941) 18 Cal.2d 439, 443, 116 P.2d 62, quoting Barlow v. Frink (1915) 171 Cal. 165, 172-173, 152 P. 290.
“‘An agreement exculpating the drafter from liability for his or her own future negligence must clearly and explicitly express that this is the intent of the parties.’ [Citation.] But ‘to be effective, a release need not achieve perfection; only on Draftsman’s Olympus is it feasible to combine the elegance of a trust indenture with the brevity of a stop sign.’ [Citation].” 9 Whether a release is ambiguous is a question of law which we review de novo. 10
9 Randas v. YMCA of Metropolitan Los Angeles (1993) 17 Cal.App.4th 158, 162.
[*8]
10 Baker Pacific Corp. v. Suttles (1990) 220 Cal. App. 3d 1148, 1153, 269 Cal. Rptr. 709.
We first consider whether the release is ambiguous. We conclude the release language is clear and explicit as to its terms 11 but unclear as to whose right to sue was waived since Ms. McGowan was not a YMCA member and the release stated it pertained to members.
11 Randas v. YMCA of Metropolitan Los Angeles, supra, 17 Cal.App.4th at page 163.
The first paragraph of the release is entitled “CONDITIONS OF MEMBERSHIP,” and states, among other things, that members must present their membership cards when using the YMCA’s facilities and “As a member of the YMCA you are agreeing to follow the policies, procedures and appropriate behaviors for the safety and comfort of all members and guests.” 12 The release further states, under the heading, “RELEASE AND WAIVER [*9] OF LIABILITY AND INDEMNITY AGREEMENT,” that, as a condition of the “undersigned’s” use of the YMCA facilities or equipment or participation in any way, that the undersigned release the YMCA from all liability in the event the undersigned is physically injured while using the YMCA facilities or equipment. Such language clearly is directed toward members. Therefore the release did not apply to Ms. McGowan.
12 Italics added.
Since the release does not state who was the member affected by the release, we look to the extrinsic evidence. “It has been held repeatedly, that it is not a violation of the parol evidence rule to prove by extrinsic evidence the identity of the parties to an agreement.” 13 “‘Parol evidence is competent to show whom the parties intended should be bound or benefited.'” 14 The uncontradicted extrinsic evidence in this case establishes that the release applied to Deshon.
13 Maulhardt v. Cal. Director of Public Works (1959) 168 Cal. App. 2d 723, 735, 336 P.2d 631; Branch v. Bekins Van and Storage Company (1930) 106 Cal.App. 623, 635, 290 P. 146.
[*10]
14 Maulhardt v. Cal. Director of Public Works, supra, 168 Cal. App. 2d at page 735, quoting Escondido Oil etc. Co. v. Glaser (1904) 144 Cal. 494, 499, 77 P. 1040; Branch Bekins Van and Storage Company, supra, 106 Cal.App. at page 635.
Section 1638 states that “The language of a contract is to govern its interpretation, if the language is clear and explicit, and does not involve an absurdity.” Construing the release as applied to Ms. McGowan rather than Deshon involves an absurdity since Ms. McGowan was not a YMCA member, whereas Deshon was, and Ms. McGowan executed the other enrollment documents at the same time she was either returning or executing other documents on Deshon’s behalf for the purpose of enrolling him in day camp. Since Ms. McGowan was not a YMCA member and the other YMCA enrollment documents indicated they were signed on Deshon’s behalf, it would be absurd to construe the release as applying to Ms. McGowan rather than Deshon.
Thus, while in Hohe v. San Diego Unified School District 15 the court [*11] held the issue of the parties’ intent in executing an ambiguous release was a jury question, here the uncontradicted extrinsic evidence established as a matter of law that the release was executed by Ms. McGowan on Deshon’s behalf and applied to him. It should be obvious to all reasonable persons that language indicating Ms. McGowan was executing the release on Deshon’s behalf was inadvertently omitted from the signature line. 16 “Were we to adopt respondent’s strict interpretation of words we would be subverting the only reasonable interpretation of the instrument as a whole.” 17
15 Hohe v. San Diego Unified Sch. Dist. (1990) 224 Cal. App. 3d 1559, 274 Cal. Rptr. 647.
16 Heidlebaugh v. Miller (1954) 126 Cal. App. 2d 35, 40, 271 P.2d 557.
17 Heidlebaugh v. Miller, supra, 126 Cal. App. 2d at page 40.
In Heidlebaugh v. Miller, 18 the contract in question contained the phrase, “seller may, if [*12] he so desires, but shall not be obliged so to do, sell said property at public or private sale, with or with notice to Purchaser . . . .” 19 The court upheld nonsuit on the ground no notice of the sale was required. 20 The Heidlebaugh court concluded as a matter of law that the parties intended that the contract state “with or without notice,” and that the word, “out,” had been inadvertently omitted from the contract. 21
18 Heidlebaugh v. Miller, supra, 126 Cal. App. 2d 35.
19 Heidlebaugh v. Miller, supra, 126 Cal. App. 2d at page 36.
20 Heidlebaugh v. Miller, supra, 126 Cal. App. 2d at page 41.
21 Heidlebaugh v. Miller, supra, 126 Cal. App. 2d at page 40.
The Heidlebaugh court stated that, “‘Where, by inadvertence, words are plainly omitted from a contract, they may be supplied by construction if the context indicates what they are.'” 22 Such [*13] alteration of the contract is permitted because, “‘The court will if possible give effect to all parts of the instrument and an interpretation which gives a reasonable meaning to all its provisions will be preferred to one which leaves a portion of the writing useless or inexplicable; and if this is impossible an interpretation which gives effect to the main apparent purpose of the contract will be favored. Indeed, in giving effect to the general meaning of a writing, particular words are sometimes wholly disregarded, or supplied, or transposed. . . .'” 23
22 Heidlebaugh v. Miller, supra, 126 Cal. App. 2d at page 38.
23 Heidlebaugh v. Miller, supra, 126 Cal. App. 2d at page 38.
Here, uncontradicted evidence establishes that words indicating Ms. McGowan was signing the release on Deshon’s behalf were inadvertently omitted from the release. “A contract may be explained by reference to the circumstances under which it was made, and the matter [*14] to which it relates.” 24 Accordingly, we conclude as a matter of law the release barred plaintiffs’ action against the YMCA.
24 Section 1647.
Plaintiffs also argue the release is unenforceable because it affects public policy. Plaintiffs did not raise this argument in the trial court and thus it is waived on appeal. 25
25 In re Aaron B. (1996) 46 Cal.App.4th 843, 846.
4. Disposition
The judgment is affirmed. The YMCA is awarded its costs on appeal.
Gaut, J.
We concur:
Ramirez, P.J.
Hollenhorst, J.
Wycoff v. Grace Community Church of the Assemblies of God, 2010 Colo. App. LEXIS 1832
Posted: February 28, 2011 Filed under: Colorado, Legal Case, Minors, Youth, Children, Release (pre-injury contract not to sue) | Tags: ATV, church, Church Group, Exculpatory clause, Intertube, Release Leave a commentWycoff v. Grace Community Church of the Assemblies of God, 2010 Colo. App. LEXIS 1832
Taylor Wycoff, Plaintiff-Appellee and Cross-Appellant, and American Medical Security Life Insurance Company, a Wisconsin insurance company, Intervenor-Appellee and Cross-Appellant, v. Grace Community Church of the Assemblies of God, a Colorado nonprofit corporation, Defendant-Appellant and Cross-Appellee.
Court of Appeals Nos. 09CA1151, 09CA1200 & 09CA1222
COURT OF APPEALS OF COLORADO, DIVISION SIX
2010 Colo. App. LEXIS 1832
December 9, 2010, Decided
NOTICE:
THIS OPINION IS NOT THE FINAL VERSION AND SUBJECT TO REVISION UPON FINAL PUBLICATION
SUBSEQUENT HISTORY: Related proceeding at Wycoff v. Seventh Day Adventist Ass’n of Colo., 2010 Colo. App. LEXIS 1826 (Colo. Ct. App., Dec. 9, 2010)
PRIOR HISTORY: [*1]
Boulder County District Court No. 07CV35. Honorable M. Gwyneth Whalen, Judge.
DISPOSITION: JUDGMENT AFFIRMED IN PART, VACATED IN PART, AND CASE REMANDED WITH DIRECTIONS.
COUNSEL: Wilcox & Ogden, P.C., Ralph Ogden, Denver, Colorado, for Plaintiff-Appellee and Cross-Appellant.
David Lichtenstein, Denver, Colorado, for Intervenor-Appellee and Cross-Appellant.
Cooper & Clough, P.C., Paul D. Cooper, Jeremy L. Swift, Denver, Colorado, for Defendant-Appellant and Cross-Appellee.
JUDGES: Opinion by JUDGE CONNELLY. Carparelli, J., concurs. Furman, J., dissents.
OPINION BY: CONNELLY
OPINION
Plaintiff, Taylor Wycoff, was seriously injured at a winter event held by defendant, Grace Community Church (Grace). Plaintiff and her insurer, intervenor American Medical Security Life Insurance Company (insurer), sued Grace and another defendant. Claims against that other defendant are addressed in Wycoff v. Seventh Day Adventist Ass’n, P.3d , 2010 Colo. App. LEXIS 1826 (Colo. App. Nos. 09CA1034 & 09CA1065, Dec. 9, 2010).
The jury returned verdicts against Grace totaling more than $ 4 million. The court reduced the total to $ 2 million (the limits of Grace’s insurance), awarding some $ 1.775 million to plaintiff and $ 225,000 to insurer. After prejudgment interest and costs, the court [*2] entered judgment of $ 2.6 million for plaintiff and $ 324,000 for insurer. We generally affirm but vacate the judgment, and we order the trial court to enter judgment in the higher amounts unreduced by any insurance limits.
I. Background
Plaintiff was seventeen years old at the time of the accident. Though not a church member, she was one of sixty youths to attend a three-day, two-night event that Grace called “Winterama 2005.”
Grace contracted with Seventh Day Adventist Association of Colorado (SDA) to hold the event at Glacier View Ranch, in Ward, Colorado. Grace paid SDA for rooms, meals, and use of the ranch.
Plaintiff’s father paid Grace $ 40 for plaintiff to attend the event. Grace states that plaintiff did not pay more because it awarded her a “partial scholarship.” Plaintiff and her mother signed Grace’s one-page “Registration and information” form, which Grace contends released the personal injury claims now at issue.
After arriving and checking in at the ranch, plaintiff participated in church-sponsored activities. One activity was riding an inner tube tied to an all-terrain vehicle (ATV) driven around a frozen lake. This activity had been conducted in past years by Grace, and [*3] also by SDA, without incident.
A large boulder was embedded in the lake some thirty-five feet from shore. A Grace chaperone, accompanied by another man, drove the ATV towing youth participants around the frozen lake. Plaintiff got on an inner tube, and the chaperone began towing her. On plaintiff’s second loop around the lake, the Grace chaperone drove the ATV between the boulder and shoreline. Plaintiff’s inner tube, still tied to the ATV, veered off and crashed into the boulder.
The crash broke plaintiff’s back. She was rushed to intensive care and was hospitalized for several weeks. She suffered loss of bowel and bladder control, loss of vaginal sensation, and numbness in both legs making it difficult for her to walk and unable to run, bend, or squat.
II. Enforceability of the Alleged Release
A. Background
The purported release was in a one-page “Registration and information” form. It consisted of the third sentence (emphasis not in the original) in the following paragraph:
I give permission for my child to participate in [Grace’s] Winterama 2005 and all activities associated with it. I further give consent for any medical treatment necessary to be given to my child in case of injury [*4] or sickness. I will not hold Grace Community Church or it’s [sic] participants responsible for any liability which may result from participation. I also agree to come and pick up my child should they not obey camp rules.
The form was the subject of trial testimony after the court denied Grace’s motion for summary judgment. Plaintiff testified that she knew the activities would include riding on an ATV-towed inner tube but that her mother did not know this. The trial court denied Grace’s C.R.C.P. 50 motion for directed verdict at the close of plaintiff’s case-in-chief, ruling that the jury could find either that plaintiff’s mother had not made an informed release or alternatively that Grace had acted in a reckless manner not covered by any release.
Grace did not call plaintiff’s mother to testify in the defense case. At the close of all the evidence, and outside the jury’s presence, the parties discussed whether and how the jury should be instructed on the purported release. The trial court, for reasons not reflected in the record, ruled as a matter of law that the permission slip did not release Grace. It instructed the jury that the purported release was out of the case and should no [*5] longer be considered.
B. Overview of Exculpatory Clauses Affecting Minors
[HN1] The validity of exculpatory clauses purporting to release or waive future negligence claims is governed by four factors set out in Jones v. Dressel, 623 P.2d 370, 376 (Colo. 1981). Usually, the issue turns on the final factor: “whether the intention of the parties is expressed in clear and unambiguous language.” Id.
In 2002, our supreme court held as a matter of public policy that parents cannot prospectively waive liability on behalf of minor children. Cooper v. Aspen Skiing Co., 48 P.3d 1229 (Colo. 2002). The next year, [HN2] the General Assembly superseded Cooper by enacting a statute allowing parents to “release or waive the child’s prospective claim for negligence.” § 13-22-107(3), C.R.S. 2010.
The statute superseding Cooper declared that parents have a fundamental right to make decisions on behalf of their children, including deciding whether the children should participate in risky activities. § 13-22-107(1)(a)(I)-(V), C.R.S. 2010. It added that “[s]o long [*6] as the decision is voluntary and informed, the decision should be given the same dignity as decisions regarding schooling, medical treatment, and religious education.” § 13-22-107(1)(a)(V). But it further provided that the statute does not permit a parent to waive a child’s prospective claim for “willful and wanton, … reckless, … [or] grossly negligent” acts or omissions. § 13-22-107(4).
C. Standard of Review
[HN3] The relevant facts are undisputed, and our review is de novo. See Wolf Ranch, LLC v. City of Colorado Springs, 220 P.3d 559, 563 (Colo. 2009) (de novo review of statutory issues); Jones, 623 P.2d at 376 [HN4] (de novo review of validity of exculpatory clause prospectively releasing liability claims). Thus, while the record does not reflect the trial court’s reasoning, we are able independently to review the form to determine whether it was a legally effective release.
D. Analysis
The statute does not elucidate what is necessary to render a parent’s decision to release a child’s prospective claims “voluntary and informed,” § 13-22-107(1)(a)(V). Grace contends this statutory language simply adopts the Jones standards for adults’ prospective releases of their own claims. We disagree.
The statute [*7] uses language not found in Jones or its progeny. The supreme court in Jones noted that the release there did not “fall within the category of agreements affecting the public interest.” 623 P.2d at 377. The inquiry relevant to this case — “whether the intention of the parties is expressed in clear and unambiguous language,” id. at 376 — does not expressly require that the decision to release one’s own prospective claims be an “informed” one. [HN5] We presume the legislature was aware of case law in this area, see Specialty Restaurants Corp. v. Nelson, 231 P.3d 393, 403-04 (Colo. 2010), and that its use of a new term was intended to have some significance. Thus, the statutory requirement that the parental decision be an “informed” one must mean something more than that, as already required by Jones, the form’s language be sufficiently clear to manifest intent to release liability.
We need not set forth in this case precisely how much information is required for a parental release to satisfy the statute. An “informed” decision — whether involving a legal or medical consent — typically means the “agreement to allow something to happen, [was] made with full knowledge of the risks involved [*8] and the alternatives.” Bryan A. Garner, Black’s Law Dictionary 346 (9th ed. 2009) (defining “informed consent”); cf. People v. Maestas, 199 P.3d 713, 717 & n.9 (Colo. 2009) (“informed consent” for decisions waiving conflict-free counsel); Garhart ex rel. Tinsman v. Columbia/Healthone, L.L.C., 95 P.3d 571, 587 (Colo. 2004) (“informed consent” for medical decisions). In the present context, however, the legislature allowed parental releases “to encourage the affordability and availability of youth activities in this state.” § 13-22-107(1)(a)(VI), C.R.S. 2010. Arguably, this legislative aim could be undercut if courts required the same level of information to release a claim as to consent to a medical procedure.
There is no information in Grace’s one-page registration form describing the event activities, much less their associated risks. Stating that the children would participate in “Winterama 2005 and all activities associated with it” does not indicate what the activities would involve and certainly does not suggest they would include ATV-towed inner-tube excursions around a frozen lake.
We are not persuaded by Grace’s argument that it was denied an opportunity to offer evidence — [*9] in particular, testimony of plaintiff’s mother — that the parental waiver was informed. We will assume for purposes of this case that a facially deficient exculpatory contract could be cured by extrinsic evidence. But cf. Brooks v. Timberline Tours, Inc., 127 F.3d 1273, 1275 n.2 (10th Cir. 1997) (noting “some dispute in the Colorado case law about whether a plaintiff’s experience or lack of experience should be considered when determining the ambiguity of a release”). Even so, the trial court did not preclude Grace from offering any evidence bearing on the validity of the purported release. And it took this issue away from the jury only after the close of all the evidence. Grace thus could have called plaintiff’s mother (whom it had listed as a potential trial witness), but it chose not to do so.
Finally, Grace’s clause does not pass muster even under Jones. [HN6] Such clauses “must be closely scrutinized,” Jones, 623 P.2d at 376, because they are “disfavored.” Chadwick v. Colt Ross Outfitters, Inc., 100 P.3d 465, 467 (Colo. 2004); accord Boles v. Sun Ergoline, Inc., 223 P.3d 724, 726 (Colo. 2010). A release need not contain any magic words to be valid; in particular, it need not specifically [*10] refer to waiver of “negligence” claims. Heil Valley Ranch, Inc. v. Simkin, 784 P.2d 781, 784-85 (Colo. 1989). But, in every Colorado Supreme Court case upholding an exculpatory clause, the clause contained some reference to waiving personal injury claims based on the activity being engaged in. See, e.g., Chadwick, 100 P.3d at 468 (release detailed risks of hunting trip with animals and participant agreed to “‘RELEASE [outfitter] FROM ANY LEGAL LIABILITY … for any injury or death caused by or resulting from” participation in hunt); Heil Valley Ranch, 784 P.2d at 782 (release form stated that riding horse involved inherent risks, and participant “EXPRESSLY ASSUMES SUCH RISK AND WAIVES ANY CLAIM HE SHE MIGHT STATE AGAINST THE STABLES AS A RESULT OF PHYSICAL INJURY INCURRED IN SAID ACTIVITIES”); Jones, 623 P.2d at 372 (skydiving plaintiff released company “from any and all liability, claims, demands or actions or causes of action whatsoever arising out of any damage, loss or injury” resulting from “negligence … or from some other cause”).
Grace’s form made no reference to the relevant activity or to waiving personal injury claims. The operative sentence (the third one in a paragraph) states [*11] only that plaintiff will not hold Grace “responsible for any liability which may result from participation.” Surrounding sentences address other issues: the first gives permission to attend; the second consents to medical treatment; and the fourth agrees to pick up disobedient children.
Grace contends its “waiver included liability for ‘any’ injuries related to ‘all activities’ conducted at Winterama 2005.” But the form does not say this. And nowhere does the form provide parents with information allowing them to assess the degree of risk and the extent of possible injuries from any activity. The form is legally insufficient to release plaintiff’s personal injury claims.
III. Issues Under the Premises Liability Act
Grace contends the court made two errors under the Premises Liability Act, § 13-21-115, C.R.S. 2010. First, Grace denies being a “landowner” covered by the Act. Second, it contends that plaintiff was a “licensee” rather than an “invitee.” Because the facts relevant to these issues are undisputed, our review is de novo. Lakeview Associates, Ltd. v. Maes, 907 P.2d 580, 583-84 (Colo. 1995).
[HN7] The Act provides the sole remedy against landowners for injuries on their property. Vigil v. Franklin, 103 P.3d 322, 328-29 (Colo. 2004). [*12] A landowner’s duties turn on a trial court’s determination of whether the plaintiff was an “invitee,” a “licensee,” or a “trespasser.” § 13-21-115(3) & (4), C.R.S. 2010. The greatest duty is owed to an “invitee”: a landowner must “exercise reasonable care” to protect such a person from dangers of which the landowner knew or should have known. Lombard v. Colorado Outdoor Educ. Center, Inc., 187 P.3d 565, 575 (Colo. 2008) (construing § 13-21-115(3)(c)(I)). In contrast, a “licensee” is owed lesser, and a “trespasser” owed the least, duties. See Vigil, 103 P.3d at 328.
A. Grace was a “Landowner”
[HN8] The Act’s definition of a “landowner” is broader than the term might suggest. See § 13-21-115(1), C.R.S. 2010 (“‘landowner’ includes, without limitation, an authorized agent or a person in possession of real property and a person legally responsible for the condition of real property or for the activities conducted or circumstances existing on real property”). Thus, a “person need not hold title to the property to be considered a ‘landowner.'” Burbach v. Canwest Investments, LLC, 224 P.3d 437, 441 (Colo. App. 2009) (citing Pierson v. Black Canyon Aggregates, Inc., 48 P.3d 1215, 1219 (Colo. 2002)).
It [*13] is not apparent why Grace seeks to avoid landowner status under the Act. The Act, meant to “protect landowners,” § 13-21-115(1.5)(e), C.R.S. 2010 (emphasis added), eliminates common law negligence claims while imposing only a duty of reasonable care toward invitees and even lesser duties toward licensees and trespassers. See Vigil, 103 P.3d at 328-29. If Grace were correct that it was not covered by the Act, it still would have owed plaintiff a duty of reasonable care and could not argue that plaintiff was a mere licensee owed only lesser duties under the Act.
In any event, we have little difficulty concluding that Grace was a landowner as defined by the Act. A landowner includes one “legally responsible … for the activities conducted … on real property.” § 13-21-115(1). This definition, which covers one “who is legally conducting an activity on the property,” Pierson, 48 P.3d at 1221, plainly encompassed Grace. It was clear, from Grace’s reservations agreement and understandings with SDA, that Grace was authorized to conduct (if not principally responsible for conducting) activities involving its group on the ranch property.
Grace’s arguments against this straightforward conclusion [*14] are unpersuasive. Its argument that SDA owned the property fails, because the Act is not limited to property owners. See Burbach, 224 P.3d at 441.
Grace further argues that it was “only present on the property for a short time” and thus “in a much worse position than SDA to know of the conditions of the property, or to know whether a particular activity would be dangerous on the property.” But [HN9] the Act is not limited to those in exclusive possession of land, see Pierson, 48 P.3d at 1220, and the Act expressly contemplates that there may be multiple landowners in a case. See § 13-21-115(4). There accordingly is no need for a binary choice as to which entity, as between Grace and SDA, was better able to protect plaintiff against injury. If Grace in fact had no reason to know of the relevant danger, that could provide a factual defense at trial rather than an exemption from the Act’s coverage.
Grace finally suggests that treating it as a landowner would lead to absurd results because everyone engaged in activities on the ranch, including plaintiff herself, would also be a landowner. The instant appeal does not present any issue regarding who, other than Grace, might have been a landowner. [*15] We note, however, that the Act’s definition of a landowner does not extend to everyone lawfully participating in activities on land; rather, it covers those “legally responsible … for the activities conducted” on land. § 13-21-115(1). It is doubtful that a mere participant such as plaintiff was “legally responsible” for the activities conducted at the ranch. Regardless, we are convinced there is nothing unfair, much less absurd, in applying the Act to Grace — an entity that indisputably was responsible for the ATV activity conducted on the ranch.
B. Plaintiff was an “Invitee” rather than “Licensee”
Grace’s contention that plaintiff was not an “invitee” but was merely a “licensee” affects the duty owed by Grace to plaintiff. If plaintiff was an invitee, then the trial court correctly instructed the jury that Grace had to use reasonable care to protect against dangers of which it knew or reasonably should have known. Lombard, 187 P.3d at 570-71, 575. In contrast, had plaintiff been a mere licensee, Grace’s duties would have been limited to actually known dangers. See Vigil, 103 P.3d at 328. We conclude that plaintiff was an invitee and, therefore, that the trial court correctly instructed [*16] the jury regarding Grace’s obligations toward her.
[HN10] An “invitee” is one who enters or remains on another’s land “to transact business in which the parties are mutually interested or … in response to the landowner’s express or implied representation that the public is requested, expected, or intended to enter or remain.” § 13-21-115(5)(a), C.R.S. 2010. [HN11] A “licensee” is one who enters or remains on another’s land “for the licensee’s own convenience or to advance his own interests, pursuant to the landowner’s permission or consent.” § 13-21-115(5)(b). The statute expressly provides that the latter category “includes a social guest.” Id.
[HN12] The principal distinction between an “invitee” and a “licensee” turns on whether that person’s presence on the land was affirmatively invited or merely permitted. The Second Restatement distinguishes an “invitation” from “mere permission” as follows: “an invitation is conduct which justifies others in believing that the possessor desires them to enter the land; permission is conduct justifying others in believing that the possessor is willing that they shall enter if they desire to do so.” Restatement (Second) of Torts § 332 cmt. b (1965).
The Second Restatement [*17] gives examples of licensees whose presence is merely permitted rather than encouraged. “Examples of licensees” include those “taking short cuts across land with the consent of the possessor,” “[l]oafers, loiterers, and those who enter only to get out of the weather, with permission to do so,” and “[s]pectators and sightseers not in any way encouraged to come.” Restatement (Second) of Torts § 330 reporter’s notes (1965).
Here, Grace affirmatively encouraged, and did not simply permit, the presence of plaintiff and other youth attendees. Grace sponsored the event, secured access to the land and lodgings, and arranged for meals. It took affirmative steps — including driving plaintiff and the others to the ranch — to facilitate their attendance and participation. To further encourage plaintiff’s attendance, Grace provided her with what it describes as a “partial scholarship.”
Simply put, Grace invited plaintiff and the other youths to attend its organized event. Grace’s actions demonstrate that Grace was affirmatively interested in having youths attend the event. Plaintiff’s situation was not comparable to that of a licensee merely permitted but not invited to be on another’s land.
[HN13] Only [*18] one type of licensee is categorically deemed not to be an invitee despite having affirmatively been encouraged to enter another’s land: a “social guest.” See § 13-21-115(5)(b). As one treatise puts it, such a guest “is an invitee who is not an invitee.” 5 Harper, Gray, and James on Torts § 27.11, at 234 (3d ed. 2008).
We are not persuaded by Grace’s contention that plaintiff was merely its social guest. Social hosts do not typically require their guests to sign permission slips and pay for their hospitality. Here, unlike a social guest accepting a host’s unrequited hospitality, plaintiff attended an organized group event — for which her father paid Grace $ 40 — intended to serve the mutual interests of the attendees and sponsor.
In contrast to the inapposite licensee categories, plaintiff falls more naturally within the Premises Liability Act’s definition of an invitee. [HN14] The Act creates two sometimes overlapping subcategories of invitees: (1) those present to transact business of mutual interest, and (2) public invitees. § 13-21-115(5)(a); see also Restatement (Second) of Torts § 332 & cmt. a (1965) (creating two similar subcategories, of “business visitors” and “public invitees,” but [*19] explaining that many invitees could be placed in either class).
Grace contends that plaintiff was not an invitee because her invitation did not involve transacting business and was not extended to the general public. We disagree.
As to the former subcategory, commercial business was transacted between Grace and plaintiff: plaintiff’s father paid Grace $ 40 so plaintiff could attend the event. [HN15] That Grace ultimately may not have profited (because the $ 40 was included among monies paid over to SDA or because Grace defrayed remaining costs through award of a “partial scholarship”) is not relevant under the Premises Liability Act.
Moreover, [HN16] those present on land “to transact business in which the parties are mutually interested,” § 13-21-115(5)(a), need not invariably be engaged in commercial activity. See generally Bryan A. Garner, Black’s Law Dictionary 226 (9th ed. 2009) (definition of “business” can include “transactions or matters of a noncommercial nature”); cf. In re Parental Responsibilities of H.Z.G., 77 P.3d 848, 851-53 (Colo. App. 2003) (holding that Colorado’s long-arm statute, extending personal jurisdiction based on “[t]he transaction of any business within this state,” § 13-21-124(1)(a), C.R.S. 2010, [*20] applies to noncommercial activities; following out-of-state cases). Thus, other courts have extended “business invitee” status where nonprofit entities encouraged attendance by individuals whose presence provided no apparent economic benefit. See, e.g., Thomas v. St. Mary’s Roman Catholic Church, 283 N.W.2d 254, 258 (S.D. 1979) (visiting high school basketball player injured at a church school gymnasium was the church’s “business invitee”); Home v. N. Kitsap School Dist., 92 Wn. App. 709, 965 P.2d 1112, 1118 (Wash. Ct. App. 1998) (visiting assistant football coach at game where no admission was charged was an invitee because “[h]is presence was related to [public school district’s] business of running its schools”).
As to the latter subcategory, [HN17] one can be a “public” invitee where an invitation is extended to “the public, or classes or members of it.” Restatement (Second) of Torts § 332 cmt. c (emphasis added). Thus, a garden club member was an invitee of an estate “opened to those members of the public who were on the Palm Beach Garden Club tour of homes.” Post v. Lunney, 261 So. 2d 146, 148 (Fla. 1972). And a girl-scout leader was an invitee where a bank allowed the troop (“a segment of the public”) [*21] free use of its facilities. McKinnon v. Washington Fed. Sav. & Loan Ass’n, 68 Wn.2d 644, 414 P.2d 773, 777-78 (Wash. 1966).
Ultimately, plaintiff was an invitee because Grace’s invitation carried an implicit assurance that Grace would act with reasonable care to protect her. See Dan B. Dobbs, The Law of Torts 600 (2000) (“The real point is that [HN18] anyone who receives implicit or explicit assurance of safety is entitled to the invitee status and the reasonable care that goes with it.”). Grace’s post hoc denials of such implicit assurances are unpersuasive. Few youths would attend — and even fewer parents would allow and pay for their child’s attendance at — an overnight event whose sponsor disclaimed any intent or ability to make the event reasonably safe.
IV. Pretrial and Trial Proceedings
A. Pretrial Election
Though the case went to the jury only on a Premises Liability Act (PLA) claim, Grace argues that plaintiff should have been required to elect before trial between PLA and negligence claims. But it would have been unfair to compel such an election before resolving Grace’s contentions that it was not subject to the PLA. In any event, Grace was not prejudiced by lack of an earlier election. Cf. Thornbury v. Allen, 991 P.2d 335, 340 (Colo. App. 1999) [*22] (harmless error to instruct jury on both negligence and PLA claims).
B. Evidentiary Ruling
The trial court, over Grace’s objection, allowed into evidence the rental agreement that prohibited Grace from using the ATVs to tow anything. Grace renews its CRE 401-403 contentions that this contract was irrelevant and unfairly prejudicial.
[HN19] Trial courts have “broad discretion” to decide if documentary evidence should be admitted over relevancy and unfair prejudice objections. Uptain v. Huntington Lab, Inc., 723 P.2d 1322, 1329 (Colo. 1986). Here, it was within the trial court’s broad discretion to conclude that the rental contract was relevant and had probative value that was not significantly outweighed by any danger of unfair prejudice. That Grace used the rented ATVs for a contractually prohibited activity — the very activity that injured plaintiff — could properly be considered by the jury in evaluating whether Grace used reasonable care under all the circumstances of this case.
C. Closing Argument
Grace contends that plaintiff’s counsel’s closing argument was improper in various respects. None of Grace’s current objections was timely raised in the trial court. Indeed, after the case had [*23] been submitted, Grace’s counsel noted just one alleged error in plaintiff’s closing argument; as to that single argument, he stated, “I don’t know what a remedy for that is, but I think the record should reflect that [this argument] did occur.” The trial court responded that “[t]he record reflects what it was.”
Our review of these unpreserved objections is exceptionally limited. [HN20] There is no civil rule analogue to the criminal rule, Crim. P. 52(b), allowing plain error review. In civil damages cases, moreover, liberty is not at stake and there is no constitutional right to effective counsel. Thus, only in a “rare” civil case, involving “unusual or special” circumstances — and even then, only “when necessary to avert unequivocal and manifest injustice” — will an appellate court reverse based on an unpreserved claim of error. Harris Group, Inc. v. Robinson, 209 P.3d 1188, 1195 (Colo. App. 2009) (discussing Blueflame Gas, Inc. v. Van Hoose, 679 P.2d 579, 586-87 (Colo. 1984), and Robinson v. City & County of Denver, 30 P.3d 677, 684 (Colo. App. 2000)).
Grace’s unpreserved challenges to plaintiff’s closing arguments do not come close to meeting this demanding standard. The closing arguments [*24] were not plainly improper and did not result in any manifest injustice.
V. Amount of Judgment
The final issue is whether judgment should have entered in the full amount of the jury verdicts or a lesser amount covered by Grace’s insurance. The trial court reduced the judgment to $ 2 million total but, because it construed Grace’s policy to cover them, added prejudgment interest and costs. All sides challenge this amount. Grace contends the trial court acted erroneously (or at least precipitously) in construing the policy to cover prejudgment interest on top of the $ 2 million policy limits, while plaintiff and insurer contend that the amount of judgment should have been tied to the higher jury verdicts regardless of any lesser insurance coverage carried by Grace. We agree with plaintiff and insurer.
The issue turns on a construction of section 7-123-105, C.R.S. 2010. That statute dates to 1967, a year after a fractured supreme court case (generating a majority opinion, a separate concurrence, two separate dissents, and an “addendum” by the author of the majority opinion) grappled with the common law doctrine of charitable trust immunity. See Hemenway v. Presbyterian Hospital Ass’n, 161 Colo. 42, 419 P.2d 312 (1966). [*25] Surprisingly, the statute has never been construed in a published appellate opinion.
Before addressing the statute, we summarize the common law backdrop against which it was enacted. One thing was clear under Colorado common law: funds held in “trust” for charitable purposes could not be “depleted” by a tort judgment. St. Mary’s Academy v. Solomon, 77 Colo. 463, 468, 238 P. 22, 24 (1925). Later cases also stated, however, that while this “trust-fund rule does not bar an action against a charitable institution based on the tort of its agents,” “it does prohibit the levying of an execution under a judgment procured against it in such a suit on any property which is a part of the charitable trust.” O’Connor v. Boulder Colorado Sanitarium Ass’n, 105 Colo. 259, 261, 96 P.2d 835, 835 (1939), quoted and followed in St. Luke’s Hospital Ass’n v. Long, 125 Colo. 25, 28-29, 240 P.2d 917, 920 (1952).
Colorado cases thus distinguished between a permissible tort suit or judgment against a charity and the exemption of trust funds from levy or execution. In 1960, our supreme court wrote that “so-called charitable immunity does not protect from suit or judgment” and “immunity from attachment of trust [*26] funds does not come into play until such attachment is attempted.” Michard v. Myron Stratton Home, 144 Colo. 251, 258, 355 P.2d 1078, 1082 (1960).
The distinction became blurred, and confusion was spawned, where it was undisputed a defendant charity had no non-trust-fund assets available to satisfy any judgment. That was the situation in Hemenway, where the justices divided over the propriety of pretrial dismissal. Compare 161 Colo. at 45, 419 P.2d at 313 (affirming dismissal because “no useful purpose would be served by directing this action to proceed to judgment” where parties stipulated there were no non-trust-fund assets available), with id. at 46, 419 P.2d at 314 (McWilliams, J., concurring) (agreeing dismissal should be affirmed, but only because parties had stipulated to it if trust-fund doctrine remained viable), and with id. (Pringle, J., dissenting) (issue was “premature” because “in this State charitable immunity is not immunity from suit or liability for tort, but only a recognition that trust funds cannot be seized upon by execution nor appropriated to the satisfaction of tort liability”).
That confusion should not have extended to the present case, where Grace indisputably [*27] had a $ 2 million insurance policy. Even under common law it was clear that insurance funds could be executed on to satisfy a tort judgment. See O’Connor, 105 Colo. at 261-62, 96 P.2d at 836.
In any event, the author of Hemenway invited Colorado’s legislature to address the issue. See 161 Colo. at 49-53, 419 P.2d at 316-17 (addendum of Moore, J.). The General Assembly accepted this invitation a year later when it enacted the predecessor of the statute now codified as section 7-123-105. See Ch. 327, sec. 1, § 31-24-110, 1967 Colo. Sess. Laws 655.
[HN21] The statute, titled “Actions against nonprofit corporations,” does two things by its express terms. First, it removes any possible immunity from suit by providing that “[a]ny other provision of law to the contrary notwithstanding, any civil action permitted under the law of this state may be brought against any nonprofit corporation.” § 7-123-105. Second, it allows for levy and execution against otherwise immune assets of nonprofit entities “to the extent” the entity would be reimbursed by liability insurance. See id. (“the assets of any nonprofit corporation that would, but for articles 121 to 137 of this title, be immune from levy and execution [*28] on any judgment shall nonetheless be subject to levy and execution to the extent that such nonprofit corporation would be reimbursed by proceeds of liability insurance policies carried by it were judgment levied and executed against its assets”).
Thus, under the statute’s plain terms, there is no longer (if there ever was) any impediment to suits against nonprofit organizations. The statute, moreover, does not limit the amount of any resulting judgment, but simply addresses “the extent” to which any such judgment is “subject to levy and execution.” Id.
We conclude, under the plain language of the statute and under the prior common law, that the existence and amount of liability insurance provides no basis for limiting a judgment against a nonprofit or charitable defendant. Rather, the issue of liability insurance is relevant only when a plaintiff seeks to levy and execute on a judgment.
Here, therefore, it is premature to construe Grace’s insurance policy to determine the extent of its coverage, including whether the policy would cover prejudgment interest in addition to any liability limit. Regardless of insurance coverage, plaintiff and insurer were entitled to entry of judgment against [*29] Grace to the full amount of a judgment that would have been entered against a for-profit entity. Whether and to what extent plaintiff and insurer ultimately can execute on their judgment is a separate issue that need not be decided at this juncture.
VI. Conclusion
The judgment is vacated as to the amount, and the case is remanded for entry of a new judgment unreduced by any limits on Grace’s insurance coverage. The judgment is affirmed in all other respects.
JUDGE CARPARELLI concurs.
JUDGE FURMAN dissents.
DISSENT BY: FURMAN
DISSENT
JUDGE FURMAN dissenting.
Plaintiff was seriously injured at a youth retreat (Winterama 2005) sponsored by Grace Community Church. She sued Grace for negligence. The jury returned verdicts against Grace totaling more than $ 4 million. I disagree with the majority as to
(1) the duties Grace owed plaintiff under the premises liability statute,
(2) the interpretation of the parental waiver statute, and
(3) various evidentiary errors.
Therefore, I respectfully dissent.
I. Colorado’s Premises Liability Statute
I agree with the majority that Grace was a landowner under Colorado’s premises liability statute. Section 13-21-115(1), C.R.S. 2010, of Colorado’s premises liability statute provides: “For [*30] the purposes of this section, ‘landowner’ includes, without limitation, an authorized agent or a person in possession of real property and a person legally responsible for the condition of real property or for the activities conducted or circumstances existing on real property.” See Pierson v. Black Canyon Aggregates, Inc., 48 P.3d 1215, 1221 (Colo. 2002)(construing the word “and” to distinguish between two broad classes of landowners).
As a landowner, Grace owed plaintiff duties depending on whether plaintiff was a “licensee” or an “invitee.” Subsections (3)(b) and (c) of section 13-21-115 state, in relevant part:
(3)(b) A licensee may recover only for damages caused:
(I) By the landowner’s unreasonable failure to exercise reasonable care with respect to dangers created by the landowner of which the landowner actually knew . . . .
(c)(I). . . [A]n invitee may recover for damages caused by the landowner’s unreasonable failure to exercise reasonable care to protect against dangers of which he actually knew or should have known.
The landowner’s intent in offering the invitation determines the status of the visitor and establishes the duty of care the landowner owes the visitor. See § 13-21-115(5)(a), [*31] (b); see also Carter v. Kinney, 896 S.W.2d 926, 928 (Mo. 1995). The status of the visitor and duty of care the landowner owes are questions of law for the court to decide. § 13-21-115(4) (“In any action to which this section applies, the judge shall determine whether the plaintiff is a trespasser, a licensee, or an invitee . . . .”).
If a landowner invites a person to enter his land, and the landowner either expects a commercial benefit from that person or has extended an invitation to the public at large, the person is an invitee. Restatement (Second) of Torts § 332(2), (3) & cmts. c, d, e (1965); see Carter, 896 S.W.2d at 928; see also Wolfson v. Chelist, 284 S.W.2d 447, 448 (Mo. 1955)(invitee status arises “when the owner invites the use of his premises for purposes connected with his own benefit, pleasure and convenience,” and when this occurs, “the duty to take ordinary care to prevent [the invitee’s] injury is at once raised and for the breach of that duty an action lies” (emphasis in original)(quoting Glaser v. Rothschild, 221 Mo. 180, 120 S.W. 1, 3, (Mo. 1909))). Conversely, if a landowner either permits a person’s entry onto his land or invites that person as his social guest, but the landowner [*32] does not expect a commercial benefit, that person is a licensee. Restatement (Second) of Torts § 330 cmts. a, h (1965). I conclude plaintiff was not an invitee because Grace neither expected a commercial benefit from plaintiff nor extended an invitation to the public at large.
A. Invitee Status
Section 13-21-115(5)(a) defines “invitee” as
a person who enters or remains on the land of another to transact business in which the parties are mutually interested or who enters or remains on such land in response to the landowner’s express or implied representation that the public is requested, expected, or intended to enter or remain.
The two categories of invitees in section 13-21-115(5)(a) track those identified in the Second Restatement of Torts. See Restatement (Second) of Torts § 332(2), (3) (creating categories of “business visitor” and “public invitee”). I conclude plaintiff did not satisfy either category.
1. Business Visitor
Concerning the “business visitor” category, the majority concludes noncommercial activity can confer invitee status. However, the majority’s conclusion conflicts with the opinion of another division of this court, which expressly recognized that “the General Assembly [*33] intended the ‘invitee’ status to apply in circumstances in which the ‘landowner’ receives a financial benefit from the relationship.” Maes v. Lakeview Assocs., Ltd., 892 P.2d 375, 377 (Colo. App. 1994)(citing legislative history), aff’d, 907 P.2d 580 (Colo. 1995); see also Wolfson, 284 S.W.2d at 450 (invitation to invitee must confer some “material benefit motive”); Brian A. Garner, Black’s Law Dictionary 226 (9th ed. 2009)(defining “business” as “[a] commercial enterprise carried on for profit,” “commercial enterprises,” or “[a] [c]ommercial transaction”).
The majority quotes a portion of Black’s definition of “business” for the proposition that “‘business’ can include ‘transactions or matters of a noncommercial nature.'” However, that definition has as its example, “the courts’ criminal business occasionally overshadows its civil business.” Hence, in that context, “business” means some type of purposeful activity not related to the other party, rather than business transactions “in which the parties are mutually interested.” § 13-21-115(5)(a).
Thus, I believe the majority’s holding that the “business” contemplated by section 13-21-115(5)(a) includes “transactions or matters of a noncommercial [*34] nature” (an activity that confers no commercial benefit) irreconcilably conflicts with the legislature’s carefully chosen language. Moreover, in the two out-of-state cases relied on by the majority, there is little to no analysis of this issue. In Thomas v. St. Mary’s Roman Catholic Church, the court baldly concludes the plaintiff was a “business invitee.” 283 N.W.2d 254, 258 (S.D. 1979). And in Home v. North Kitsap School District, the court merely recites its adoption of the Second Restatement to conclude that the plaintiff was an invitee without discussing the fact that the activity was noncommercial. 92 Wn. App. 709, 965 P.2d 1112, 1118 (Wash. App. 1998); see id. at 1117 nn. 17-19.
Grace’s then-youth pastor testified at trial, and it is not disputed, that when Grace received the monies from the youth for Winterama, he transferred those monies to SDA as a matter of course. Grace was thus a mere intermediary for the business transaction that occurred between plaintiff and SDA. Accordingly, because Grace derived no commercial benefit from the visit, I conclude plaintiff was not a business visitor. See Maes, 892 P.2d at 377; see also Mooney v. Robinson, 93 Idaho 676, 471 P.2d 63, 65 (Idaho 1970)(holding that the “rendition [*35] by a social guest of an incidental economic benefit to the occupier of the premises will not change the licensee’s status to that of an invitee”).
Moreover, no evidence was adduced at trial to support the trial court’s finding that plaintiff rendered financial compensation–a commercial benefit–to Grace for its supervision of her. Rather, the undisputed evidence demonstrates that every dollar Grace received it remitted to SDA, and that the chaperones were not compensated. Thus, the trial court’s conclusion that plaintiff was an invitee because “she entered on the property to transact business which was namely the promotion of spirituality, positive youth relationships for which she paid Grace to provide the supervision,” which conferred no commercial benefit on Grace, was error. See Maes, 892 P.2d at 377; see also Carter, 896 S.W.2d at 928.
2. Public Invitee
Concerning the “public invitee” category, the majority concludes invitee status may lie where the invitation applies merely to “classes or members of” the public.
However, in discussing situations where a landowner extends an invitation to “classes or members of” the public, the Second Restatement includes the term “classes or members [*36] of” in the context of a variety of landowners inviting the public at large to enter:
The nature of the use to which the possessor puts his land is often sufficient to express to the reasonable understanding of the public, or classes or members of it, a willingness or unwillingness to receive them. Thus the fact that a building is used as a shop gives the public reason to believe that the shopkeeper desires them to enter or is willing to permit their entrance, not only for the purpose of buying, but also for the purpose of looking at the goods displayed therein or even for the purpose of passing through the shop.
Restatement (Second) of Torts § 332 cmt. c (emphasis added).
Moreover, section 13-21-115(5)(a) defines “invitee” as “a person who enters or remains on the land of another . . . in response to the landowner’s express or implied representation that the public is requested, expected, or intended to enter or remain.” The commonly accepted and understood meaning of “public” is “the people as a whole: populace, masses.” Webster’s Third New International Dictionary 1836 (2002). Hence, in a “public invitee” situation the landowner must invite the public at large or imply that the public [*37] at large is expected to enter or remain. This construction satisfies the legislative purpose “to clarify and to narrow private landowners’ liability.” Pierson, 48 P.3d at 1219.
Trial evidence reveals Grace did not extend its invitation to attend Winterama 2005 to the public at large, but limited its invitation to Grace’s youth group and their friends. Grace’s then-youth pastor testified that the Winterama waiver forms were mailed only to those youth who were on a list that the church had on file, that youth group students “would pick [the forms] up Wednesday night during a program,” and that “[s]ome students took permission slips home to give to their friends.” Likewise, when plaintiff was asked how she perceived Winterama 2005 before the event occurred, she confirmed that she understood Winterama to be “essentially a church retreat.” Accordingly, I conclude plaintiff could not be a “public invitee” because there simply was no invitation to the public at large.
The majority’s reliance on out-of-state cases, to conclude the invitation may apply only to select classes or members of the public, is misplaced. In Post v. Lunney, the plaintiff was declared to be a public invitee because she [*38] had been “invited to enter [land] which had been opened to those members of the public” who were on a tour of area homes. 261 So. 2d 146, 148 (Fla. 1972). There is no indication that the small subset of the public of which the plaintiff was a part was the only group or type of group that was allowed to tour the homes. The Post court expressly relied on subsection 2 of section 332 of the Restatement (Second) of Torts, which reads, “A public invitee is a person who is invited to enter or remain on land as a member of the public for a purpose for which the land is held open to the public.” Id. (emphasis added). And in McKinnon v. Washington Federal Savings & Loan Ass’n, where the court determined the plaintiff also was a public invitee, the defendant held its premises open “for the free use of local clubs and organized groups for meetings and conferences, either during regular office hours or in the evenings,” 68 Wn.2d 644, 414 P.2d 773, 774 (Wash. 1966), and not solely for the plaintiff’s select group. Thus, in both Post and McKinnon, the premises were otherwise held open to the public at large.
B. Licensee (Social Guest) Status
A member of Grace’s youth group asked plaintiff to attend Winterama 2005, [*39] and Grace provided its permission (after it received the parental consent form) before she could do so. Thus, I conclude plaintiff was a social guest (licensee) of Grace, and Grace owed plaintiff the duty to make safe dangers of which it was aware. § 13-21-115(3)(b), (5)(b); see Carter, 896 S.W.2d at 928.
Section 13-21-115(5)(b) defines “licensee” as “a person who enters or remains on the land of another for the licensee’s own convenience or to advance [the licensee’s] own interests.” A social guest is one who has received a social invitation, and is a subclass of licensees. § 13-21-115(5)(b) (“‘Licensee’ includes a social guest.”); see Carter, 896 S.W.2d at 928.
The majority concludes plaintiff was not a social guest because “social hosts do not typically require their guests to sign permission slips and pay for their hospitality.” Although the majority implies that social hosts may require their guests to sign permission slips, I believe the majority’s conclusion overlooks the important difference between “invitation” and “permission.” When courts decide if an individual is an invitee or a licensee, the distinction between invitation and permission is critical:
Although invitation does [*40] not in itself establish the status of an invitee, it is essential to it. An invitation differs from mere permission in this: an invitation is conduct which justifies others in believing that the possessor desires them to enter the land; permission is conduct justifying others in believing that the possessor is willing that they shall enter if they desire to do so. . . .
Mere permission, as distinguished from invitation, is sufficient to make the visitor a licensee . . . ; but it does not make him an invitee, even where his purpose in entering concerns the business of the possessor.
Restatement (Second) of Torts § 332 cmt. b. Thus, if there is no invitation extended to the prospective plaintiff as would be extended to the general public, he or she is not an invitee, but rather a licensee who is on the land “pursuant to the landowner’s permission or consent.” § 13-21-115(5)(b).
Grace restricted its permission to attend Winterama 2005 to its own youth and their friends whose parents had waived in writing their right to hold Grace responsible for “any liability which may result from participation.” Grace consented to the attendance of the youth on condition that the waiver was signed. The [*41] precondition of a waiver demonstrates that the Winterama participants were permitted to come rather than invited, which “is sufficient to make the visitor a licensee.” Restatement (Second) of Torts § 332 cmt. b.
The Second Restatement’s definition of “social guest” affirms that:
[A]lthough a social guest normally is invited, and even urged to come, he is not an “invitee,” within the legal meaning of that term . . . . He does not come as a member of the public upon premises held open to the public for that purpose, and he does not enter for a purpose directly or indirectly connected with business dealings with the possessor. The use of the premises is extended to him merely as a personal favor to him.
Restatement (Second) of Torts § 330 cmt. h(3).
Plaintiff was not a member of Grace, and her attendance at Winterama 2005 was due solely to the influence of a male classmate of hers at the Denver School of the Arts, who expressly persuaded her to come to Winterama. She testified that her perception of Winterama 2005 was that “we would leave our everyday lives and go try to further our spiritual enlightenment.” See Garner, Black’s Law Dictionary 776 (social guest is “[a] guest who is invited [*42] to enter or remain on another person’s property primarily for private entertainment as opposed to entertainment open to the general public”); Webster’s Third New International Dictionary at 1008 (a guest is “a person to whom hospitality . . . is extended”).
Further, the majority surmises that Grace’s invitation carried an “implicit or explicit assurance” that Grace would act with reasonable care to protect plaintiff. The majority reasons that “[f]ew youths would attend — and even fewer parents would allow and pay for their child’s attendance at — an overnight event whose sponsor disclaimed any intent or ability to make the event reasonably safe.” However, in its section on licensees, the Second Restatement explains that
there is a common understanding that the guest is expected to take the premises as the possessor himself uses them, and does not expect and is not entitled to expect that they will be prepared for his reception, or that precautions will be taken for his safety, in any manner in which the possessor does not prepare or take precautions for his own safety, or that of the members of his family.
Restatement (Second) of Torts § 330 cmt. h(3). Thus, as a social guest, plaintiff [*43] could rely on precautions that a landowner would take as he would for himself or for his family.
The evidence reveals the leaders regarded the youth attending Winterama 2005 as “social guests” because the leaders took precautions for the safety of the attendees as they would for their own safety. One chaperone testified he personally rode the inner tube towed by the ATV around the lake three or four times before plaintiff rode the inner tube. And the then-youth pastor testified that the leaders “walk[ed] pretty much the entirety of the lake, or [they] [would] get on the ATVs and drive it, too,” to inspect the lake for “potential hazards” exhaustively before the ATV activity started. He said these hazards were the type that “could cause a safety issue with the activities that [they] were going to do on the ice” and that included sharp objects that could “cause the tube to puncture.”
Another chaperone who drove the ATV–and who also participated in the inspection of the lake–testified that he had used an ATV and inner tubes to tow people “700 to 1000 times” and that he had in fact towed his own daughter behind the ATV on the lake such that “[he] treated [his daughter] just like any of [*44] the other students.” Because the evidence shows Grace’s chaperones not only took precautions that they would have for their own safety, but also took the same care for members of their own families as for other attendees, plaintiff was a licensee of Grace at Winterama 2005.
Because plaintiff was a licensee, Grace was entitled to additional protections under the premises liability statute. See Pierson, 48 P.3d at 1219 (overriding purpose of premises liability statute was “to clarify and to narrow private landowners’ liability to persons entering their land, based upon whether the entrant is a . . . licensee[] or invitee”). Accordingly, Grace was liable to plaintiff only “with respect to dangers created by the landowner of which the landowner actually knew.” § 13-21-115(3)(b)(I). Because the jury was not so instructed, I would reverse the judgment and remand for a new trial.
II. Colorado’s Parental Waiver Statute
The majority interprets the word “informed” in section 13-22-107, C.R.S. 2010, Colorado’s parental waiver statute, to mean “made with full knowledge of the risks involved and the alternatives” (quoting Garner, Black’s Law Dictionary at 346). The majority implies Grace’s waiver [*45] form was facially deficient because it delineated neither the specific activities in which the youth would engage nor the risks associated with each activity. Because I conclude the majority’s resolution of this issue vitiates the legislative intent expressed in the statute, I respectfully dissent.
The legislature explicitly stated the purpose of Colorado’s parental waiver statute:
(I) Children of this state should have the maximum opportunity to participate in sporting, recreational, educational, and other activities where certain risks may exist;
(II) Public, private, and non-profit entities providing these essential activities to children in Colorado need a measure of protection against lawsuits, and without the measure of protection these entities may be unwilling or unable to provide the activities;
(III) Parents have a fundamental right and responsibility to make decisions concerning the care, custody, and control of their children. The law has long presumed that parents act in the best interest of their children.
(IV) Parents make conscious choices every day on behalf of their children concerning the risks and benefits of participation in activities that may involve risk;
(V) These [*46] are proper parental choices on behalf of children that should not be ignored. So long as the decision is voluntary and informed, the decision should be given the same dignity as decisions regarding schooling, medical treatment, and religious education; and
(VI) It is the intent of the general assembly to encourage the affordability and availability of youth activities in this state by permitting a parent of a child to release a prospective negligence claim of the child . . . .
§ 13-22-107(1)(a)(I)-(VI). Hence, the legislature intended (1) to afford children the “maximum opportunity” to engage in “essential activities” having “certain risks”; (2) to uphold and effectuate the choices of parents for their children “concerning the risks and benefits of participation in” potentially risky activities; and (3) to give “public, private, and non-profit entities . . . a measure of protection” by insulating them from liability for negligent conduct during “activities that may involve risk.” Id. Based on these purposes, the legislature stated, “A parent of a child may, on behalf of the child, release or waive the child’s prospective claim for negligence.” § 13-22-107(3). Accordingly, the word “informed” [*47] ought to be construed in light of the statutory scheme, which is geared toward expanding children’s access to activities involving risk yet simultaneously contracting the liability exposure of entities providing those activities, so that those entities might have a “measure of protection” and not be “unwilling or unable to provide the activities.” § 13-22-107(1)(a)(I), (II), (VI).
A. Informed Consent
Section 13-22-107 does not define the term “informed.” I agree with the majority that “informed” as defined in Black’s Law Dictionary at 346–“made with full knowledge of the risks involved and the alternatives”–should govern this analysis. Accordingly, I conclude the term “informed” in section 13-22-107 means only that a parent be “informed” as to the possible risks involved.
Applying this definition, I conclude the waiver in this case was sufficient, for several reasons. First, the waiver identified the general nature of the activities to which the waiver applied: “Winterama 2005 and all activities associated with it.” Second, the waiver identified the possible risks associated with Winterama 2005–“injury or sickness”–and even required the parent to consent to any medical treatment Grace [*48] might need to administer or pay for in the event of such injury or sickness. Third, even though the waiver did not state verbatim, “I recognize I have the right to sue Grace in the event the negligence of Grace or its agents causes my child personal injury, but I give up that right voluntarily,” the waiver nevertheless more than accomplished this purpose–by stating the signing parent “will not hold [Grace] or it’s [sic] participants responsible for any liability which may result from participation.” Thus, I conclude the waiver was sufficient to give Grace the “measure of protection” from legal liability that section 13-22-107 envisions.
In canvassing the case law where the supreme court upheld the validity of waivers, the majority concludes that a waiver must “contain[] some reference to waiving personal injury claims based on the activity being engaged in.” I disagree with this conclusion because I believe the majority reads the statute more broadly than the legislature intended. The majority would require public, private, or nonprofit organizations to include in their waiver forms a plethora of activities and, with respect to each, “assess the degree of risk and the extent of possible [*49] injuries from any activity.” I believe the logical result would be absurd disclosure requirements, such as,
Children attending Winterama 2005 will be staying in cabins. The paths and steps leading to each cabin may be snow-packed and icy. There is a risk that your child may slip and fall on the paths or steps and a fall may result in serious injuries including, without limitation, broken bones, concussions, and paralysis,
or lengthy booklets describing every conceivable activity and associated possible injury. I disagree with this approach because, in my opinion, it would unduly expose those entities to liability for activities that the entities inadvertently failed to identify and include in their parental waiver forms, or for activities that they could not possibly know or anticipate. Further, such an approach runs contrary to the legislative intent of providing “a measure of protection against lawsuits,” and without that measure of protection, these entities may be unwilling or unable to provide these “essential activities” to children in Colorado. I believe it is not reasonable to expect organizations operating under section 13-22-107 to anticipate every permutation of a recreational [*50] event.
Moreover, I would not engage in what I respectfully believe to be the majority’s parsing of the waiver. The waiver at issue is addressed to the everyday, commonsense parent. I submit the everyday, commonsense parent would not analyze what each sentence of a waiver specifically addresses apart from each other sentence, but rather would comprehend what the waiver addresses en toto: a release of his or her child’s prospective claim for negligence. See § 13-22-107(3).
B. The Parental Waiver Affirmative Defense
In addition, I conclude the trial court committed reversible error when, on the morning of closing arguments, it sua sponte precluded the jury from considering the affirmative defense of parental waiver. See Pollock v. Highlands Ranch Community Ass’n, 140 P.3d 351, 354 (Colo. App. 2006).
The day before closing arguments occurred, the trial court originally determined that a jury instruction concerning the effect of the waiver could not be given because the supreme court assigned the determination of the effect of the waiver to the trial court as a question of law. Cf. Heil Valley Ranch, Inc. v. Simkin, 784 P.2d 781, 784 (Colo. 1989). But after counsel for Grace pointed out the [*51] court’s resolution of this issue essentially would be “to take that from the jury” and that the court “need[ed] to state the basis” for its ruling, the court said it would “hold off on the jury instruction piece.”
When the issue arose again late that same day, after the close of evidence and during the jury instructions conference, plaintiff’s counsel argued the language in the waiver did not suffice to make plaintiff’s mother “informed.” The court asked plaintiff’s counsel to state his position on the affirmative defense of waiver, and he said,
What I think — what I would like to see the Court do, Your Honor, is to declare the effect of this release, and I think the effect of this permission slip doesn’t say this, does not have the effect of releasing the defendant’s [sic] from the premises liability claims.
The court responded, “I want to take a few minutes to think about this. . . . We’ll be in recess.” After that exchange and a brief statement from counsel for SDA, the record abruptly ceases. There is nothing about the court’s thoughts on the waiver until early the next day during its instructions to the jury right before closing arguments. At this time, the court announced to the [*52] jury that “the Court has ruled as a matter of law that Exhibit 85 [the parental waiver] is not a defense to Plaintiff’s claims in this case” and struck the waiver from the record with no further elaboration.
In my view, the trial court erred in taking the issue away from the jury. I acknowledge that “[t]he determination of the sufficiency and validity of an exculpatory agreement is [primarily] a question of law for the court to determine.” Jones v. Dressel, 623 P.2d 370, 376 (Colo. 1981). However, contrary to the majority, I conclude Grace presented sufficient evidence for the trial court to submit to the jury the parental waiver as an affirmative defense.
“An affirmative defense ‘is a legal argument that a defendant, who is capable of being sued, may assert to require the dismissal of a claim or to prevail at trial.'” Paratransit Risk Retention Group Ins. Co. v. Kamins, 160 P.3d 307, 319 (Colo. App. 2007)(quoting State v. Nieto, 993 P.2d 493, 507 (Colo. 2000)). The parental waiver defense, if successful, would allow Grace to avoid premises liability. Accordingly, it is an affirmative defense.
Because waiver is an affirmative defense, the defendant has the burden to prove waiver. C.R.C.P. 8(c); [*53] see City of Westminster v. Centric-Jones Constructors, 100 P.3d 472, 480 (Colo. App. 2003)(“Failure to mitigate damages is an affirmative defense under C.R.C.P. 8(c) on which the defendant bears the burden of proof.”); see also Fidelity & Deposit Co. v. Colo. Ice & Storage Co., 45 Colo. 443, 449, 103 P. 383, 386 (1909)(defendant had burden of proof to sustain proffered affirmative defense); Tracz v. Charter Centennial Peaks Behavioral Health Sys., Inc., 9 P.3d 1168, 1174 (Colo. App. 2000)(concluding defendants “met their initial burden of production to establish their affirmative defense”). And section 13-22-107 is an affirmative defense to premises liability because section 13-21-115 “does not exclusively limit defenses and does not abrogate statutorily created defenses, which were available to landowners before the 2006 amendment and afterward.” Tucker v. Volunteers of Am. Colo. Branch, 211 P.3d 708, 711 (Colo. App. 2008), aff’d sub nom. Volunteers of Am. v. Gardenswartz, P.3d , 2010 Colo. LEXIS 861 (Colo. No. 09SC20, Nov. 15, 2010).
At trial, under C.R.C.P. 8(c), the trial court’s only responsibility was to assess whether Grace presented sufficient evidence to support the affirmative defense of [*54] parental waiver. See Fair v. Red Lion Inn, 943 P.2d 431, 437 (Colo. 1997)(holding that failure to mitigate damages, an affirmative defense under C.R.C.P. 8(c), “will not be presented to the jury unless the trial court determines there is sufficient evidence to support it”); cf. Stauffer v. Karabin, 30 Colo. App. 357, 363-64, 492 P.2d 862, 865 (1971)(where doctor in malpractice suit presented evidence that his failure to inform plaintiff of all risks attendant to an operation was consistent with community medical standards, “the determination then becomes one for the jury and a directed verdict in favor of plaintiff would not be warranted”).
I believe the trial court misapprehended its duty with regard to the legal sufficiency of Grace’s parental waiver. The question whether a parental waiver is “voluntary” is answered if the parent is shown to have signed the waiver. The question whether a parental waiver is “informed” is answered if the waiver on its face defines the possible risks and the general nature of the activities to which the waiver applied. See Garner, Black’s Law Dictionary at 346 (“informed” is “made with full knowledge of the risks involved and the alternatives”). To this [*55] end, the parental waiver statute focuses on the risks involved in recreational activities for children as it affirms the conscious choices that parents make for their children. § 13-22-107(1)(a)(I), (IV). Thus, if the parental waiver is both “voluntary” and “informed,” the trial court must submit the affirmative defense of parental waiver to the jury.
I would conclude Grace presented sufficient evidence to support its affirmative defense of parental waiver. The parental waiver was signed voluntarily because, as plaintiff herself testified, her mother signed the waiver two days before Winterama 2005 occurred. And the parental waiver on its face not only informed mother of the possible risks associated with Winterama 2005– “injury or sickness”–but also revealed her willingness to “not hold [Grace] or it’s [sic] participants responsible for any liability which may result from participation.” Thus, I conclude the trial court should have permitted the jury to consider Grace’s affirmative defense of parental waiver, and believe it erred in not doing so.
Moreover, the way the trial court ruled on the evidence of waiver throughout the case–until it removed Exhibit 85 from the trial evidence [*56] and jury’s consideration–reveals that Grace had no reason to expect it had to clear up any lingering questions of fact for the jury to consider the affirmative defense of parental waiver. For example, before trial, Grace moved for summary judgment on the issue of waiver, but the court ruled there was a question of fact “as to whether a permission slip was signed on behalf of Plaintiff.” (The original apparently was lost by the hospital.) In response, during plaintiff’s case-in-chief, counsel for Grace established that plaintiff’s mother in fact had signed the waiver, and that Grace received the waiver before the Winterama event.
Based on this uncontroverted testimony, at the close of plaintiff’s case Grace moved for a directed verdict. But the court found “the jury could conclude that there was inadequate notice to the mother” and “a jury could conclude that the activity [in question] was a reckless act or grossly negligent act for which a parent is not permitted to waive the child’s prospective claim for such conduct.” The court concluded this despite the fact that plaintiff in her complaint did not assert any claim for tortious conduct rising above the level of simple negligence. [*57] Again, in response, Grace used both expert testimony and lay testimony in its case to establish that the ATV activity was done in a safe manner. Nevertheless, as noted, on the morning of closing arguments the court told the jury that it could not consider the parental waiver. At that point, its role should have been limited to deciding whether Grace had presented sufficient evidence to support the existence of the parental waiver as an affirmative defense. The court did not so limit its role.
Accordingly, I would reverse the judgment and remand for a new trial.
III. The ATV Rental Contract
The majority concludes the trial court did not abuse its discretion in allowing the ATV rental contract into evidence over Grace’s objection. I respectfully disagree. There was nothing in the contract, and no evidence regarding the parties’ intent was adduced, to suggest plaintiff’s injury was a danger that Blue Sky Motors–who was not a party to this case–and Grace, the two parties to the ATV contract, knew about or should have known about in this premises liability case.
For all these reasons, I would reverse the judgment and remand for a new trial.
Universal Gym Equipment, Inc. v Vic Tanny International, Inc., 207 Mich. App. 364; 526 N.W.2d 5; 1994 Mich. App. LEXIS 443
Posted: January 24, 2011 Filed under: Health Club, Legal Case, Michigan, Release (pre-injury contract not to sue) | Tags: Excercise Equipment, Excercise Machine, Exculpatory Agreement, Gym, Health club, Release Leave a commentUniversal Gym Equipment, Inc. v Vic Tanny International, Inc., 207 Mich. App. 364; 526 N.W.2d 5; 1994 Mich. App. LEXIS 443
Universal Gym Equipment, Inc., Plaintiff-Appellant, v Vic Tanny International, Inc., and Vic Tanny of Greater Michigan, inc., Defendants-Appellees.
No. 157313
COURT OF APPEALS OF MICHIGAN
207 Mich. App. 364; 526 N.W.2d 5; 1994 Mich. App. LEXIS 443
May 18, 1994, Submitted
November 7, 1994, Decided
SUBSEQUENT HISTORY: [***1] Opinion On Rehearing April 3, 1995, Reported at: 1995 Mich. App. LEXIS 146.
DISPOSITION: Affirmed in part, reversed in part, and remanded.
COUNSEL: Barbier & Barbier, P.C. (by Ralph W. Barbier, Jr.), for the plaintiff.
Petersmarck, Callahan, Bauer & Maxwell, P.C. (by Richard W. West), for the defendants.
JUDGES: Before: Michael J. Kelly, P.J., and Corrigan and C.D. Corwin, * JJ.
* Circuit judge, sitting on the Court of Appeals by assignment.
OPINION BY: MICHAEL J. KELLY
OPINION
[*366] [**6] MICHAEL J. KELLY, P.J.
Plaintiff appeals as of right a circuit court order granting defendants’ motion for summary disposition under MCR 2.116(C)(7) and (8) and dismissing plaintiff’s complaint for contribution and indemnification following settlement of an underlying suit against plaintiff by a third party. We affirm in part, reverse in part, and remand.
I
On March 13, 1990, Catherine Ostroski filed suit against plaintiff Universal Gym Equipment, Inc., after she was injured at a Vic Tanny health club while using an exercise machine manufactured by Universal. Ostroski alleged that Universal was at fault. Because of a release [***2] provision in her health club membership contract, Ostroski did not name Vic Tanny as a defendant. However, Vic Tanny was aware of the proceedings and was requested to participate in settlement negotiations. On November 4, 1991, Ostroski reached a settlement agreement with Universal for $ 225,000.
On July 1, 1991, Universal initiated separate proceedings in a complaint against Vic Tanny alleging that Vic Tanny was liable for failure to maintain safe premises and had an obligation to indemnify against or to contribute toward any settlement between Universal and Ostroski. Universal filed an amended complaint after settlement with Ostroski. On July 6, 1992, Vic Tanny filed a motion for summary disposition, which the circuit court granted on September 15, 1992, on the basis that Vic Tanny could not be liable for contribution [*367] or indemnification where it had a valid defense under the release provision.
II
Universal first argues that the circuit court erred in granting summary disposition of its contribution claim because the release provision in Ostroski’s membership contract was unenforceable as against public policy. Alternatively, Universal contends that any defense provided [***3] by the release clause in an action between Vic Tanny and Ostroski was insufficient to bar recovery by Universal in a separate action for contribution against Vic Tanny.
A
With respect to thefirst argument, Universal now concedes that the release clause is enforceable in cases of ordinary negligence in light of this Court’s recent decision in Skotak v Vic Tanny Int’l, Inc, [**7] 203 Mich. App. 616; 513 N.W.2d 428 (1994). There, the Court upheld the validity of an identical clause, recognizing that [HN1] “[i]t is not contrary to this state’s public policy for a party to contract against liability for damages caused by its own ordinary negligence.” Id. at 617-618. The Court also found that the release provision “clearly expresses [Vic Tanny’s] intention to disclaim liability for all negligence, including its own.” Id. at 619.
The Skotak Court did not address the enforceability of the release clause with respect to a claim of gross negligence. Universal argues that a preinjury release provision absolving a party from liability for grossly negligent conduct [***4] violates Michigan public policy. We agree. See Klann v Hess Cartage Co, 50 Mich. App. 703, 706; 214 N.W.2d 63 [*368] (1973); Island Creek Coal Co v Lake Shore, Inc, 692 F. Supp. 629, 633(WD Va, 1988) (applying Michigan law). See also Sommer v Federal Signal Corp, 79 N.Y.2d 540, 554; 583 N.Y.S.2d 957; 593 N.E.2d 1365 (1992). Universal claims that Vic Tanny was grossly negligent in failing to maintain the exercise equipment and to train its employees and members regarding proper use of the equipment. Although Universal’s original complaint did not sound in gross negligence, it filed a motion for a second amended complaint that did include allegations of gross negligence. The trial court denied the motion, but Vic Tanny’s response to the motion and the order denying the motion are missing from the record. Because motions to amend a complaint are accorded great liberality, see MCR 2.118, and because the grounds for the trial court’s denial of the motion in this case remain a mystery, we reverse the order of denial and remand for a new hearing on the motion to file a second amended [***5] complaint. If the trial court grants the motion it shall allow further proceedings on the claim of gross negligence. If it denies the motion it shall specify the reasons and grounds for the denial.
B
The issue still remaining is whether Vic Tanny may invoke the release provision as a defense against Universal’s contribution claim if its conduct amounted to ordinary negligence.
Because this is an issue of first impression in Michigan, plaintiff relies in part on the opinion of the New York Court of Appeals in Sommer, supra, which found a similar release clause wholly unenforceable against a third-party contribution claimant. We consider the analysis in Sommer inapposite [*369] because we are constrained by the Michigan contribution statute, MCL 600.2925a et seq.; MSA 27A.2925(1) et seq., to reach a different result.
The Sommer court addressed the enforceability of an exculpatory clause in a contract between a fire alarm monitoring service and its customer in a contribution action against the monitoring service by third parties. Although the Court found the release clause violative of public policy only in cases of [***6] gross negligence, it went on to hold that the provision did not provide a defense to the contribution claim even in cases of ordinary negligence:
In contribution cases, we have drawn a distinction between the absence of liability to an injured party, and the absence of a duty. Often, the absence of direct liability to plaintiff is merely the result of a special defense, such as the Statute of Limitations or the exclusivity of workers’ compensation, and not because defendant was free of fault. In such cases, we have held that codefendants may seek contribution from the joint wrongdoer, despite the wrongdoer’s own defense to plaintiff’s claim. This principle is fully in accord with the rationale of Dole [v Dow, 30 N.Y.2d 143; 331 N.Y.S.2d 382; 282 N.E.2d 288 (1972)], which promotes equitable distribution of the loss in proportion to actual fault. [79 N.Y.2d at 558 (Citations omitted; emphasis in original.]
See also Moyses v Spartan Asphalt Paving Co, 383 Mich. 314; 174 N.W.2d 797 (1970); Caldwell v Fox, 394 Mich. 401, 419-420; 231 N.W.2d 46 (1975) [***7] (noting that Moyses “returned the doctrine of contribution among non-intentional wrongdoers to the original equitable rules”).
[**8] The Sommer court further explained that the defendant’s exculpatory provision in that case was “akin to a special defense that does not affect the [*370] codefendants’ ability to obtain contribution.” 79 N.Y.2d 558.
. . . Although [the defendant’s] direct liability to [the plaintiff in the underlying action] (by virtue of the exculpatory clause) is triggered only upon gross negligence, its duty is to avoid ordinary negligence. Upon breach of that duty, fairness requires that [the defendant] contribute to the judgment in proportion to its culpability. [Id. (Emphasis in original.)]
Perhaps most persuasive was the court’s observation that “it would be patently unfair to abrogate the [codefendants’] right to contribution based on an exculpatory clause to which they were not a party.” Id. In this case, Universal was not a party to the membership agreement between Vic Tanny and Ostroski. By asserting the release provision as a defense to the contribution claim, Vic Tanny is able to shift all claims [***8] to Universal without its prior knowledge or consent. 1
1 The effect on Vic Tanny’s insurability for such risks is not before us, but certainly an underwriter would weigh these risks in estimating premiums.
Nonetheless, Vic Tanny contends that the language of the contribution statute, enacted after Moyses, supra, dictates a different result from that which we would reach under the rationale of Sommer. Reluctantly, we agree.
[HN2] MCL 600.2925a; MSA 27A.2925(1) provides in pertinent part:
(3) A tort-feasor who enters into a settlement agreement with a claimant is not entitled to recover contribution from another tort-feasor if any of the following circumstances exist:
(a) The liability of the contributee for the injury or wrongful death is not extinguished by the settlement.
[*371] (b) A reasonable effort was not made to notify the contributee of the pendency of [***9] the settlement negotiations.
(c) The contributee was not given a reasonable opportunity to participate in the settlement negotiations.
(d) The settlement was not made in good faith.
(4) In an action to recover contribution commenced by a tort-feasor who has entered into a settlement, the defendant may assert the defenses set forth in subsection (3) and any other defense he may have to his alleged liability for such injury or wrongful death. [Emphasis added.]
Vic Tanny contends that the release provision qualifies as “any other defense,” thereby exonerating it from liability for contribution. We agree that the plain language of the statute cannot be read any other way. The reference to a defendant’s “alleged liability for such injury or wrongful death” clearly refers to liability to the injured party. The statute allows the defendant to apply “any” defense available against such liability to the contribution claim. [HN3] Where the language of a statute is clear, the Legislature must have intended the meaning plainly expressed, and the statute must be enforced as written. Gebhardt v O’Rourke, 444 Mich. 535, 541-542; [***10] 510 N.W.2d 900 (1994). In this case, the release clause effectively provides Vic Tanny with a defense against liability to Ostroski if its conduct constituted ordinary negligence.
Accordingly, while we remand for further proceedings, we conclude that Vic Tanny may be liable for contribution only for gross negligence.
III
Universal also argues that summary disposition [*372] was improper with respect to its indemnification claim. We disagree.
In Williams v Litton Systems, Inc, 433 Mich 755, 760;449 N.W.2d 669 (1989), the Supreme Court held that [HN4] an action for indemnification can be maintained only on the basis of an express contract or, in the case of common-law or implied contractual indemnification, by a party who is free from negligence or fault. In addition, where the complaint in the underlying action does not contain allegations of derivative or vicarious liability, a claim of implied indemnification is precluded. Employers Mutual Casualty [**9] Co v Petroleum Equipment, Inc, 190 Mich. App. 57, 65-66; [***11] 475 N.W.2d 418 (1991); Hadley v Trio Tool Co, 143 Mich. App. 319, 331; 372 N.W.2d 537 (1985).
Universal’s indemnification claim is not based on an express contractual agreement. Further, Ostroski’s complaint in the underlying action alleged active negligence on the part of Universal. Universal argues that, if the matter had proceeded to trial, the evidence would have shown that Vic Tanny improperly maintained its facilities and failed to apply a warning sticker. [HN5] Where, as here, there are no allegations of vicarious liability and the partyseeking indemnification disputes its own active negligence, it must do so against the plaintiff in the underlying action. See Gruett v Total Petroleum, Inc, 182 Mich. App. 301, 307; 451 N.W.2d 608 (1990), rev’d on other grounds 437 Mich. 876, 463 N.W.2d 711 (1990). Accordingly, the circuit court properly granted Vic Tanny’s motion for summary disposition of the indemnification claim.
Affirmed in part, reversed in part, and remanded for proceedings consistent with [***12] this opinion. We do not retain jurisdiction if the motion to file a second amended complaint is granted. We do retain jurisdiction if it is denied.
/s/ Michael J. Kelly
/s/ Maura D. Corrigan
/s/ Charles D. Corwin
Upky v. Marshall Mountain, Llc, 2008 MT 90; 342 Mont. 273; 180 P.3d 651; 2008 Mont. LEXIS 94
Posted: January 17, 2011 Filed under: Legal Case, Montana, Ski Area | Tags: Bamboo Poles, Closre, Jump Closed, Retailer, ski area, Ski Jump, skiing, Snowboarder, snowboarding Leave a commentUpky v. Marshall Mountain, Llc, 2008 MT 90; 342 Mont. 273; 180 P.3d 651; 2008 Mont. LEXIS 94
CHAD UPKY, Plaintiff, v. MARSHALL MOUNTAIN, LLC, Defendant, and MARSHALL MOUNTAIN, LLC, Third-Party Plaintiff and Appellant, v. BOARD OF MISSOULA, INC. and BOARD OF MISSOULA, LLC, Third-Party Defendants and Appellees.
DA 06-0109
SUPREME COURT OF MONTANA
2008 MT 90; 342 Mont. 273; 180 P.3d 651; 2008 Mont. LEXIS 94
May 16, 2007, Submitted on Briefs
March 18, 2008, Decided
April 3, 2008, Released for Publication
PRIOR HISTORY:
APPEAL FROM: District Court of the Fourth Judicial District, In and For the County of Missoula, Cause No. DV 02-112. Honorable John W. Larson, Presiding Judge.
Upky v. Marshall Mt., 2004 Mont. Dist. LEXIS 3716 (2004)
CASE SUMMARY:
PROCEDURAL POSTURE: Plaintiff accident victim brought a negligence suit against defendant ski area owner, which in turn filed a complaint against third-party defendant ski jump builder for contribution or indemnification. After a jury trial on the third-party complaint, the District Court of the Fourth Judicial District, County of Missoula (Montana), entered judgment in favor of the builder. The owner appealed.
OVERVIEW: After the ski area owner and the accident victim came to a settlement, the ski jump builder was allowed to amend its answer to the owner’s complaint, pursuant to M.R. Civ.P. 15(a), to include a claim that the victim’s negligence, in combination with that of the owner, caused his injuries. The supreme court held that the trial court did not err when it permitted the builder to amend its answer, and that even if there was error, it was harmless because: (1) the jury, in determining that the builder was not negligent, did not reach the question whether the victim was negligent; and (2) thus there was no prejudice to the owner. The supreme court also held that the record demonstrated that substantial credible evidence supported the jury’s verdict that the builder was not negligent; because the evidence was conflicting; the supreme court deferred to the jury’s determination as to which evidence was more credible.
OUTCOME: The trial court’s judgment was affirmed.
CORE TERMS: jump, amend, bamboo, poles, jury verdict, comparative negligence, skiers, ski, credible evidence, constructed, prejudiced, snowboard, morning, jury’s decision, conflicting evidence, unfinished, harmless, ski area, snowboarders, patrol, verdict form, responsive pleading, reasonable mind, inspected, non-party, apportion, predicate, credible, manager, marked
COUNSEL: For Appellant: Gig A. Tollefsen, Berg, Lilly & Tollefsen, P.C., Bozeman, Montana.
For Appellees: Maxon R. Davis, Davis, Hatley, Haffeman & Tighe, Great Falls, Montana.
JUDGES: JOHN WARNER. We Concur: JIM RICE, JAMES C. NELSON, PATRICIA COTTER, BRIAN MORRIS.
OPINION BY: John Warner
OPINION
[***652] [**274] Justice John Warner delivered the Opinion of the Court. [*P1] Third-party plaintiff Marshall Mountain, LLC (Marshall Mountain) appeals from a judgment entered in the Fourth Judicial District Court, Missoula County, in favor of third-party defendants Board of Missoula, Inc. and Board of Missoula, LLC (Board of Missoula), dismissing its third party complaint after a jury verdict in Board of Missoula’s favor.
[*P2] We restate and address the issues on appeal as follows:
[*P3] 1. Did the District Court err when it granted Board of Missoula’s motion to amend its answer to allege comparative negligence by Chad Upky?
[*P4] 2. Was the jury’s verdict that Board of Missoula was not negligent supported by substantial credible evidence?
BACKGROUND
[*P5] On February 12, 1999, eighteen year old Chad Upky was rendered a paraplegic in a skiing accident at Marshall Mountain ski area. The injuries occurred when Upky skied over a ski jump ramp constructed at Marshall Mountain for use in an upcoming snowboard competition. Upky became inverted when he skied over the jump and was injured when he landed.
[**275] [*P6] Board of Missoula was a local snowboard shop that in the years before Upky’s accident had worked with Marshall Mountain to construct jumps for use in snowboard competitions at the ski area. In prior years, the jumps had been constructed up to two weeks before the competition and had remained open for use by skiers at Marshall Mountain. In 1999, Marshall Mountain’s [***653] owner, Bruce Doering, and Board of Missoula’s co-owner, Wright Hollingsworth, agreed to construct a jump for use in that year’s competition. The ski jump on which Upky was injured was constructed two days before the accident. Doering later claimed, on behalf of Marshall Mountain, that he understood the jump would be open for use before the February 1999 competition. To the contrary, Hollingsworth asserted that he and Doering had agreed the jump would be closed prior to the 1999 competition.
[*P7] On Wednesday, February 10, 1999, before the snowboard competition scheduled for the next Saturday, Hollingsworth went to Marshall Mountain after the ski area closed for the evening and built the jump with the help of Marshall Mountain’s snowcat operator, Tyson Miller. Miller and Hollingsworth worked on the jump from about 10:00 p.m. Wednesday night until 2:00 a.m. the next morning. Hollingsworth later said that he wanted to hand finish the jump in the daylight using shovels. It was his opinion that the jump should not be opened for use until it was finished. He said that before he left early Thursday morning he laid bamboo poles across the jump to indicate that it was closed. Hollingsworth said that he believed the ski patrol would see the bamboo poles when they inspected the area in the morning and would keep the jump closed. Later, members of the ski patrol and other employees of Marshall Mountain disagreed about whether there were bamboo poles across the jump on Thursday morning.
[*P8] No matter whether Hollingsworth had marked the jump as closed with bamboo poles, the jump was open for use by skiers and snowboarders that Thursday and again on Friday. Doering and the ski patrol examined the jump, and it was left open for skiers and snowboarders. Doering stated that he had ultimate authority on whether or not to allow Marshall Mountain patrons to use the jump. Several employees of Marshall Mountain used the jump with no problem.
[*P9] On Friday, the day of Upky’s accident, the jump was open throughout the day. Late in the day, a Marshall Mountain employee suggested to Doering that they close the jump due to changing snow [**276] and lighting conditions. However, Doering decided to keep the jump open. Chris Laws, Board of Missoula’s retail manager, was at Marshall Mountain on Friday. He noticed the jump was open, even though he understood it was supposed to be closed.
[*P10] On Friday evening, Upky and some friends approached the jump. Upky claimed that he tried to slow himself going into the jump by snowplowing with his skis and went over the jump at a controlled speed. Other witnesses to the accident, including Doering and Laws, stated the Upky “bombed” the jump by going into it extremely fast. Upky suffered severe injuries as a result of his fall, including a broken neck that resulted in his paraplegia.
[*P11] In 2002, Upky brought suit against Marshall Mountain, alleging that its negligence was the cause of his injuries. Upky made no claim against Board of Missoula. In its answer, Marshall Mountain denied any negligence and asserted affirmative defenses, including Upky’s comparative negligence. Marshall Mountain filed a third-party complaint against Board of Missoula seeking contribution or indemnification, asserting that Board of Missoula was responsible for any negligence in the construction of the jump. In its answer, Board of Missoula denied it had been negligent and went on to claim that the jump was unfinished when Upky used it and that it had cordoned off the jump to prevent its use prior to the competition, but Marshall Mountain negligently allowed the use of the jump on the day of Upky’s accident. Subsequently, Board of Missoula, in response to a request for admission, admitted that it had left the jump in an unfinished condition and that it was dangerous. However, it qualified the admission to state that the actions of Marshall Mountain in removing the bamboo poles marking the jump closed and allowing its patrons to use the jump were careless and caused Upky’s injuries.
[*P12] Following discovery, Board of Missoula moved for summary judgment, arguing that it was not negligent as a matter of law. The District Court denied the motion for summary judgment in November 2003.
[***654] [*P13] In December 2003, Marshall Mountain and Upky settled Upky’s claim. In March 2004, the District Court noted that because of the settlement only Marshall Mountain’s claims against Board of Missoula remained to be litigated; Upky’s claims against Marshall Mountain were later dismissed.
[*P14] In July 2004, Board of Missoula moved to amend its answer, pursuant to M. R. Civ. P. 15(a), to include a claim that Upky’s negligence, in combination with that of Marshall Mountain, caused his [**277] injuries, and to have the jury determine the extent of his negligence as a non-party under § 27-1-703, MCA. Board of Missoula’s amended answer reasserted the claim in the original answer that Board of Missoula was not negligent and Marshall Mountain was negligent for allowing skiers to use the unfinished jump. The amended answer only added the assertion that both Upky and Marshall Mountain caused or contributed to the damages alleged by Upky. Board of Missoula did not attempt to withdraw its admission that the jump was dangerous. Marshall Mountain opposed the motion, arguing that it came too late and the amendment adding a claim of comparative negligence by Upky would be unfairly prejudicial. The District Court granted the motion to amend.
[*P15] A jury trial on the third-party complaint began December 5, 2005. At trial, numerous witnesses provided conflicting evidence on the events surrounding Upky’s injuries. The witnesses’ testimony varied widely on whether Doering and Hollingsworth had agreed to close the jump prior to the competition, whether Hollingsworth placed bamboo poles on the jump, and how dangerous, if at all, the jump was for skiers and snowboarders. There was also conflicting evidence regarding the exact circumstances of Upky’s fall, specifically how far away he was when he began approaching the jump and how fast he went over the jump.
[*P16] The special verdict form submitted to the jury first instructed it to determine if Board of Missoula was negligent. Only if the jury found that Board of Missoula was negligent was it to decide if Upky and Marshall Mountain were also negligent and fix the percentages of negligence. The jury returned its verdict finding that Board of Missoula was not negligent. Thus, it did not apportion fault. The District Court entered a final judgment in favor of Board of Missoula. Marshall Mountain appeals.
DISCUSSION
[*P17] Issue 1: Did the District Court err when it granted Board of Missoula’s motion to amend its answer to allege comparative negligence by Chad Upky?
[*P18] The Montana Rules of Civil Procedure provide for amendments to pleadings:
[HN1] A party may amend the party’s pleading once as a matter of course at any time before a responsive pleading is served or, if the pleading is one to which no responsive pleading is permitted and the action has not been placed upon the trial calendar, the party [**278] may so amend it at any time within 20 days after it is served. Otherwise a party may amend the party’s pleading only by leave of court or by written consent of the adverse party; and leave shall be freely given when justice so requires.
M. R. Civ. P. 15(a). [HN2] While amendments are not permitted in every circumstance, we have emphasized that, as Rule 15(a) states, leave to amend should be “freely given” by district courts. Loomis v. Luraski, 2001 MT 223, P 41, 306 Mont. 478, P 41, 36 P.3d 862, P 41. District courts should permit a party to amend the pleadings when, inter alia, allowing an amendment would not cause undue prejudice to the opposing party. Prentice Lumber Co. v. Hukill, 161 Mont. 8, 17, 504 P.2d 277, 282 (1972) (quoting Foman v. Davis, 371 U.S. 178, 182, 83 S. Ct. 227, 230, 9 L. Ed. 2d 222 (1962)).
[*P19] Marshall Mountain claims it was prejudiced by the amendment to the pleadings which allowed the jury to consider Upky’s negligence. However, the jury heard all of the evidence concerning the actions of Board of Missoula presented by Marshall Mountain, which included the admission that the jump was dangerous, and nevertheless determined that Board of Missoula was not negligent. Thus, it did not reach the question [***655] of whether Upky was negligent. As the jury did not consider any negligence on the part of Upky in reaching its verdict, there was no prejudice to Marshall Mountain. [HN3] When a special verdict requires a jury to answer a question only if it first determines that a predicate question is answered in the affirmative, and the jury answers the predicate question in the negative, we have consistently held that the party objecting to the submission of the second, unanswered question is not prejudiced. Under such circumstances we consider any error harmless, and decline to interfere with the jury’s decision. See e.g. Payne v. Knutson, 2004 MT 271, PP 17-18, 323 Mont. 165, PP 17-18, 99 P.3d 200, PP 17-18 (concluding there was no prejudice to the plaintiff where the jury was not instructed to apportion negligence among the defendants because the jury found the plaintiff was more than 50% negligent and thus could not recover); Peschke v. Carroll College, 280 Mont. 331, 343, 929 P.2d 874, 881 (1996) (concluding that although a district court erred in admitting a videotape, it went to the issue of causation, which the jury did not reach, and the error was thus harmless); Drilcon, Inc. v. Roil Energy Corp., 230 Mont. 166, 173, 749 P.2d 1058, 1062 (1988) (declining to address appellant’s argument that the special verdict form erroneously included non-parties because the jury apportioned negligence only among the parties to the action and appellant was not prejudiced).
[**279] [*P20] We affirm the District Court’s order allowing Board of Missoula to amend the pleadings to allege Upky’s comparative negligence because Marshall Mountain was not prejudiced by it and any error was harmless.
[*P21] Issue 2: Was the jury’s verdict that Board of Missoula was not negligent supported by substantial credible evidence?
[*P22] [HN4] This Court does not review a jury verdict to determine if it was correct. We review a jury’s decision only to determine if substantial credible evidence in the record supports the verdict. Campbell v. Canty, 1998 MT 278, P 17, 291 Mont. 398, P 17, 969 P.2d 268, P 17; Wise v. Ford Motor Co., 284 Mont. 336, 343, 943 P.2d 1310, 1314 (1997). Substantial evidence is “evidence that a reasonable mind might accept as adequate to support a conclusion” and may be less than a preponderance of the evidence but must be more than a “mere scintilla.” Campbell, P 18.
[*P23] [HN5] It is the role of the jury to determine the weight and credibility of the evidence, and this Court will defer to the jury’s role. Seeley v. Kreitzberg Rentals, LLC, 2007 MT 97, P 21, 337 Mont. 91, P 21, 157 P.3d 676, P 21, overruled on other grounds, Giambra v. Kelsey, 2007 MT 158, P 27, 338 Mont. 19, P 27, 162 P.3d 134, P 27. [HN6] We view the evidence in the light most favorable to the prevailing party. Where conflicting evidence exists, we will not overturn a jury’s decision to believe one party over another. Samson v. State, 2003 MT 133, P 11, 316 Mont. 90, P 11, 69 P.3d 1154, P 11.
[*P24] The record before us demonstrates that substantial credible evidence supports the jury’s verdict that Board of Missoula was not negligent. Hollingsworth testified that he and Doering agreed the jump would be closed prior to the competition. Hollingsworth also testified that he had marked the jump closed with bamboo poles the night it was constructed, and other testimony supported this assertion. There was also evidence that only Marshall Mountain had the ultimate decision-making authority to open or close the jump. Marshall Mountain’s manager, Doering, testified he inspected the jump and thought it was safe. This evidence, which does not include the testimony describing Upky’s actions, provided the jury with an adequate basis to support its decision that Board of Missoula was not negligent. Campbell, P 18.
[*P25] There is also evidence which would tend to show Board of Missoula was negligent. However, because the evidence is conflicting we defer to the jury’s determination as to which evidence is more credible. Seeley, P 21. We conclude that the record contains sufficient [**280] evidence for reasonable minds to conclude that Board of Missoula was not negligent.
[***656] CONCLUSION
[*P26] The District Court did not err when it permitted Board of Missoula to amend its answer, and the jury verdict is supported by substantial credible evidence.
[*P27] Affirmed.
/S/ JOHN WARNER
We Concur:
/S/ JIM RICE
/S/ JAMES C. NELSON
/S/ PATRICIA COTTER
/S/ BRIAN MORRIS
Stelluti v. Casapenn Enterprises, Llc, d/b/a Powerhouse Gym, 203 N.J. 286; 1 A.3d 678; 2010 N.J. LEXIS 750
Posted: January 10, 2011 Filed under: Legal Case, New Jersey, Release (pre-injury contract not to sue) | Tags: biking, Cycling, Excercise Equipment, Gym, Health club, Negligent Instruction, Negligent Maintenance Leave a commentGINA STELLUTI, Plaintiff-Appellant, v. CASAPENN ENTERPRISES, LLC, d/b/a POWERHOUSE GYM, Defendant-Respondent, and ABI PROPERTY PARTNERSHIP, d/b/a PAVILION CENTER and STAR TRAC FITNESS, Defendants.
A-43 September Term 2009
SUPREME COURT OF NEW JERSEY
203 N.J. 286; 1 A.3d 678; 2010 N.J. LEXIS 750
March 9, 2010, Argued
August 5, 2010, Decided
PRIOR HISTORY: [*1]
On certification to the Superior Court, Appellate Division, whose opinion is reported at 408 N.J. Super. 435, 975 A.2d 494 (2009).
Stelluti v. Casapenn Enterprises, LLC, 408 N.J. Super. 435, 975 A.2d 494, 2009 N.J. Super. LEXIS 173 (App.Div., 2009)
SYLLABUS
(This syllabus is not part of the opinion of the Court. It has been prepared by the Office of the Clerk for the convenience of the reader. It has been neither reviewed nor approved by the Supreme Court. Please note that, in the interests of brevity, portions of any opinion may not have been summarized).
Gina Stelluti v. Casapenn Enterprises, LLC, d/b/a Powerhouse Gym (A-43-09)
Argued March 9, 2010 — Decided August 5, 2010
LAVECCHIA, J., writing for a majority of the Court.
The Court considers whether a pre-injury waiver of liability agreement that the plaintiff, Gina Stelluti, signed when she became a member at a private fitness center precludes her from recovering for her injuries.
On January 13, 2004, Stelluti entered into an agreement with defendant Powerhouse Gym (Powerhouse) for membership at its Brick, New Jersey facility. As part of the process of joining the facility, Stelluti signed and dated a waiver and release form. The form stated, in part, that the member assumed all risks of negligence on the part of Powerhouse, including injury from malfunctioning equipment. [*2] The same day that Stelluti signed the form and became a member, she participated in a spinning class. As the class began, the participants started out pedaling the spin bikes in a seated position. Shortly afterward, the instructor told the participants to change from a seated to a standing position on their bikes. When Stelluti rose to a standing position, the adjustable handlebars dislodged from the bike. She fell forward while her feet remained strapped to the pedals. Stelluti’s injuries included pain in her neck and shoulders, soreness in her thighs and back, a cracked tooth, and bruises. She later was diagnosed with back and neck strain and alleges that she suffers from chronic pain associated with myofascial pain syndrome.
Stelluti filed a complaint against Powerhouse and others. With regard to Powerhouse, Stelluti alleged negligence in failing to maintain and set up the bike, failing to properly instruct her on its use, failing to provide warnings and safe equipment, and other claims. Powerhouse filed a motion for summary judgment based on the waiver of liability agreement that Stelluti signed. The trial court granted the motion, finding that 1) the waiver agreement was enforceable [*3] because Powerhouse was not subject to a requirement to perform under a specific duty imposed by law; 2) the waiver was not unconscionable and Stelluti read and understood the agreement’s provisions; and 3) the exculpatory language in the waiver agreement covered claims sounding in both negligence and gross negligence.
The Appellate Division affirmed. 408 N.J. Super. 435, 975 A.2d 494 (App. Div. 2009). The panel held that the agreement was not unconscionable and therefore was valid. However, it determined that the agreement could only immunize Powerhouse from ordinary negligence and not from reckless, willful or wanton, or palpably unreasonable behavior. Because the facts in this matter did not support a claim for more than ordinary negligence, the panel held that summary judgment in favor of Powerhouse was proper. The Supreme Court granted Stelluti’s petition for certification. 200 N.J. 502 983 A.2d 1110 (2009).
HELD: The Court affirms the judgment of the Appellate Division, which upheld the dismissal of plaintiff Gina Stelluti’s negligence claims against defendant Powerhouse Gym for injuries she sustained on exercise equipment. It is not contrary to the public interest, or to a legal duty owed, to enforce the [*4] pre-injury waiver of liability agreement that Stelluti entered into with Powerhouse Gym, which limited the gym’s liability for injuries arising from a patron’s participation in instructed activity and voluntary use of the gym’s equipment.
1. A contract of adhesion is defined as one presented on a take-it-or-leave-it basis, commonly in a standardized printed form, without opportunity for the adhering party to negotiate. Although a contract of adhesion may require one party to choose either to accept or reject it as is, the agreement may be enforced. Here, Powerhouse’s agreement was a contract of adhesion, but Stelluti was not in a position of unequal bargaining power such that the contract must be voided. Stelluti could have taken her business to another fitness club, could have found another means of exercising aside from joining a gym, or could have sought advice before signing up and using the facility’s equipment. The agreement was not void based on any notion of procedural unconscionability. (Pp. 15-18)
2. In considering whether the agreement was enforceable even though it was exculpatory, the Court agrees with the trial court’s determination that Stelluti understood the terms of [*5] the agreement. The Court then considers whether Powerhouse had a legal duty to perform that governs here. The Court previously has recognized that certain activities require the participant to assume some risk because injuries are common. For such activities, the standard of care to be met must exceed mere negligence because the risk of injury cannot be eliminated through the exercise of reasonable care. Furthermore, although the Legislature has enacted statutes that allocate the risks and responsibilities of the parties who control and those who participate in certain types of recreational activities, it has not addressed private fitness centers. However, the common sense behind a risk-sharing approach does not make it unreasonable to employ exculpatory agreements, within limits, in private contractual arrangements between fitness centers and their patrons. (Pp. 18-29)
3. To determine whether the public interest would be adversely affected by enforcement of the exculpatory agreement in this matter, the Court engages in a balancing of public-policy interests. The Court explains that, by its nature, exercising entails vigorous physical exertion. Injuries are common and may result from [*6] faulty equipment, improper use of equipment, inadequate instruction, inexperience, poor physical condition of the user, or excessive exertion. Although there is a public interest in holding a health club to its duty to maintain its premises in a condition safe from defects that it is charged with knowing or discovering, it need not ensure the safety of its patrons who voluntarily assume some risk by engaging in strenuous physical activities that have a potential to result in injuries. Any requirement to guarantee a patron’s safety from all risk in using equipment that is passed from patron to patron could chill the establishment of health clubs, which perform a salutary purpose by offering activities and equipment so that patrons can enjoy challenging physical exercise. However, it would be contrary to the public interest to condone willful blindness to problems that arise with the equipment provided for patrons’ use. Therefore, the Court holds private fitness centers to a duty not to engage in reckless or gross negligence. If Powerhouse’s management or employees had been aware of a piece of defective exercise equipment and failed to remedy the condition or warn adequately of the dangerous [*7] condition, or if Powerhouse had dangerously or improperly maintained equipment, it could not exculpate itself from such reckless or gross negligence. The record in this matter, however, does not support such a showing. (Pp. 29-34)
4. The Court holds that it is not contrary to the public interest, or to a legal duty owed, to enforce Powerhouse’s agreement limiting its liability for injuries sustained as a matter of negligence that resulted from a patron’s voluntary use of equipment and participation in instructed activity. The exculpatory agreement between Powerhouse and Stelluti is enforceable as to the injury she sustained when riding the spin bike. (Pp. 34)
The judgment of the Appellate Division that sustained the summary judgment award to Powerhouse is AFFIRMED.
JUSTICE ALBIN, DISSENTING, joined by JUSTICE LONG, believes that the exculpatory clause in this matter should be void as against public policy because it unfairly allocates the risk from the commercial operator, who is in the best position to remove and prevent dangers on the premises, to an unwary patron. He maintains that the majority’s opinion will encourage a lack of due care on the part of commercial entities.
COUNSEL: Edward A. Genz [*8] argued the cause for appellant (Montenegro, Thompson, Montenegro & Genz, attorneys).
Russell S. Massey argued the cause for respondent (Billet & Associates, attorneys; Mr. Massey and Robert Douglas Billet, on the briefs).
E. Drew Britcher submitted a brief on behalf of amicus curiae New Jersey Association For Justice (Britcher, Leone & Roth, attorneys; Mr. Britcher and Jessica E. Choper, on the brief).
JUDGES: JUSTICE LaVECCHIA delivered the opinion of the Court. CHIEF JUSTICE RABNER and JUSTICES WALLACE, RIVERA-SOTO and HOENS join in JUSTICE LaVECCHIA’s opinion. JUSTICE ALBIN, joined by JUSTICE LONG, filed a separate, dissenting opinion.
OPINION BY: LaVECCHIA
OPINION
JUSTICE LaVECCHIA delivered the opinion of the Court.
On January 13, 2004, while participating in a spinning 1 class at a private fitness center, the handlebars on plaintiff Gina Stelluti’s spin bike dislodged from the bike, causing her to fall and suffer injuries. In this appeal we must determine whether plaintiff should be bound to a pre-injury waiver of liability that she executed in connection with her membership application and agreement. We conclude, for the reasons expressed herein, that the exculpatory agreement between the fitness center [*9] and Stelluti is enforceable as to the injury Stelluti sustained when riding the spin bike. In doing so [HN1] we reject the argument that limited liability waivers are per se invalid in private fitness center venues. Our decision affirms the Appellate Division judgment that upheld the dismissal of plaintiff’s claim.
1 “Spinning” is a popular exercise class offered by fitness centers. It involves riding a stationary bike led by a fitness instructor who gives commands to change positions, adjust the bike’s tension, and increase or decrease cadence.
I.
Stelluti entered into an agreement with defendant Powerhouse Gym 2 for membership at its Brick, New Jersey facility. To do so, she filled out three forms: a “Membership Agreement” form; a “Member Information” form; and a “Health/Safety Consent” form. The “Member Agreement” and “Member Information” forms requested basic personal information. The “Health/Safety Consent” form asked a series of questions about the patron’s physical condition, and further, required a patron answering “yes” to any question to submit a doctor’s note before commencing physical activity. The form also encouraged patrons to wear “proper footwear and attire,” to ask for assistance [*10] with equipment or classes, and to notify the manager if medical assistance was needed.
2 Powerhouse Gym is a trade name of Casapenn Enterprises, LLC.
Stelluti completed the forms, signed and dated them, and answered “no” in response to all questions on the “Health/Safety Consent” form. That same day, she also signed and dated a “Powerhouse Fitness (The Club) Waiver & Release Form” (waiver). 3 The waiver, a standard pre-printed form drafted exclusively for Powerhouse, provided as follows:
POWERHOUSE FITNESS (The Club)
WAIVER & RELEASE FORM
Because physical exercise can be strenuous and subject to risk of serious injury, the club urges you to obtain a physical examination from a doctor before using any exercise equipment or participating in any exercise activity. You (each member, guest, and all participating family members) agree that if you engage in any physical exercise or activity, or use any club amenity on the premises or off premises including any sponsored club event, you do so entirely at your own risk. Any recommendation for changes in diet including the use of food supplements, weight reduction and or body building enhancement products are entirely your responsibility and you should [*11] consult a physician prior to undergoing any dietary or food supplement changes. You agree that you are voluntarily participating in these activities and use of these facilities and premises and assume all risks of injury, illness, or death. We are also not responsible for any loss of your personal property.
This waiver and release of liability includes, without limitation, all injuries which may occur as a result of, (a) your use of all amenities and equipment in the facility and your participation in any activity, class, program, personal training or instruction, (b) the sudden and unforeseen malfunctioning of any equipment, (c) our instruction, training, supervision, or dietary recommendations, and (d) your slipping and/or falling while in the club, or on the club premises, including adjacent sidewalks and parking areas.
You acknowledge that you have carefully read this “waiver and release” and fully understand that it is a release of liability. You expressly agree to release and discharge the health club, and all affiliates, employees, agents, representatives, successors, or assigns, from any and all claims or causes of action and you agree to voluntarily give up or waive any right [*12] that you may otherwise have to bring a legal action against the club for personal injury or property damage.
To the extent that statute or case law does not prohibit releases for negligence, this release is also for negligence on the part of the Club, its agents, and employees.
If any portion of this release from liability shall be deemed by a Court of competent jurisdiction to be invalid, then the remainder of this release from liability shall remain in full force and effect and the offending provision or provisions severed here from.
By signing this release, I acknowledge that I understand its content and that this release cannot be modified orally.
Signed: /s/ Gina Stelluti Names of family members (if applicable):
Printed Name:
Dated: 1/13/04
Any patron who declined to sign the waiver was not permitted to use the Powerhouse Gym.
3 Plaintiff has claimed in her certification and deposition that the Powerhouse employee did not tell her that she was signing a release form. She also claimed she was not provided with a personal copy of the signed release.
Stelluti’s injury occurred at the gym the day that she joined. After signing the requisite paperwork to become a member, she went to participate [*13] in a spinning class. She advised the instructor of her inexperience and the instructor helped her to adjust the bike seat for height and showed her how to strap her feet to the pedals. The instructor then told Stelluti to watch and imitate her during the class.
As the class began, the participants started out pedaling in a seated position. Shortly afterward, the instructor told the participants to change from a seated to a standing position on their bikes. When Stelluti rose to a standing position, the handlebars dislodged from the bike. 4 As a result, Stelluti fell forward while her feet remained strapped to the pedals. With assistance, she succeeded in detaching herself from the bike. When she tried to resume participation after resting for fifteen minutes, she soon had to quit, finding herself in too much pain to continue.
4 As stated by Stelluti, she did not pull up on the handlebars as she stood. Rather, she described the handlebars as feeling loose as she held onto them when rising. She also said that she did not detect that the handlebars were loose before she stood up in the pedals.
Stelluti’s injuries included pain in her neck and shoulders, soreness in her thighs and back, a [*14] cracked tooth, and bruises on her legs. After a hospital visit, she was diagnosed with back and neck strain, prescribed medication, and discharged with a recommendation for a follow-up appointment with a doctor. She claims also to experience persistent pain as a result of the incident. Her medical expert has stated that three years after her accident Stelluti suffers from chronic pain associated with myofascial pain syndrome. 5
5 Myofascial pain syndrome is described as on-going or long-lasting pain stemming from the connective tissue (fascia) of muscles. WebMD, Myofascial Pain Syndrome, http://www.webmd.com/a-to-z-guides/myofascial-pain-syndrome-topic-overview.
Stelluti filed a timely complaint for damages in the Law Division against Powerhouse; Star Trac, the manufacturer of the spin bikes used at Powerhouse; and ABI Property Partnership, the premises owner. The complaint alleged the following negligence claims against Powerhouse and ABI: 1) “fail[ing] to properly maintain and set up the stationary bike”; 2) “fail[ing] to properly instruct the plaintiff as to how to use the bike [or] exercise proper care”; 3) “caus[ing] a dangerous and hazardous condition to exist”; 4) “allow[ing] [*15] a nuisance to exist”; 5) “fail[ing] to provide proper safeguards or warnings on the bike”; 6) “fail[ing] to provide proper and safe equipment”; 7) “maintain[ing] the bike in an unsafe, hazardous and/or defective manner”; and 8) acting in “a negligent, careless and reckless manner so as to cause an unsafe hazardous and/or defective condition to exist . . . [and failing] to provide proper safeguards and/or warnings.” Plaintiff also asserted a products liability claim against Star Trac Fitness. 6
6 Defendants Star Trac and ABI are no longer parties to the case. ABI was not represented at oral argument on Powerhouse’s motion for summary judgment, nor was ABI a party to the case before the Appellate Division. See Stelluti v. Casapenn Enters., 408 N.J. Super. 435, 443 n.3, 975 A.2d 494 (App. Div. 2009). Further, we were informed at oral argument that plaintiff’s claims against Star Trac have been resolved.
This appeal comes to us from a summary judgment record. That record reveals the following contrasting views about the spin bike that was involved in Stelluti’s fall and resultant injuries.
Powerhouse submitted an expert liability report that described the mechanics of a Star Trac Fitness Johnny G. Spinner [*16] Pro bike. According to that expert’s examination of an exemplar bike, 7 the handlebars have a chrome stem post and the entire, unitary piece — handlebars and post — may be detached and separated from the bike frame. The chrome post, which is approximately seven inches tall, contains seven elevation positioning holes, each approximately three-quarters of an inch apart. At the lower end of the post, a horizontal line and arrow, pointing down to the word “Maximum,” indicates the furthest extension point of the post. However, Powerhouse’s expert opined that an inexperienced user “would not notice th[at] mark.” The chrome post fits into a vertical support member that extends from the bike’s frame base. A locking pin — a threaded rod fitted with a spring-loaded pin and handle –secures the post to the frame. The pin is inserted into one of the elevation holes and is locked into place by tightening its handle. The expert noted that there is “no noticeable difference” between the appearance of the post when it is locked in place or when the post merely is resting on top of an elevation locking pin. Powerhouse’s expert concluded that plaintiff’s accident “occurred because the handlebars [*17] present on the stationary exercise bicycle that she was using unexpectedly and without warning separated from the bicycle causing her to fall.”
7 The actual bike on which Stelluti had sustained her injury could not be identified.
Stelluti’s liability expert, a college professor with an advanced degree in physical education and certifications in specialized fitness activities including spinning instruction, issued a report that opined that Powerhouse was “negligent in providing a safe environment” and, specifically that the spinning instructor “failed to provide effective specific supervision, instruction and assistance” to Stelluti. He also stated that Stelluti sustained her injuries as a result of the handlebar stem becoming dislodged from the locked position and explained how the handlebars may be raised or lowered, and locked into place, consistent with defendant’s liability expert. Plaintiff’s expert also agreed with those statements by defendant’s representatives, the spinning instructor, and plaintiff, that the only way the handlebars could have become dislodged would be if the lock pin had not been engaged and, instead, the stem had been resting on the lock pin. He explained that, [*18] when in that position, the stem would recede only one inch into the vertical support member, thus creating an unstable position for the handlebars. Therefore, when plaintiff raised herself from a seated position, and leaned forward and downward on the handlebars, the handlebars and post would separate from the frame.
Stelluti’s expert report also referenced a protocol 8 that, he said, every certified spinning instructor should follow, including “proper handlebar height adjustment” before each class to “help ensure a comfortable position on the bike and avoid undue strain on the back.” The protocol noted that students should be reminded “to check that the ‘pop pin’ is fully engaged in to make sure that the handlebars are secure.” The expert also referred to the Star Trac Group Cycles Owners Guide, which emphasized that “[p]roper instruction from a certified Spinning instructor should be used to properly fit the group cycle for use” and that “[u]sers should be aware of the features, functions and proper operation of the cycle before using the cycle for the first time.” In conclusion, Stelluti’s expert report stated that “[t]he proximal cause and mechanism of injury are a direct result [*19] of a lack of appropriate instructions in setting up the plaintiff’s bike by the instructor.”
8 The expert referred to the Madd Dog Athletics Johnny G. Spinning Instructor Manual.
As noted, defendant filed a motion for summary judgment. Before ruling, the trial court required additional briefing on whether common law premises liability imposed an affirmative duty that served to invalidate the use of an exculpatory agreement in this setting. Following submission of that additional briefing and argument, the court entered an order granting summary judgment in favor of Powerhouse, finding Powerhouse’s waiver effective to exculpate it from plaintiff’s negligence claims. The judge made several findings: 1) that the exculpatory agreement was enforceable because Powerhouse was not subject to a requirement to perform under a specific legal duty imposed by statute or by regulation; 2) that the waiver signed by Stelluti was not unconscionable and, further, that plaintiff had read and understood the agreement provisions when she signed them; and 3) that the exculpatory language would be applied to cover claims sounding in both negligence and gross negligence.
Plaintiff appealed, and in a comprehensive [*20] decision penned by Judge Sabatino, the Appellate Division affirmed the order granting summary judgment to defendant. Stelluti v. Casapenn Enters., 408 N.J. Super. 435, 440, 975 A.2d 494 (App. Div. 2009). Importantly, the appellate decision pared back the permissible reach of defendant’s exculpatory agreement with its patrons, holding “that the exculpatory agreement only insulated [defendant] from ordinary negligence respecting the use of the exercise equipment at its facility,” and that the agreement could not insulate defendant from “extreme conduct such as reckless, willful or wanton, or palpably unreasonable acts or omissions diminishing the safe condition of its equipment.” Id. at 439, 975 A.2d 494. Acknowledging that a fitness club owes a general duty to invitees who come onto its premises, the panel explained that the question was whether, and to what extent, the agreement entered into by Stelluti eliminated the duty that Powerhouse owed to her. Id. at 446, 448, 975 A.2d 494.
Recognizing that the standardized pre-printed document required for membership to the club constituted a contract of adhesion, Id. at 448-50, 975 A.2d 494, the panel first applied the factors identified in Rudbart v. North Jersey District Water Supply Commission, 127 N.J. 344, 356, 605 A.2d 681 (1992), [*21] and determined that the agreement was not unconscionable and therefore was valid. Stelluti, supra, 408 N.J. Super. at 449-50, 975 A.2d 494. The panel then addressed the agreement’s enforceability in light of its exculpatory nature. Id. at 453, 975 A.2d 494. In performing that inquiry, the panel considered the test that had been identified by another appellate panel in Gershon v. Regency Diving Center, Inc., 368 N.J. Super. 237, 248, 845 A.2d 720 (App. Div. 2004), which stated that an exculpatory agreement
is enforceable only if: (1) it does not adversely affect the public interest; (2) the exculpated party is not under a legal duty to perform; (3) it does not involve a public utility or common carrier; or (4) the contract does not grow out of unequal bargaining power or is otherwise unconscionable.
[Id. at 454, 975 A.2d 494 (citing Gershon, supra, 368 N.J. Super. at 248, 845 A.2d 720).]
Addressing considerations one, two, and four under Gershon (because the third plainly was inapplicable), the panel explained that Powerhouse has a general legal duty to its business invitee patrons and, therefore, “[a]n unbounded waiver of liability [would] unjustifiably eviscerate [] those protections for business invitees.” Id. at 454-55, 975 A.2d 494. However, the panel also cited [*22] other countervailing public policy considerations, including the importance of encouraging physical fitness and the necessity for fitness facilities to have access to the protections of exculpatory agreements due to the potential for substantial financial exposure from injuries associated with exercise equipment and activities in a gym. Id. at 455-57, 975 A.2d 494. The panel balanced those public interest and policy considerations against the state interest in the established common law on premises liability, and found that although the public policy interests could not justify a complete waiver of liability, the exculpatory agreement was valid but required some paring. Id. at 457-59, 975 A.2d 494 (stating that “[i]f Powerhouse, or any other fitness club, so sharply deviated from the ordinary standards of reasonable care, public policy dictates that the exculpatory agreement should not protect it from liability”). The panel held that Powerhouse’s exculpatory agreement could only immunize it from ordinary negligence and not “reckless, willful or wanton, or palpably unreasonable [behavior].” Id. at 439, 975 A.2d 494.
Focusing on the liability question raised by the facts in this matter, and expressly not addressing the validity [*23] of the agreement either as to hazards posed by other equipment on the premises not used routinely for exercising or as to other dangerous conditions that could arise on any premises, the panel addressed whether plaintiff’s proofs raised her above the exculpatory bar against liability for ordinary negligence associated with use of the fitness equipment. Id. at 459-60, 975 A.2d 494. The appellate panel concluded, like the trial court, that it could not determine exactly how the handlebars became detached, but that, even if the instructor had failed to check the handlebars, or a cleaning-crew member mistakenly had removed the pin, and the equipment was not examined before Stelluti or any other patron was allowed to use the equipment, those acts did not rise to a reckless or extreme deviation from a duty of care. Id. at 460, 975 A.2d 494. 9 In sum, even though the agreement attempted to protect Powerhouse from acts or omissions concerning the safety of its equipment that constituted more than ordinary negligence, because there was no genuine issue of fact that rose above a cause of action in ordinary negligence, the panel held that summary judgment in favor of Powerhouse was proper and affirmed the judgment. Id. at 460-61, 975 A.2d 494.
9 The [*24] panel also found that the record presented no evidence that Powerhouse had neglected over time to maintain its equipment. Stelluti, supra, 408 N.J. Super. at 460-61, 975 A.2d 494.
We granted plaintiff’s petition for certification, 200 N.J. 502, 983 A.2d 1110 (2009). Plaintiff argues that the language of the agreement was unclear and ambiguous, and thus inadequate; that it is an unconscionable contract of adhesion not entitled to be enforced; and that it is contrary to public policy to allow an exculpatory agreement to be applied in the instant context. In respect of her last point, plaintiff maintains that the spinning instructor’s failure to check the handlebars before she allowed Stelluti to mount the bike and begin the spin class amounted to gross negligence and, therefore, summary judgment should not have issued.
Powerhouse refutes each of plaintiff’s arguments, and generally agrees with the reasoning of the Appellate Division decision, parting company only as to the panel’s holding that declared the agreement inapplicable to gross negligence claims.
II.
The issue of general public importance in this appeal, see R. 2:12-4, concerns the enforceability of an exculpatory agreement executed in a commercial setting [*25] involving membership in an exercise facility, where the exculpation brought about by the agreement does not implicate the violation of any statutory or regulatory legal duty owed by the facility. It is not the circumstances of the forming of this take-it-or-leave-it waiver agreement that drew our attention, although that is among Stelluti’s points of error in seeking certification. We reject that claim of error in her petition and, substantially for the reasons expressed in Judge Sabatino’s opinion, we affirm the Appellate Division’s assessment of this agreement as a contract of adhesion but one that does not suffer from procedural unconscionability concerns. We add briefly the following.
[HN2] A contract of adhesion is defined as one “presented on a take-it-or-leave-it basis, commonly in a standardized printed form, without opportunity for the ‘adhering’ party to negotiate.” Rudbart, supra, 127 N.J. at 353, 605 A.2d 681 (citations omitted). Although a contract of adhesion may require one party to choose either to accept or reject the contract as is, the agreement nevertheless may be enforced. See id. at 353, 356-61, 605 A.2d 681 (noting such considerations as “the subject matter of the contract, the parties’ relative [*26] bargaining positions, the degree of economic compulsion motivating the ‘adhering’ party, and the public interests affected by the contract”). Plainly, courts can, and do, refuse to enforce an unconscionable contract of adhesion. See Muhammad v. County Bank of Rehoboth Beach, Del., 189 N.J. 1, 15, 912 A.2d 88 (2006). When making the determination that a contract of adhesion is unconscionable and unenforceable, we consider, using a sliding scale analysis, the way in which the contract was formed and, further, whether enforcement of the contract implicates matters of public interest. Delta Funding Corp. v. Harris, 189 N.J. 28, 39-40, 912 A.2d 104 (2006). 10
10 As Delta Funding, supra, exemplifies, a finding of a high level of procedural unconscionability alone may not render an entire agreement unenforceable. 189 N.J. at 40-41, 912 A.2d 104 (holding contract one of adhesion but not unenforceable, despite finding one party to possess greater sophistication and bargaining power).
Here, Powerhouse’s agreement was a standard pre-printed form presented to Stelluti and other prospective members on a typical “take-it-or-leave-it basis.” No doubt, this agreement was one of adhesion. As for the relative bargaining positions of the parties, [*27] see Rudbart, supra, 127 N.J. at 356, 605 A.2d 681, we assume that Stelluti was a layperson without any specialized knowledge about contracts generally or exculpatory ones specifically. Giving her the benefit of all inferences from the record, including that Powerhouse may not have explained to Stelluti the legal effect of the contract that released Powerhouse from liability, we nevertheless do not regard her in a classic “position of unequal bargaining power” such that the contract must be voided. As the Appellate Division decision noted, Stelluti could have taken her business to another fitness club, could have found another means of exercise aside from joining a private gym, or could have thought about it and even sought advice before signing up and using the facility’s equipment. No time limitation was imposed on her ability to review and consider whether to sign the agreement. In sum, although the terms of the agreement were presented “as is” to Stelluti, rendering this a fairly typical adhesion contract in its procedural aspects, we hold that the agreement was not void based on any notion of procedural unconscionability.
To the extent that any contract of adhesion also would require review to [*28] determine whether its enforcement implicates a matter of public interest, see ibid., that test overlaps, and is subsumed by the more precise analysis employed when assessing whether to enforce an exculpatory agreement. We therefore turn to consider the specific type of contract whose enforceability is the reason certification was granted in this appeal.
III.
[HN3] As a general and long-standing matter, contracting parties are afforded the liberty to bind themselves as they see fit. See Twin City Pipe Line Co. v. Harding Glass Co., 283 U.S. 353, 356, 51 S. Ct. 476, 477, 75 L. Ed. 1112, 1116 (1931) (“The general rule is that competent persons shall have the utmost liberty of contracting and that their agreements voluntarily and fairly made shall be held valid and enforced in the courts.”). See generally 11 Williston on Contracts § 30:9, at 96 (Lord ed., 4d ed. 1999). Out of respect for that very basic freedom, courts are hesitant to interfere with purely private agreements. See, e.g., Twin City Pipe Line Co., supra, 283 U.S. at 356-57, 51 S. Ct. at 477, 75 L. Ed. at 1116 (evaluating unenforceability with “caution”); Allen v. Commercial Cas. Ins. Co., 131 N.J.L. 475, 478, 37 A.2d 37 (E. & A. 1944) (finding [*29] freedom to contract “sacred,” and thus not to be interfered with “lightly” (citation omitted)); Chem. Bank v. Bailey, 296 N.J. Super. 515, 526-27, 687 A.2d 316 (App. Div.) (noting ability of parties to apportion risk of loss through contractual limitation of liabilities), certif. denied, 150 N.J. 28, 695 A.2d 671 (1997).
However, certain categories of substantive contracts, including those that contain exculpatory clauses, have historically been disfavored in law and thus have been subjected to close judicial scrutiny. See 11 Williston on Contracts, supra, § 30:9, at 103-04 (citing types of contractual provisions that require strict construction, including “forfeitures, penalties, provisions limiting a party’s legal rights, and provisions that depend for their validity or enforceability on the subjective judgment of one of the parties”). Our Court previously expressed a similar disfavor for such agreements and applied careful scrutiny to the interests involved. See Hojnowski v. Vans Skate Park, 187 N.J. 323, 333, 901 A.2d 381 (2006) (holding unenforceable parent’s execution of exculpatory agreement on behalf of child). That said, despite the warnings about disfavor and calls for careful scrutiny, we do enforce contracts that [*30] contain exculpatory clauses unless such provision proves adverse to the public interest. See Mayfair Fabrics v. Henley, 48 N.J. 483, 487, 226 A.2d 602 (1967).
In that consideration, [HN4] it has been held contrary to the public interest to sanction the contracting-away of a statutorily imposed duty. McCarthy v. NASCAR, Inc., 48 N.J. 539, 542, 226 A.2d 713 (1967). An agreement containing a pre-injury release from liability for intentional or reckless conduct also is plainly inconsistent with public policy. See Hojnowski, supra, 187 N.J. at 333, 901 A.2d 381. Beyond those clear parameters to inviolate public policy principles, the weighing process becomes opaque. The Appellate Division identified four considerations, pertinent to the enforcement of an exculpatory agreement, when rendering its decision in Gershon. The Gershon court said that an exculpatory agreement
will be enforced if (1) it does not adversely affect the public interest; (2) the exculpated party is not under a legal duty to perform; (3) it does not involve a public utility or common carrier; or (4) the contract does not grow out of unequal bargaining power or is otherwise unconscionable.
[Gershon, supra, 368 N.J. Super. at 248, 845 A.2d 720 (citations omitted).]
The Gershon test, used [*31] by the panel below, captures the essential features to be explored when considering whether enforcement of an exculpatory agreement would be contrary to public policy. Other courts in sister jurisdictions have developed similar tests. One, which originated with the Supreme Court of California in Tunkl v. Regents of the University of California, 60 Cal. 2d 92, 32 Cal. Rptr. 33, 383 P.2d 441, 445-46 (Cal. 1963), uses six inquiries 11 and it also has been identified as helpful. See Hojnowski, supra, 187 N.J. at 348, 901 A.2d 381 (LaVecchia, J., dissenting). Although slightly more nuanced, Tunkl’s considerations are not inconsistent with Gershon’s, and can provide additional guidance when applying the Gershon test that has been employed by our appellate courts and that we find acceptable also in the resolution of the instant exculpatory agreement. We thus turn to consider the specifics of the agreement.
11 Tunkl references the following inquiries as pertinent when determining whether to enforce an exculpatory agreement: 1) whether the agreement involves a business generally suitable for public regulation; 2) whether the exculpated party provides a service important and necessary to the public; 3) whether the exculpated party offers services [*32] to any person of the public seeking those services; 4) whether the exculpated party possesses a stronger bargaining power relative to the member of the public seeking services; 5) whether the exculpated party presents the member of the public with a contract of adhesion; and 6) whether the member of the public is under the control of the exculpated party and thus is subject to the careless risks of the more powerful party. Tunkl, supra, 383 P.2d at 445-46.
IV.
A.
[HN5] As a threshold matter, to be enforceable an exculpatory agreement must “reflect the unequivocal expression of the party giving up his or her legal rights that this decision was made voluntarily, intelligently and with the full knowledge of its legal consequences.” Gershon, supra, 368 N.J. Super. at 247, 845 A.2d 720 (citing Knorr v. Smeal, 178 N.J. 169, 177, 836 A.2d 794 (2003); Country Chevrolet, Inc. v. Twp. of N. Brunswick Planning Bd., 190 N.J. Super. 376, 380, 463 A.2d 960 (App. Div. 1983)). When a party enters into a signed, written contract, that party is presumed to understand and assent to its terms, unless fraudulent conduct is suspected. Rudbart, supra, 127 N.J. at 353, 605 A.2d 681.
The agreement in question explicitly stated that it covered “the sudden and unforeseen malfunctioning [*33] of any equipment, . . . use of all amenities and equipment in the facility and . . . participation in any activity, class, program, personal training or instruction.” In addition, the agreement explicitly covered negligence: “this release is also for negligence on the part of the Club, its agents, and employees.” Further, terms that limited Powerhouse’s liability — “entirely at your own risk,” “assume all risks,” and “release of liability,” — were set forth prominently in the written document that Stelluti signed and from which she now seeks to be excused. Although Stelluti argues that she did not know what she was signing, she does not claim that she signed the waiver form as the result of fraud, deceit, or misrepresentation. Therefore, the trial court was well within reason to presume that she understood the terms of the agreement, see ibid., and the finding to that effect is unassailable.
Furthermore, as we have already addressed and rejected Stelluti’s argument in respect of unequal bargaining power, we need address that aspect of Gershon’s inquiries no further. And, because Powerhouse is not a public utility or common carrier, that inquiry is inapplicable to our analysis. Besides [*34] not being such an entity, Powerhouse also was not providing a necessary service akin to that provided by a public utility or common carrier. Thus refined, our analysis in this matter turns on the first two inquiries identified in Gershon, supra: whether enforcement will implicate a matter of public interest and the related question of whether Powerhouse is under some legal duty to perform. 368 N.J. Super. at 248, 845 A.2d 720.
B.
[HN6] When considering whether enforcement of the instant exculpatory agreement would adversely affect the public interest, the inquiry naturally blends into an examination of whether the exculpated party is under a legal duty to perform. Exculpatory agreements that attempt to release liability for statutorily imposed duties have been held invalid. See, e.g., McCarthy, supra, 48 N.J. at 543, 226 A.2d 713 (holding exculpatory clause limiting liability arising out of car racing unenforceable due to statute regulating field and its expressed public policy in protecting participants and spectators). When the subject of an exculpatory agreement is not governed by statute, we also have considered common law duties in weighing relevant public policy considerations. See Hojnowski, supra, 187 N.J. at 335, 901 A.2d 381. [*35] To a certain extent, we cannot view Gershon’s public-interest inquiry separate from the question of whether there is a legal duty owed that is inviolate and non-waivable. In performing the weighing of public policy interests, then, we must take into account, in this private setting, both the extant common law duties and the right to freely agree to a waiver of a right to sue, which is part and parcel to the freedom to contract to which we earlier adverted. The mere existence of a common law duty does not mean that there is no room for an exculpatory agreement. In other words, our analysis begins from the starting point that public policy does not demand a per se ban against enforcement of an exculpatory agreement based on the mere existence of a duty recognized in the common law in respect of premises liability.
[HN7] It is well recognized that the common law imposes a duty of care on business owners to maintain a safe premises for their business invitees because the law recognizes that an owner is in the best position to prevent harm. See Nisivoccia v. Glass Gardens, Inc., 175 N.J. 559, 563, 818 A.2d 314 (2003); Kuzmicz v. Ivy Hill Park Apartments, Inc., 147 N.J. 510, 517, 688 A.2d 1018 (1997). That standard of care [*36] encompasses a duty “to guard against any dangerous conditions on [the] property that the owner either knows about or should have discovered[,] . . . [and] to conduct a reasonable inspection to discover latent dangerous conditions.” Hopkins v. Fox & Lazo Realtors, 132 N.J. 426, 434, 625 A.2d 1110 (1993) (citations omitted). That said, the law recognizes that for certain activities conducted by operation of some types of business, particularly those that pose inherent risks to the participant, the business entity will not be held liable for injuries sustained “so long as [the business] has acted in accordance with ‘the ordinary duty owed to business invitees, including exercise of care commensurate with the nature of the risk, foreseeability of injury, and fairness in the circumstances.'” Hojnowski, supra, 187 N.J. at 340-41, 901 A.2d 381 (citation omitted). When it comes to physical activities in the nature of sports — physical exertion associated with physical training, exercise, and the like — injuries are not an unexpected, unforeseeable result of such strenuous activity.
[HN8] Our Court recognized that reality associated with sports and sport activity when we held that some activities, due to their very nature, [*37] require the participant to assume some risk because injury is a common and inherent aspect of the activity. Crawn v. Campo, 136 N.J. 494, 500, 643 A.2d 600 (1994). In Crawn, we considered the duty of care owed to individuals who participate in informal recreational sports, softball in that particular instance. Id. at 497, 643 A.2d 600. We determined that the standard of care must exceed mere negligence because of the inherent risk of injury that cannot be eliminated through the exercise of reasonable care. Id. at 500, 643 A.2d 600. To determine the proper standard of care, we focused on the relationship between the participants and the nature of risk involved, specifying unique aspects of recreational activities such as the inherent and expected physical contact and high level of emotional intensity, both deemed appropriate when participating in those sports. Id. at 504, 643 A.d 600. We stressed the centrality of public policy and fairness in reaching our conclusion about the appropriate standard of care. Id. at 503, 643 A.2d 600. Two important public policies were identified: 1) “promotion of vigorous participation in athletic activities” as evidenced by pervasive interest and participation in recreational sports, and 2) the “avoid[ance of] a flood [*38] of litigation.” Id. at 501, 643 A.2d 600. That said, those interests do not completely immunize participants. Id. at 503-04, 643 A.2d 600. [HN9] Participants retain a duty to participate in a reasonable manner, with regard for other players, and also in a way that fits with the common expectations of acceptable conduct for the activity. Id. at 501, 507, 643 A.2d 600. Thus, the Crawn decision held that “liability arising out of mutual, informal, recreational sports activity should not be based on a standard of ordinary negligence but on the heightened standard of recklessness or intent to harm,” Id. at 503, 643 A.2d 600, a standard that “recognizes a commonsense distinction between excessively harmful conduct and the more routine rough-and-tumble of sports that should occur freely on the playing fields.” Id. at 508, 643 A.2d 600. Application of that standard later was extended to sports that do not involve physical contact. See Schick v. Ferolito, 167 N.J. 7, 18, 767 A.2d 962 (2001) (upholding recklessness standard to the game of golf, finding “no persuasive reasons to apply an artificial distinction between ‘contact’ and ‘noncontact’ sports”).
[HN10] Assumption of risk associated with physical-exertion-involving discretionary activities is sensible and has been applied in many [*39] other settings, including by the Legislature with reference to certain types of recreational activities. Recognizing that some activities involve a risk of injury and thus require risk sharing between participants and operators, the Legislature has enacted statutes that delineate the allocation of risks and responsibilities of the parties who control and those who participate in some of those activities. See N.J.S.A. 5:13-1 to -11 (Ski Act); N.J.S.A. 5:14-1 to -7 (Roller Skating Rink Safety and Fair Liability Act); N.J.S.A. 5:15-1 to -12 (Equine Act). Although no such action has been taken by the Legislature in respect of private fitness centers, that does not place the common sense of a risk-sharing approach beyond the reach of commercial entities involved in the business of providing fitness equipment for patrons’ use. The sense behind that approach does not make it unreasonable to employ exculpatory agreements, within limits, in private contractual arrangements between fitness centers and their patrons.
An exculpatory agreement that covered a unique form of recreational activity was considered previously in Hojnowski, supra, where we held unenforceable an exculpatory agreement executed [*40] by a parent on behalf of a minor seeking to use a skateboarding facility. 187 N.J. at 338, 901 A.2d 381. The relevant public policy implicated by that case centered on the state’s parens patriae power over minors and the need to encourage commercial recreational facilities that attract children to take reasonable steps to ensure children’s safety. Id. at 333-38, 901 A.2d 381. Due to the perceived public interest in that unique context, we concluded that the exculpatory agreement would not bar the minor’s tort claim. Id. at 338, 901 A.2d 381. Importantly, the Court’s holding treated skateboarding as a non-essential activity that did not implicate the public interest. Id. at 347-48, 901 A.2d 381 (LaVecchia, J., dissenting). Further, we did not decide whether the exculpatory agreement would be valid if executed and enforced against an adult. Id. at 347, 901 A.2d 381. The decision in Hojnowski does not stand for the proposition that there exists a per se ban, based on the common law duty owed to business invitees concerning premises liability, against the enforcement of an exculpatory agreement in personal recreational-type activities including, as here, private fitness centers. Thus, in considering Gershon’s legal-duty question and whether the public interest [*41] would be adversely affected by enforcement of the instant exculpatory agreement, we find it necessary to engage in a balancing of all relevant public-policy interests. 12
12 The dissent conflates those two considerations by arguing, in substance, that it is contrary to the public interest even to allow for an exculpation provision that pertains to premises liability under the common law. Indeed, the dissent goes even further, by converting Gershon’s first inquiry into a requirement that the exculpatory agreement serve the public interest. See post at (slip op. at 16). Plainly, that recharacterization does not fairly reflect our jurisprudence.
C.
To properly balance the public-policy interests implicated in the instant matter one must consider the nature of the activity and the inherent risks involved. 13 Engaging in physical activity, particularly in private gyms and health clubs is commonplace in today’s society. The United States Bureau of Labor estimates that over the next decade jobs for physical fitness workers will increase faster than other occupations due to the increasing recognition of health benefits associated with physical activity and, consequently, increase the amount [*42] of time and money spent on fitness. U.S. Dep’t of Labor, Bureau of Labor Statistics: Occupational Outlook Handbook 3 (2010-11), http://www.bls.gov/oco/pdf/ocos296.pdf.
13 Our focus here substantially contemplates one of Tunkl’s inquiries, specifically whether the member of the public is under the control of the exculpated party and thus subject to the careless risks by the more powerful party. See Tunkl, supra, 383 P.2d at 445-46. That question takes into account the patron’s opportunity for self-protection, which removes the possibility that the injury could only be prevented by the operator. See Robert Heidt, The Avid Sportsman and the Scope for Self-Protection: When Exculpatory Clauses Should be Enforced, 38 U. Rich. L. Rev. 381, 460-73 (2004).
By its nature, exercising entails vigorous physical exertion. 14 Injuries from exercise are common; indeed minor injuries can be expected — for example, sore muscles following completion of a tough exercise or workout may be indicative of building or toning muscles. Those injuries and others may result from faulty equipment, improper use of equipment, inadequate instruction, inexperience or poor physical condition of the user, or excessive [*43] exertion. See Thomas M. Fleming, Annotation, Liability of Proprietor of Private Gymnasium, Reducing Salon, or Similar Health Club for Injury to Patron, 79 A.L.R.4th 127, § 2[a] (1990).
14 The dictionary defines the term “exercise” as “[a]ctivity requiring physical or mental exertion, esp. when performed to maintain or develop fitness.” Webster’s II New College Dictionary 392 (2d ed. 1999).
[HN11] Although there is public interest in holding a health club to its general common law duty to business invitees — to maintain its premises in a condition safe from defects that the business is charged with knowing or discovering — it need not ensure the safety of its patrons who voluntarily assume some risk by engaging in strenuous physical activities that have a potential to result in injuries. Any requirement to so guarantee a patron’s safety from all risk in using equipment, which understandably is passed from patron to patron, could chill the establishment of health clubs. Health clubs perform a salutary purpose by offering activities and equipment so that patrons can enjoy challenging physical exercise. There has been recognized a “positive social value” in allowing gyms to limit their liability [*44] in respect of patrons who wish to assume the risk of participation in activities that could cause an injury. See Robert Heidt, The Avid Sportsman and the Scope for Self-Protection: When Exculpatory Clauses Should be Enforced, 38 U. Rich. L. Rev. 381, 389 (2004). And, further, it is not unreasonable to encourage patrons of a fitness center to take proper steps to prepare, such as identifying their own physical limitations and learning about the activity, before engaging in a foreign activity for the first time.
However, [HN12] just as we held in Crawn, supra, that there remains a standard for liability even in contact recreational sports, albeit a heightened one, 136 N.J. at 503-04, 643 A.2d 600, there is also a limit to the protections that a private fitness center reasonably may exact from its patrons through the mechanism of an exculpatory agreement. Although it would be unreasonable to demand that a fitness center inspect each individual piece of equipment after every patron’s use, it would be unreasonable, and contrary to the public interest, to condone willful blindness to problems that arise with the equipment provided for patrons’ use. 15 Thus, had Powerhouse’s management or employees been aware [*45] of a piece of defective exercise equipment and failed to remedy the condition or to warn adequately of the dangerous condition, or if it had dangerously or improperly maintained equipment, Powerhouse could not exculpate itself from such reckless or gross negligence. That showing was not made on this record.
15 Indeed, even in those areas where the Legislature has imposed an assumption of risk by patrons of some recreational activities, certain common risks were legislatively retained for operators of such facilities. See N.J.S.A. 5:13-1 to -11 (ski facilities); N.J.S.A. 5:14-1 to -7 (roller rinks); N.J.S.A. 5:15-1 to -12 (providers of equestrian activities). Importantly, among those risks were knowingly providing equipment that is faulty to the extent that it causes or contributes to injury; liability for injuries by a known dangerous latent condition on property for which warning signs have not been posted; and intentional injuries caused by the operator. Guided by the Legislature’s own sense of operator risk that cannot be shirked, we regard such knowing and intentional acts of negligence as equivalent to the gross negligence that has been historically beyond the reach of exculpatory [*46] agreements.
As previously noted, the Appellate Division specifically found that the record was barren of evidence that Powerhouse had neglected over time to maintain its equipment. Stelluti, supra, 408 N.J. Super. at 460-61, 975 A.2d 494 (finding absence of any “chronic or repetitive patterns of inattention to the safety of the equipment”). There simply was no evidence in this record rising to such reckless or gross negligence in respect of Powerhouse’s duty to inspect and maintain its equipment. Thus, we do not share the concern voiced by the dissent. Our decision cannot reasonably be read to signal that health clubs will be free to engage in “chronic or repetitive patterns of inattention to the safety of the[ir] equipment.” Ibid. Nor do we share the dissent’s view that today’s holding gives a green light to permit widespread use of exculpatory agreements in restaurants, malls, and supermarkets. That extrapolation fails to account for our careful examination into the relevant nature of the type of activity that takes place in a private health club.
In sum, the standard we apply here places in fair and proper balance the respective public-policy interests in permitting parties to freely contract in [*47] this context (i.e. private fitness center memberships) and requires private gyms and fitness centers to adhere to a standard of conduct in respect of their business. Specifically, we hold such [HN13] business owners to a standard of care congruent with the nature of their business, which is to make available the specialized equipment and facility to their invitees who are there to exercise, train, and to push their physical limits. That is, we impose a duty not to engage in reckless or gross negligence. We glean such prohibition as a fair sharing of risk in this setting, which is also consistent with the analogous assumption-of-risk approach used by the Legislature to allocate risks in other recreational settings with limited retained-liability imposed on operators.
D.
In the instant matter, like the Appellate Division, we feel no obligation to reach and discuss the validity of other aspects of the agreement not squarely presented by the facts of Stelluti’s case. Thus, we need not address the validity of the agreement’s disclaimer of liability for injuries that occur on the club’s sidewalks or parking lot that are common to any commercial enterprise that has business invitees. With respect [*48] to its agreement and its limitation of liability to the persons who use its facility and exercise equipment for the unique purpose of the business, we hold that it is not contrary to the public interest, or to a legal duty owed, to enforce Powerhouse’s agreement limiting its liability for injuries sustained as a matter of negligence that result from a patron’s voluntary use of equipment and participation in instructed activity. As a result, we find the exculpatory agreement between Powerhouse and Stelluti enforceable as to the injury Stelluti sustained when riding the spin bike.
V.
For the foregoing reasons, we affirm the judgment of the Appellate Division that sustained the award of summary judgment to defendant.
CHIEF JUSTICE RABNER and JUSTICES WALLACE, RIVERA-SOTO, and HOENS join in JUSTICE LaVECCHIA’s opinion. JUSTICE ALBIN filed a separate dissenting opinion in which JUSTICE LONG joins.
DISSENT BY: ALBIN
DISSENT
JUSTICE ALBIN, dissenting.
Today the Court has abandoned its traditional role as the steward of the common law. For the first time in its modern history, the Court upholds a contract of adhesion with an exculpatory clause that will allow a commercial, profit-making company to operate negligently [*49] — injuring, maiming, and perhaps killing one of its consumer-patrons — without consequence. Under the Court’s ruling, a health club will have no obligation to maintain its equipment in a reasonably safe manner or to require its employees to act with due care toward its patrons. That is because, the Court says, a health club patron has the right to contract not only for unsafe conditions at a health club, but also for careless conduct by its employees. The Court’s decision will ensure that these contracts of adhesion will become an industry-wide practice and that membership in health clubs will be conditioned on powerless consumers signing a waiver immunizing clubs from their own negligence. The Court’s ruling undermines the common-law duty of care that every commercial operator owes to a person invited on to its premises.
Without the incentive to place safety over profits, the cost to the public will be an increase in the number of avoidable accidents in health clubs. And like the plaintiff in this case, the victims of the clubs’ negligence will suffer the ultimate injustice — they will have no legal remedy.
Tens of thousands of New Jersey citizens join health clubs to stay healthy [*50] — to reduce the prospect of suffering from heart disease or a stroke, to battle obesity, and to improve the likelihood of living a longer life. The irony is that those who seek to live a better lifestyle through membership at a health club, now, will have a greater likelihood of having their well-being impaired through the careless acts of a club employee.
The ruling today is not in the public interest, not consistent with this Court’s long-standing, progressive common-law jurisprudence protecting vulnerable consumers, and not in step with the enlightened approaches taken by courts of other jurisdictions that have barred the very type of exculpatory clause to which this Court gives its imprimatur.
Because in upholding the exculpatory agreement the Court wrongly dismisses the case of plaintiff, Gina Stelluti, I respectfully dissent.
I.
Ms. Stelluti’s case was dismissed by the trial court on defendant’s motion for summary judgment. Therefore, in reviewing the correctness of that decision, the facts must be viewed in the light most favorable to her. Senna v. Florimont, 196 N.J. 469, 475 n.1, 958 A.2d 427 (2008); see also R. 4:46-2(c). Those facts present a cautionary tale.
On January 13, 2004, Gina Stelluti, [*51] then thirty-nine years old, joined the Powerhouse Gym (also referred to as Powerhouse Fitness and the Club) in Brick, New Jersey. 1 She arrived at the Club that day at 8:30 a.m., intending to participate in the 8:45 a.m. spin class. Before the spin class, with the assistance of a Powerhouse employee, Ms. Stelluti completed a “Membership Agreement” form, a “Member Information” form, a “Health/Safety Consent” form, and a “Powerhouse Fitness (The Club) Waiver & Release Form.” As a condition of membership, she agreed to pay an enrollment fee and monthly fees. The waiver form signed by Ms. Stelluti released Powerhouse from liability for any injury she might suffer regardless of Powerhouse’s fault. Powerhouse immunized itself from liability even if it caused serious bodily injury or death through the negligent maintenance of its equipment or the careless acts of its instructors and other employees. The waiver form was not explained to Ms. Stelluti. No one disputes that the contract was non-negotiable and offered on a take-it-or-leave-it basis, the very essence of a contract of adhesion. 2
1 Powerhouse Gym is the trade name for the health club operated by defendant Casapenn Enterprises, LLC.
2 “[T]he [*52] essential nature of a contract of adhesion is that it is presented on a take-it-or-leave-it basis, commonly in a standardized printed form, without opportunity for the ‘adhering’ party to negotiate except perhaps on a few particulars.” Rudbart v. N. Jersey Dist. Water Supply Comm’n and First Fid. Bank, 127 N.J. 344, 353, 605 A.2d 681 (citations omitted), cert. denied, 506 U.S. 871, 113 S. Ct. 203, 121 L. Ed. 2d 145 (1992).
Fifteen minutes after her arrival and completion of the paperwork, Ms. Stelluti was in the spin class. She informed the Powerhouse instructor that she had never taken a spin class before. The instructor told Ms. Stelluti to watch her during the class. The instructor strapped Ms. Stelluti’s feet into the bicycle and adjusted the bicycle seat. The class began, and shortly afterwards the handlebars to Ms. Stelluti’s bicycle came flying off, causing Ms. Stelluti to fall forward onto the floor while her feet were still strapped to the bike. Ms. Stelluti’s physical-education expert concluded that the accident occurred because Powerhouse’s instructor did not properly supervise or instruct Ms. Stelluti concerning the handlebars’ “snap pin” adjustment to the spin bicycle. In short, this [*53] avoidable accident occurred because the instructor carelessly forgot to make certain that the bicycle’s handlebars were secured.
As a result of her injuries, Ms. Stelluti suffered pain to her back, neck, and shoulders, and soreness in her thighs. She also sustained a cracked tooth. Ms. Stelluti, a waitress, had no health insurance and received treatment through charity-care facilities located at Community Medical Center in Toms River, Ocean Medical Center, and Jersey Shore University Medical Center. Three years after the accident, a board certified orthopedist offered his opinion that Ms. Stelluti suffered from “permanent chronic pain associated with myofascial pain syndrome.”
Ms. Stelluti filed a lawsuit against Powerhouse, alleging that its negligence caused the accident. More specifically, she claims that Powerhouse failed to maintain the spin bicycle in a safe manner, to give her proper instructions in the use of the equipment, and to use due care in supervising her during the spin class.
The trial court upheld the exculpatory clause against Ms. Stelluti’s claims and granted Powerhouse’s motion for summary judgment. The Appellate Division affirmed, concluding that Powerhouse’s contract [*54] of adhesion exculpated it from ordinary negligence. 408 N.J. Super. 435, 448, 459, 975 A.2d 494 (App. Div. 2009). The appellate panel held that “at least with respect to equipment being used at the club in the course of an exercise class or other athletic activity, the exculpatory agreement’s disclaimer of liability for ordinary negligence is reasonable and not offensive to public policy.” Id. at 459, 975 A.2d 494. The panel found that “[t]he fact that the class instructor may not have checked or tightened plaintiff’s handlebars does not amount to anything worse than an unfortunate and perhaps careless omission” and that if “the pin was left in a non-secure position overnight by the club’s maintenance or cleaning crew, that only would comprise an isolated act of simple negligence.” Id. at 460, 975 A.2d 494.
I cannot conclude that the “careless omission” — the failure to properly instruct Ms. Stelluti or to maintain equipment in a safe condition — is beyond the protection of our common law, merely because Powerhouse compels a patron to sign an exculpatory clause. Powerhouse’s “simple negligence” has had lasting, painful consequences for Ms. Stelluti, a first-time participant at the health club’s spin class. Additionally, Ms. [*55] Stelluti did not have the burden of proving that Powerhouse committed multiple acts of negligence against an assortment of patrons. It should have been enough that Powerhouse committed an act of negligence against Ms. Stelluti. Typically, a plaintiff prosecuting a personal-injury lawsuit need show only that she suffered from an act of negligence; she is not required to establish that the act was part of a larger pattern of negligence. Negligence has been defined as
[the] failure to exercise, in the given circumstances, that degree of care for the safety of others, which a person of ordinary prudence would exercise under similar circumstances. It may be the doing of an act which the ordinary prudent person would not have done, or the failure to do that which the ordinary prudent person would have done, under the circumstances then existing.
[Model Jury Charge (Civil), Negligence and Ordinary Care — General § 5.10A(1) (pre-1984).]
This Court must assume, for purposes of the summary judgment motion, that Powerhouse was negligent. Like the appellate panel, the Court concludes that Ms. Stelluti’s signature on the waiver form exculpates Powerhouse from its own lack of due care. That legal [*56] conclusion flies in the face of the progressive development of the common law by this Court over the course of decades.
II.
A.
“Exculpatory agreements have long been disfavored in the law because they encourage a lack of care.” Hojnowski v. Vans Skate Park, 187 N.J. 323, 333, 901 A.2d 381 (2006) (emphasis added) (citations omitted). “For that reason, courts closely scrutinize liability releases and invalidate them if they violate public policy.” Ibid. (citation omitted); see also Carvalho v. Toll Bros. & Developers, 143 N.J. 565, 578, 675 A.2d 209 (1996) (“[C]ourts will not enforce an exculpatory clause if . . . exoneration of the party would adversely affect the public interest.” (citation and internal quotation marks omitted)); Mayfair Fabrics v. Henley, 48 N.J. 483, 487, 226 A.2d 602 (1967) (“[W]here there is unequal bargaining power, the public interest may call for rejection of an exculpatory clause exacted by the dominant party . . . .”). Public policy is expressed not only in legislation, but also through the common law as developed by this Court. See Vasquez v. Glassboro Serv. Ass’n, Inc., 83 N.J. 86, 98, 415 A.2d 1156 (1980).
A common-law duty — such as the duty to exercise reasonable care in maintaining commercial premises open [*57] to consumers — is “derive[d] from considerations of public policy and fairness.” Hopkins v. Fox & Lazo Realtors, 132 N.J. 426, 439, 625 A.2d 1110 (1993) (citation omitted). Under our common law, business owners owe “a duty of reasonable or due care to provide a safe environment” to their patrons and “to discover and eliminate dangerous conditions” on their premises. Nisivoccia v. Glass Gardens, Inc., 175 N.J. 559, 563, 818 A.2d 314 (2003). Because business owners are in the best position to prevent the risk of harm to their customers, it is fair they should be responsible for injuries caused by their negligence. See Hojnowski, supra, 187 N.J. at 335, 901 A.2d 381. Unlike the customer, “[t]he operator of a commercial recreational enterprise can inspect the premises for unsafe conditions, train his or her employees with regard to the facility’s proper operation, and regulate the types of activities permitted to occur.” Ibid. The customer has no ability or right to control commercial premises, and therefore allowing a business owner to transfer the risk to the customer would undermine the very purpose of our premises-liability law. See Dalury v. S-K-I, Ltd., 164 Vt. 329, 670 A.2d 795, 799 (Vt. 1995).
“No contract can be sustained if it is [*58] inconsistent with the public interest or detrimental to the common good.” Vasquez, supra, 83 N.J. at 98, 415 A.2d 1156 (citation omitted). That is true whether the contract violates a statutory or common-law duty. The common law is not an inferior kind of law, as is suggested by the Court’s opinion today. The Legislature may enact a statute that alters or overrides the common law, but until such time the common law holds no lesser status than a statute when it commands that a duty be obeyed.
In the past, this Court has struck down exculpatory clauses that violated public policy, expressed either in the common law or a statute, particularly when there was inequality in bargaining power between the parties to the contract. See, e.g., Hojnowski, supra, 187 N.J. at 338, 901 A.2d 381 (holding that “a parent’s execution of a pre-injury release of a minor’s future tort claims arising out of the use of a commercial recreational facility is unenforceable”); Carvalho, supra, 143 N.J. at 569, 578-79, 675 A.2d 209 (striking down exculpatory agreements between construction site engineer, township, and developer that exonerated engineer from liability to injured construction worker); McCarthy v. NASCAR, Inc., 48 N.J. 539, 540-43, 226 A.2d 713 (1967) (striking [*59] down exculpatory agreement between NASCAR and racecar driver injured in accident as contrary to public policy expressed in statutory scheme); Henningsen v. Bloomfield Motors, Inc., 32 N.J. 358, 364-67, 377, 403-04, 161 A.2d 69 (1960) (invalidating contractual provision exculpating manufacturer from liability for personal injury to purchaser of automobile). Cf. Horelick v. Pa. R.R. Co., 13 N.J. 349, 357, 99 A.2d 652 (1953) (noting in common carrier case that “[f]or negligent failure to discharge such responsibility to its passengers, the [Railroad] would seemingly be accountable even if the tickets issued by it had contained express provision to the contrary”); Blauvelt v. Citizens Trust Co., 3 N.J. 545, 554-55, 71 A.2d 184 (1950) (noting that New Jersey “courts have applied a strict construction to such exculpatory clauses . . . and have said that they do not relieve a trustee of liability where a loss results from negligence in the administration of the trust,” but finding no negligence (internal citations omitted)).
On the other hand, this Court has recognized that sophisticated commercial entities, exercising equal bargaining power, are capable of protecting their own interests. See, e.g., Brunswick Hills Racquet Club, Inc. v. Route 18 Shopping Ctr. Assocs., 182 N.J. 210, 230, 864 A.2d 387 (2005) [*60] (“Ordinarily, we are content to let experienced commercial parties fend for themselves and do not seek to ‘introduce intolerable uncertainty into a carefully structured contractual relationship’ by balancing equities.” (citation omitted)). Thus, this Court has upheld an exculpatory clause in a contract between a commercial landlord and commercial tenant, who were not in unequal bargaining positions, and allowed them to distribute risk between themselves as they saw fit. Mayfair Fabrics, supra, 48 N.J. at 488-90, 226 A.2d 602.
B.
Never before in the modern era has this Court upheld an exculpatory clause in which a commercial enterprise protects itself against its own negligence at the expense of a consumer, who had no bargaining power to alter the terms of the contract. The high courts of other states have struck down exculpatory clauses similar to the type that our Court now validates. See, e.g., Hanks v. Powder Ridge Rest. Corp., 276 Conn. 314, 885 A.2d 734, 741-42, 747-48 (Conn. 2005) (finding that exculpatory agreement releasing recreational snowtube operator from prospective liability caused by operator’s negligence violates public policy and therefore is unenforceable); Dalury v. S-K-I, Ltd., 164 Vt. 329, 670 A.2d 795, 796 (Vt. 1995) [*61] (invalidating contractual agreement exculpating ski operator from liability for its negligence in personal-injury claim brought by patron); Hiett v. Lake Barcroft Cmty. Ass’n, Inc., 244 Va. 191, 418 S.E.2d 894, 895-96, 8 Va. Law Rep. 3381 (Va. 1992) (invalidating pre-injury release clause exculpating community association from its negligence in allegedly causing injury in swimming portion of athletic event).
Under Virginia’s common law, contractual “provisions for release from liability for personal injury which may be caused by future acts of negligence are prohibited ‘universally.'” Hiett, supra, 418 S.E.2d at 896-97 (citation omitted). Since 1890, Virginia’s law has held that one party cannot “put the other parties to the contract at the mercy of its own misconduct” because “[p]ublic policy forbids it, and contracts against public policy are void.” Id. at 896 (quoting Johnson’s Adm’x v. Richmond & D. R. Co., 86 Va. 975, 11 S.E. 829, 829 (Va. 1890)). The 1890 Virginia Supreme Court found that exculpatory agreements are barred “where an enlightened system of jurisprudence prevails.” Johnson’s Adm’x, supra, 11 S.E. at 829.
The Vermont Supreme Court in Dalury held “that the exculpatory agreements which defendants require [*62] skiers to sign, releasing defendants from all liability resulting from negligence, are void as contrary to public policy.” 670 A.2d at 796. Vermont’s high court concluded that enforcing such an exculpatory agreement would undermine the state’s premises-liability law. Id. at 799. It further explained:
The policy rationale is to place responsibility for maintenance of the land on those who own or control it, with the ultimate goal of keeping accidents to the minimum level possible. Defendants, not recreational skiers, have the expertise and opportunity to foresee and control hazards, and to guard against the negligence of their agents and employees. They alone can properly maintain and inspect their premises, and train their employees in risk management. They alone can insure against risks and effectively spread the cost of insurance among their thousands of customers. Skiers, on the other hand, are not in a position to discover and correct risks of harm, and they cannot insure against the ski area’s negligence.
[Ibid.]
The Connecticut Supreme Court agreed with the reasoning of Dalury in striking down an exculpatory agreement immunizing a snowtube operator from its own negligence. Hanks, supra, 885 A.2d at 743-46. [*63] Connecticut’s high court observed that “[t]he societal expectation that family oriented recreational activities will be reasonably safe is even more important where . . . patrons are under the care and control of the recreational operator as a result of an economic transaction.” Id. at 744. It also noted that “it is illogical to permit snowtubers, and the public generally, to bear the costs of risks that they have no ability or right to control.” Id. at 745.
In New York, by statute, exculpatory agreements that exempt gymnasiums and other similar recreational facilities from liability for their negligence are “void as against public policy and wholly unenforceable.” N.Y. Gen. Oblig. Law § 5-326 (2010). 3
3 N.Y. Gen. Oblig. Law § 5-326 (2010) declares that exculpatory agreements
between the owner or operator of any pool, gymnasium, place of amusement or recreation, or similar establishment and the user of such facilities, pursuant to which such owner or operator receives a fee or other compensation for the use of such facilities, which exempts the said owner or operator from liability for damages caused by or resulting from the negligence of the owner, operator or person in charge of such [*64] establishment, or their agents, servants or employees, shall be deemed to be void as against public policy and wholly unenforceable.
These cases, as well as the New York statute, show that the right to contract should be subordinate to the greater public interest.
C.
Unlike health clubs, the allocation of risks between ski operators, roller skating rinks, equine establishments, and their customers is governed by statute, not the common law. See N.J.S.A. 5:13-1 to -11 (ski statute); N.J.S.A. 5:14-1 to -7 (Roller Skating Rink Safety and Fair Liability Act); N.J.S.A. 5:15-1 to -12 (Equine Act). However, even in those statutes, the Legislature has not suggested that commercial operators in those fields can exempt themselves from liability through the use of exculpatory clauses.
Moreover, the Legislature has seen no need to give health clubs the power to immunize themselves from their own negligence. Indeed, as part of the Consumer Fraud Act, N.J.S.A. 56:8-1 to -181 (N.J.S.A. 56:8-1 to -195 as of December 1, 2010), the Legislature has given consumers statutory protection from unscrupulous health club service contracts. N.J.S.A. 56:8-39 to -48. Nowhere in that statutory scheme does the Legislature give approval to a health club to insert an [*65] exculpatory clause in a contract of adhesion — the ultimate device by which a commercial interest, through the use of superior bargaining power, forces consumers to accept terms contrary to their best interests.
It is hard to imagine how the public interest could be served by permitting health clubs to exempt themselves from the common law governing premises liability. Tens of thousands of people in this State go to health clubs to maintain healthy lifestyles and to improve their health. See Active Marketing Group, 2007 Health Club Industry Review 5-6 (2007), available at http://activemarketinggroup.com/AssetFactory.aspx?did=32 (estimating that as of 2005, New Jersey had more than 1000 health clubs, and that 16.6% of its population belonged to one); Miriam A. Cherry, Exercising the Right to Public Accommodations: The Debate over Single-Sex Health Clubs, 52 Me. L. Rev. 97, 103 (2000) (noting reasons why people attend health clubs). In 2006, the Legislature made a finding that “as many as 30 million people now visit health and exercise centers in this country.” N.J.S.A. 2A:62A-30(d).
The benefits of exercise are beyond dispute. The Surgeon General has declared “that Americans can substantially [*66] improve their health and quality of life by including moderate amounts of physical activity in their daily lives.” U.S. Dep’t of Health and Human Servs., Physical Activity and Health: A Report of the Surgeon General 3 (1996), available at http://www.cdc.gov/nccdphp/sgr/pdf/sgrfull.pdf. Moreover, the United States Department of Health and Human Services has found that “[b]eing physically active is one of the most important steps that Americans of all ages can take to improve their health” and that “[r]egular physical activity reduces the risk of many adverse health outcomes.” 2008 Physical Activity Guidelines for Americans, at vi, available at http://www.health.gov/paguidelines/pdf/paguide.pdf. The health benefits of exercise include lower risks of early death, coronary heart disease, stroke, high blood pressure, obesity, adverse blood lipid profile, type 2 diabetes, metabolic syndrome, colon cancer, and breast cancer, to name a few. Id. at 9. Some health clubs even have rehabilitation/physical therapy programs for accident or stroke victims.
Whatever the Court says in its opinion, people will continue to go to health clubs, even if they are compelled to sign away their rights in a contract [*67] of adhesion. Most people do not have at their individual disposal the sophisticated exercise machinery and equipment, indoor tracks, pools, and trainers offered at health clubs. Gina Stelluti is a perfect example — a waitress without health insurance, who could not possibly afford to purchase the equipment available at a health club.
Ms. Stelluti does not claim that Powerhouse should be the general guarantor for every injury suffered in its facility. This case is not about a health club patron asserting that the facility is legally responsible for an injury caused by over-exertion, misuse of equipment, or from the act of another patron over whom the club has no control. Rather, Ms. Stelluti merely argues that a health club should be held responsible if it does not maintain its equipment in a reasonably safe manner and if its instructors do not exercise due care — matters over which a club does have control. It is one thing to assume a risk of which one is aware. It is another thing to say, as the Court does, that one should assume the risk for a dangerous condition of which one is unaware and over which one has no control. That health club members should assume the risk, as suggested [*68] by the Court, for the club’s failure to inspect and maintain its equipment in a reasonably safe condition runs completely contrary to the rationale underlying our common law governing premises liability.
D.
Tort law is not just about compensating victims, but also about preventing accidents. By allowing a health club to eliminate its duty to exercise a reasonable degree of care, the majority has decreased the incentives for health clubs to provide a reasonably safe environment for their patrons. This will inevitably lead to more preventable accidents. Because health clubs will not have a legal incentive to maintain their equipment in a reasonably safe manner, how many cases will there be of handlebars flying off of spin bikes, of cables to weight machines breaking, of pools mistakenly treated with the wrong amounts or kinds of chemicals? Increasing profits is the dominant force motivating most commercial establishments; increasing public safety had been one of the objectives of tort law.
Powerhouse has not introduced any evidence that striking down the exculpatory clause will lead to an exorbitant financial expense or that increased insurance premiums cannot be minimally passed along [*69] to patrons. Hojnowski, supra, 187 N.J. at 335-36, 901 A.2d 381 (noting that commercial recreational operators can “spread the costs of insurance among its customers”). Our Court did not permit an automobile manufacturer — through an exculpatory clause in a contract — to immunize itself for personal injury caused by a defective car in Henningsen, supra, 32 N.J. at 365-67, 404, 161 A.2d 69, although building safer cars arguably might cost more. Encouraging safely built automobiles was in the public interest. Safer cars result in fewer serious injuries and deaths, and presumably fewer lawsuits. Similarly, invalidating exculpatory clauses that insulate health clubs from their own negligence will encourage health club owners to keep their premises reasonably safe, which will result in fewer injuries and deaths, and fewer lawsuits.
There is a simple logic behind the law of premises liability: when business owners exercise due care, there are fewer accidents; when there are fewer accidents, there are fewer lawsuits; when there are fewer lawsuits, insurance premiums are more likely to go down rather than up. See, e.g., David A. Hyman & Charles Silver, The Poor State of Health Care Quality in the U.S.: Is Malpractice [*70] Liability Part of the Problem or Part of the Solution?, 90 Cornell L. Rev. 893, 917-20 (2005) (detailing how tort liability and high insurance premiums led anesthesiologists to enact reforms, and “[a]s anesthesia became safer, lawsuits against anesthesiologists became less frequent and liability premiums for anesthesiologists declined significantly”).
Not only is it unfair to saddle a blameless patron with the costs of the club’s negligence, but we must recognize that the costs of preventable injuries are shouldered by society in many different ways, including through unemployment insurance, social services, and increased health-care costs. Ms. Stelluti — a victim without health insurance — is a case in point. Although her injuries were caused by the negligence of a commercial, profit-making entity, the State, which subsidizes charity care, will pick up a good part of the cost of her medical bills.
E.
Finally, the Court relegates the common law to second-class status, allowing a contract of adhesion to eviscerate protections intended to safeguard the health and lives of consumers. In doing so, the Court has revived the discredited doctrine that the right to contract trumps the public [*71] interest — in this case, the public interest expressed in the common law. The Court’s decision brings to mind the Lochner era of the early twentieth century when the United States Supreme Court struck down social-welfare legislation under the banner of the right to contract. See, e.g., Lochner v. New York, 198 U.S. 45, 57-58, 64, 25 S. Ct. 539, 543-44, 546, 49 L. Ed. 937, 941-42, 944-45 (1905) (striking down state law that regulated maximum number of hours bakers could work); Adkins v. Children’s Hosp. of D.C., 261 U.S. 525, 539, 545, 561-62, 43 S. Ct. 394, 395-97, 402-03, 67 L. Ed. 785, 789, 791, 798 (1923) (striking down legislation setting minimum wages for women and children in District of Columbia). In time, the Supreme Court rejected the Lochner-era right-to-contract philosophy that was used to invalidate legislation advancing the public welfare. See Lincoln Fed. Labor Union v. Nw. Iron & Metal Co., 335 U.S. 525, 536-37, 69 S. Ct. 251, 257, 93 L. Ed. 212, 221 (1949).
The right to contract is not a blank check for commercial interests to impose conditions on consumers through exculpatory clauses that violate the public’s health and safety. The adverse effects of today’s decision [*72] may be far-reaching and long felt. Other commercial entities may see this case as a signal that exculpatory clauses, extracted through contracts of adhesion, may apply to their industries, trades, and professions. If health club owners can protect themselves from their own negligence, why wouldn’t malls, supermarkets, and restaurants do the same?
III.
The exculpatory clause to which the Court gives its blessing should be void as against public policy. That is so because the exculpatory clause in this case unfairly allocates the risk from the commercial operator, who is in the best position to remove and prevent the dangers on the premises, to the unwary patron, and because it encourages lack of due care. Exalting the right to contract — a contract of adhesion, no less — over the public interest is not in keeping with this Court’s development of a progressive and enlightened common law.
I therefore respectfully dissent.
JUSTICE LONG joins in this opinion.
Troxel v. Granville, 530 U.S. 57; 120 S. Ct. 2054; 147 L. Ed. 2d 49; 2000 U.S. LEXIS 3767; 68 U.S.L.W. 4458
Posted: January 3, 2011 Filed under: California, Legal Case, Minors, Youth, Children | Tags: Grandparents, Minor's right to sue, Parental Rights Leave a commentTroxel v. Granville, 530 U.S. 57; 120 S. Ct. 2054; 147 L. Ed. 2d 49; 2000 U.S. LEXIS 3767; 68 U.S.L.W. 4458
Jenifer Troxel, et vir v. Tommie Granville
No. 99-138
Supreme Court of the United States
530 U.S. 57; 120 S. Ct. 2054; 147 L. Ed. 2d 49; 2000 U.S. LEXIS 3767; 68 U.S.L.W. 4458; 2000 Cal. Daily Op. Service 4345; 2000 Daily Journal DAR 5831; 2000 Colo. J. C.A.R. 3199; 13 Fla. L. Weekly Fed. S 365
January 12, 2000, Argued
June 5, 2000, Decided
Prior History: On Writ of Certiorari to the Supreme Court of Washington.
Disposition: 137 Wash. 2d 1, 969 P. 2d 21, affirmed.
Decision:
Application of Washington state child-visitation-rights statute to allow visitation rights to paternal grandparents held to violate mother’s Fourteenth Amendment due process right to bring up her children.
Summary:
A Washington state statute (1) permitted any person to petition a state court for child visitation rights at any time, and (2) authorized the court to order visitation rights for any person when visitation might serve the best interest of the child. Pursuant to the statute, paternal grandparents filed a petition to obtain visitation rights with their deceased son’s children. After the Washington Superior Court for Skagit County granted the grandparents more visitation time than the children’s mother desired, the mother appealed. While the appeal was pending, the mother, who had never married the children’s father, was married to a father of six, who adopted the two children. The Washington Court of Appeals reversed the visitation order and dismissed the petition for visitation (87 Wash App 131, 940 P2d 698). The Washington Supreme Court, affirming the judgment of the Court of Appeals, expressed the view that the statute infringed on the fundamental right, under the Federal Constitution, of parents to rear their children (137 Wash 2d 1, 969 P2d 21).
On certiorari, the United States Supreme Court affirmed. Although unable to agree on an opinion, six members of the court agreed that application of the state statute to allow visitation rights to the paternal grandparents violated the mother’s right, under the due process clause of the Constitution’s Fourteenth Amendment, to bring up her children.
O’Connor, J., announced the judgment of the court and, in an opinion joined by Rehnquist, Ch. J., and Ginsburg and Breyer, JJ., expressed the view that (1) the Fourteenth Amendment’s due process clause protected the fundamental right of parents to make decisions concerning the care, custody, and control of their children; and (2) as applied to the mother and her family in the instant case, the state statute unconstitutionally infringed on that fundamental right, as (a) the grandparents did not allege, and no court had found, that the mother was an unfit parent, (b) there was a traditional presumption that fit parents acted in the best interests of their children, and (c) there was no allegation that the mother ever sought to cut off visitation entirely.
Souter, J., concurring in the judgment, expressed the view that there should be a simple affirmance of the facial invalidation, by the Supreme Court of Washington, of its own state statute.
Thomas, J., concurring in the judgment, expressed the view that (1) the appropriate standard of review for the alleged infringement of fundamental constitutional rights was strict scrutiny, and (2) in the case at hand, the state lacked even a legitimate interest in second-guessing a fit parent’s decision regarding visitation with third parties.
Stevens, J., dissenting, expressed the view that (1) certiorari should have been denied, because there was no pressing need to review a decision of a state’s highest court that merely required the state legislature to draft a better statute; and (2) the due process clause left room for states to consider the impact on a child of possibly arbitrary parental decisions that neither served nor were motivated by the best interests of the child.
Scalia, J., dissenting, expressed the view that the power that the Constitution conferred upon a judge, as a judge, did not entitle the judge to deny legal effect to laws that, in the judge’s view, infringed upon what was, in the judge’s view, parents’ unenumerated constitutional right to rear their children.
Kennedy, J., dissenting, expressed the view that the Washington Supreme Court’s judgment ought to be vacated and the case ought to be remanded for further proceedings, because the Washington Supreme Court had erred in its central conclusion that the best-interests-of-the-child standard was never appropriate in third-party visitation cases.
Lawyers’ Edition Headnotes:
[***LEdHN1]
Constitutional Law §528.5
· due process—parental right to raise children—grandparents’ visitation rights Headnote:[1A][1B][1C][1D][1E]
Application of a state statute—which (1) permits any person to petition a state court for child visitation rights at any time, and (2) authorizes the court to order visitation rights for any person when visitation may serve the best interest of the child—to allow visitation rights to two children’s paternal grandparents violates the mother’s due process right, under the Federal Constitution’s Fourteenth Amendment, to bring up her children. [Per O’Connor, J., Rehnquist, Ch. J., and Ginsburg, Breyer, Souter, and Thomas, JJ. Dissenting:
Stevens, Scalia, and Kennedy, JJ.]
[***LEdHN2]
Constitutional Law §528.5
· due process—child visitation
Headnote:[2A][2B]
With respect to the right, under the due process clause of the Federal Constitution’s Fourteenth Amendment, of a custodial parent to bring up his or her children without governmental interference, the constitutionality of the application of a standard for awarding child visitation rights depends on specific factors; the constitutionality protections in this area are best elaborated with care. [Per O’Connor, J., Rehnquist, Ch. J., and Ginsburg, Breyer, and Kennedy, JJ. Dissenting in part: Scalia, J.] SYLLABUS: Washington Rev. Code § 26.10.160(3) permits “any person” to petition for visitation rights “at any time” and authorizes state superior courts to grant such rights whenever visitation may serve a child’s best interest. Petitioners Troxel petitioned for the right to visit their deceased son’s daughters. Respondent Granville, the girls’ mother, did not oppose all visitation, but objected to the amount sought by the Troxels. The Superior Court ordered more visitation than Granville desired, and she appealed. The State Court of Appeals reversed and dismissed the Troxels’ petition. In affirming, the State Supreme Court held, inter alia, that § 26.10.160(3) unconstitutionally infringes on parents’ fundamental right to rear their children. Reasoning that the Federal Constitution permits a State to interfere with this right only to prevent harm or potential harm to the child, it found that § 26.10.160(3) does not require a threshold showing of harm and sweeps too broadly by permitting any person to petition at any time with the only requirement being that the visitation serve the best interest of the child.
Held: The judgment is affirmed.
137 Wn.2d 1, 969 P.2d 21, affirmed.
Justice O’Connor, joined by The Chief Justice, Justice Ginsburg, and Justice Breyer, concluded that § 26.10.160(3), as applied to Granville and her family, violates her due process right to make decisions concerning the care, custody, and control of her daughters. Pp. 5-17.
(a) The Fourteenth Amendment’s Due Process Clause has a substantive component that “provides heightened protection against government interference with certain fundamental rights and liberty interests,” Washington v. Glucksberg, 521 U.S. 702, 720, 138 L. Ed. 2d 772, 117 S. Ct. 2258, including parents’ fundamental right to make decisions concerning the care, custody, and control of their children, see, e.g., Stanley v. Illinois, 405 U.S. 645, 651. Pp. 5-8, 31 L. Ed. 2d 551, 92 S. Ct. 1208.
(b) Washington’s breathtakingly broad statute effectively permits a court to disregard and overturn any decision by a fit custodial parent concerning visitation whenever a third party affected by the decision files a visitation petition, based solely on the judge’s determination of the child’s best interest. A parent’s estimation of the child’s best interest is accorded no deference. The State Supreme Court had the opportunity, but declined, to give § 26.10.160(3) a narrower reading. A combination of several factors compels the conclusion that § 26.10.160(3), as applied here, exceeded the bounds of the Due Process Clause. First, the Troxels did not allege, and no court has found, that Granville was an unfit parent. There is a presumption that fit parents act in their children’s best interests, Parham v. J. R., 442 U.S. 584, 602, 61 L. Ed. 2d 101, 99 S. Ct. 2493; there is normally no reason for the State to inject itself into the private realm of the family to further question fit parents’ ability to make the best decisions regarding their children, see, e.g., Reno v. Flores, 507 U.S. 292, 304, 123 L. Ed. 2d 1, 113 S. Ct. 1439. The problem here is not that the Superior Court intervened, but that when it did so, it gave no special weight to Granville’s determination of her daughters’ best interests. More importantly, that court appears to have applied the opposite presumption, favoring grandparent visitation. In effect, it placed on Granville the burden of disproving that visitation would be in her daughters’ best interest and thus failed to provide any protection for her fundamental right. The court also gave no weight to Granville’s having assented to visitation even before the filing of the petition or subsequent court intervention. These factors, when considered with the Superior Court’s slender findings, show that this case involves nothing more than a simple disagreement between the court and Granville concerning her children’s best interests, and that the visitation order was an unconstitutional infringement on Granville’s right to make decisions regarding the rearing of her children. Pp. 8-14.
(c) Because the instant decision rests on § 26.10.160(3)’s sweeping breadth and its application here, there is no need to consider the question whether the Due Process Clause requires all nonparental visitation statutes to include a showing of harm or potential harm to the child as a condition precedent to granting visitation or to decide the precise scope of the parental due process right in the visitation context. There is also no reason to remand this case for further proceedings. The visitation order clearly violated the Constitution, and the parties should not be forced into additional litigation that would further burden Granville’s parental right. Pp. 14-17.
JUSTICE SOUTER concluded that the Washington Supreme Court’s second reason for invalidating its own state statute—that it sweeps too broadly in authorizing any person at any time to request (and a judge to award) visitation rights, subject only to the State’s particular best-interests standard—is consistent with this Court’s prior cases. This ends the case, and there is no need to decide whether harm is required or to consider the precise scope of a parent’s right or its necessary protections. Pp. 1-5.
JUSTICE THOMAS agreed that this Court’s recognition of a fundamental right of parents to direct their children’s upbringing resolves this case, but concluded that strict scrutiny is the appropriate standard of review to apply to infringements of fundamental rights. Here, the State lacks a compelling interest in second-guessing a fit parent’s decision regarding visitation with third parties. Pp. 1-2.
COUNSEL: Mark D. Olson argued the cause for petitioners.
Catherine W. Smith argued the cause for respondent. JUDGES: O’CONNOR, J., announced the judgment of the Court and delivered an opinion, in which REHNQUIST, C. J., and GINSBURG and BREYER, JJ., joined. SOUTER, J., and THOMAS, J., filed opinions concurring in the judgment. STEVENS, J., SCALIA, J., and KENNEDY, J., filed dissenting opinions.
Opinion by: O’Connor
Opinion: [*60] [**2057] [***53] [***LEdHR1A] [1A] Justice O’Connor announced the judgment of the Court and delivered an opinion, in which The Chief Justice, justice Ginsburg, and Justice Breyer join.
Section 26.10.160(3) of the Revised Code of Washington permits “any person” to petition a superior court for visitation rights “at any time,” and authorizes that court to grant such visitation rights whenever “visitation may serve the best interest of the child.” Petitioners Jenifer and Gary Troxel petitioned a Washington Superior Court for the right to visit their grandchildren, Isabelle and Natalie Troxel. Respondent Tommie Granville, the mother of Isabelle and Natalie, opposed the petition. The case ultimately reached the Washington Supreme Court, which held that § 26.10.160(3) unconstitutionally interferes with the fundamental right of parents to rear their children.
I
Tommie Granville and Brad Troxel shared a relationship that ended in June 1991. The two never married, but they had two daughters, Isabelle and Natalie. Jenifer and Gary Troxel are Brad’s parents, and thus the paternal grandparents of Isabelle and Natalie. After Tommie and Brad separated in 1991, Brad lived with his parents and regularly brought his daughters to his parents’ home for weekend visitation. Brad committed suicide in May 1993. Although the Troxels at first continued to see Isabelle and Natalie on a regular basis after their son’s death, Tommie Granville informed [*61] the Troxels in October 1993 that she wished to limit their visitation with her daughters to one short visit per month. In re Smith, 137 Wn.2d 1, 6, 969 P.2d 21, 23-24 (1998); In re Troxel, 87 Wn. App. 131, 133, 940 P.2d 698, 698-699 (1997). [***54]
In December 1993, the Troxels commenced the present action by filing, in the Washington Superior Court for Skagit County, a petition to obtain visitation rights with Isabelle and Natalie. The Troxels filed their petition under two Washington statutes, Wash. Rev. Code §§ 26.09.240 and 26.10.160(3) (1994). Only the latter statute is at issue in this case. Section 26.10.160(3) provides: “Any person may petition the court for visitation rights at any time including, but not limited to, custody proceedings. The [**2058] court may order visitation rights for any person when visitation may serve the best interest of the child whether or not there has been any change of circumstances.” At trial, the Troxels requested two weekends of overnight visitation per month and two weeks of visitation each summer. Granville did not oppose visitation altogether, but instead asked the court to order one day of visitation per month with no overnight stay. 87 Wn. App. at 133-134, 940 P.2d at 699. In 1995, the Superior Court issued an oral ruling and entered a visitation decree ordering visitation one weekend per month, one week during the summer, and four hours on both of the petitioning grandparents’ birthdays. 137 Wn.2d at 6, 969 P.2d at 23; App. to Pet. for Cert. 76a-78a.
Granville appealed, during which time she married Kelly Wynn. Before addressing the merits of Granville’s appeal, the Washington Court of Appeals remanded the case to the Superior Court for entry of written findings of fact and conclusions of law. 137 Wn.2d at 6, 969 P.2d at 23. On remand, the Superior Court found that visitation was in Isabelle and Natalie’s best interests:
“The Petitioners [the Troxels] are part of a large, central, loving family, all located in this area, and the Petitioners [*62] can provide opportunities for the children in the areas of cousins and music.
“ . . . The court took into consideration all factors regarding the best interest of the children and considered all the testimony before it. The children would be benefitted from spending quality time with the Petitioners, provided that that time is balanced with time with the childrens’ [sic] nuclear family. The court finds that the childrens’ [sic] best interests are served by spending time with their mother and stepfather’s other six children.” App. 70a.
Approximately nine months after the Superior Court entered its order on remand, Granville’s husband formally adopted Isabelle and Natalie. Id. at 60a-67a.
The Washington Court of Appeals reversed the lower court’s visitation order and dismissed the Troxels’ petition for visitation, holding that nonparents lack standing to seek visitation under § 26.10.160(3) unless a custody action is pending. In the Court of Appeals’ view, that limitation on nonparental visitation actions was “consistent with the constitutional restrictions on state interference with parents’ fundamental liberty interest in the care, custody, and management of their children.” 87 Wn. App. at 135, 940 P.2d at 700 (internal quotation marks omitted). Having resolved the case on the statutory ground, however, the Court of Appeals did not expressly pass on Granville’s constitutional challenge to the visitation statute. Id. at 138, 940 P.2d at 701.
The Washington Supreme Court [***55] granted the Troxels’ petition for review and, after consolidating their case with two other visitation cases, affirmed. The court disagreed with the Court of Appeals’ decision on the statutory issue and found that the plain language of § 26.10.160(3) gave the Troxels standing to seek visitation, irrespective of whether a custody action was pending. 137 Wn.2d at 12, 969 P. [*63] 2d at 26-27. The Washington Supreme Court nevertheless agreed with the Court of Appeals’ ultimate conclusion that the Troxels could not obtain visitation of Isabelle and Natalie pursuant to § 26.10.160(3). The court rested its decision on the Federal Constitution, holding that § 26.10.160(3) unconstitutionally infringes on the fundamental right of parents to rear their children. In the court’s view, there were at least two problems with the nonparental visitation statute. First, according to the Washington Supreme Court, the Constitution permits a State to interfere with the right of parents to rear their children only to prevent harm or potential harm to a child. Section 26.10.160(3) fails that standard because it requires no threshold showing of harm. Id. at 15-20, 969 P.2d at 28-30. Second, [**2059] by allowing “’any person’ to petition for forced visitation of a child at ‘any time’ with the only requirement being that the visitation serve the best interest of the child,” the Washington visitation statute sweeps too broadly. Id. at 20, 969 P.2d at 30. “It is not within the province of the state to make significant decisions concerning the custody of children merely because it could make a ‘better’ decision.” Ibid., 969 P.2d at 31. The Washington Supreme Court held that “parents have a right to limit visitation of their children with third persons,” and that between parents and judges, “the parents should be the ones to choose whether to expose their children to certain people or ideas.” Id. at 21, 969 P.2d at 31. Four justices dissented from the Washington Supreme Court’s holding on the constitutionality of the statute. Id. at 23-43, 969 P.2d at 32-42.
We granted certiorari, 527 U.S. 1069 (1999), and now affirm the judgment.
II
The demographic changes of the past century make it difficult to speak of an average American family. The composition of families varies greatly from household to household. While many children may have two married parents and [*64] grandparents who visit regularly, many other children are raised in single-parent households. In 1996, children living with only one parent accounted for 28 percent of all children under age 18 in the United States. U.S. Dept. of Commerce, Bureau of Census, Current Population Reports, 1997 Population Profile of the United States 27 (1998). Understandably, in these single-parent households, persons outside the nuclear family are called upon with increasing frequency to assist in the everyday tasks of child rearing. In many cases, grandparents play an important role. For example, in 1998, approximately 4 million children—or 5.6 percent of all children under age 18 — lived in the household of their grandparents. U.S. Dept. of Commerce, Bureau of Census, Current Population Reports, Marital Status and Living Arrangements: March 1998 (Update), p. i (1998).
The nationwide enactment of nonparental visitation statutes is assuredly due, in some part, to the States’ recognition of these changing realities [***56] of the American family. Because grandparents and other relatives undertake duties of a parental nature in many households, States have sought to ensure the welfare of the children therein by protecting the relationships those children form with such third parties. The States’ nonparental visitation statutes are further supported by a recognition, which varies from State to State, that children should have the opportunity to benefit from relationships with statutorily specified persons—for example, their grandparents. The extension of statutory rights in this area to persons other than a child’s parents, however, comes with an obvious cost. For example, the State’s recognition of an independent third-party interest in a child can place a substantial burden on the traditional parent-child relationship. Contrary to Justice Stevens’ accusation, our description of state nonparental visitation statutes in these terms, of course, is not meant to suggest that “children are so much chattel.” Post, at 10 (dissenting opinion). Rather, our terminology is intended to highlight the fact that these [*65] statutes can present questions of constitutional import. In this case, we are presented with just such a question. Specifically, we are asked to decide whether § 26.10.160(3), as applied to Tommie Granville and her family, violates the Federal Constitution.
The Fourteenth Amendment provides that no State shall “deprive any person of life, liberty, or property, without due process of law.” We have long recognized that the Amendment’s Due Process Clause, like its Fifth Amendment counterpart, “guarantees more than fair process.” Washington v. Glucksberg, 521 U.S. 702, 719, 138 L. Ed. 2d 772, [**2060] 117 S. Ct. 2258 (1997). The Clause also includes a substantive component that “provides heightened protection against government interference with certain fundamental rights and liberty interests.” 521 U.S. at 720; see also Reno v. Flores, 507 U.S. 292, 301-302, 123 L. Ed. 2d 1, 113 S. Ct. 1439 (1993).
The liberty interest at issue in this case—the interest of parents in the care, custody, and control of their children—is perhaps the oldest of the fundamental liberty interests recognized by this Court. More than 75 years ago, in Meyer v. Nebraska, 262 U.S. 390, 399, 401, 67 L. Ed. 1042, 43 S. Ct. 625 (1923), we held that the “liberty” protected by the Due Process Clause includes the right of parents to “establish a home and bring up children” and “to control the education of their own.” Two years later, in Pierce v. Society of Sisters, 268 U.S. 510, 534-535, 69 L. Ed. 1070, 45 S. Ct. 571 (1925), we again held that the “liberty of parents and guardians” includes the right “to direct the upbringing and education of children under their control.” We explained in Pierce that “the child is not the mere creature of the State; those who nurture him and direct his destiny have the right, coupled with the high duty, to recognize and prepare him for additional obligations.” 268 U.S. at 535. We returned to the subject in Prince v. Massachusetts, 321 U.S. 158, 88 L. Ed. 645, 64 S. Ct. 438 (1944), and again confirmed that there is a constitutional dimension to the right of parents to direct the upbringing of their children. “It is cardinal with us that the custody, care and nurture of the child reside first in the parents, whose primary [*66] function and freedom include preparation for obligations the state can neither supply nor [***57] hinder.” 321 U.S. at 166.
[***LEdHR1B] [1B] In subsequent cases also, we have recognized the fundamental right of parents to make decisions concerning the care, custody, and control of their children. See, e.g., Stanley v. Illinois, 405 U.S. 645, 651, 31 L. Ed. 2d 551, 92 S. Ct. 1208 (1972) (“It is plain that the interest of a parent in the companionship, care, custody, and management of his or her children ‘comes to this Court with a momentum for respect lacking when appeal is made to liberties which derive merely from shifting economic arrangements’” (citation omitted)); Wisconsin v. Yoder, 406 U.S. 205, 232, 32 L. Ed. 2d 15, 92 S. Ct. 1526 (1972) (“The history and culture of Western civilization reflect a strong tradition of parental concern for the nurture and upbringing of their children. This primary role of the parents in the upbringing of their children is now established beyond debate as an enduring American tradition”); Quilloin v. Walcott, 434 U.S. 246, 255, 54 L. Ed. 2d 511, 98 S. Ct. 549 (1978) (“We have recognized on numerous occasions that the relationship between parent and child is constitutionally protected”); Parham v. J. R., 442 U.S. 584, 602, 61 L. Ed. 2d 101, 99 S. Ct. 2493 (1979) (“Our jurisprudence historically has reflected Western civilization concepts of the family as a unit with broad parental authority over minor children. Our cases have consistently followed that course”); Santosky v. Kramer, 455 U.S. 745, 753, 71 L. Ed. 2d 599, 102 S. Ct. 1388 (1982) (discussing “the fundamental liberty interest of natural parents in the care, custody, and management of their child”); Glucksberg, supra, at 720 (“In a long line of cases, we have held that, in addition to the specific freedoms protected by the Bill of Rights, the ‘liberty’ specially protected by the Due Process Clause includes the right . . . to direct the education and upbringing of one’s children” (citing Meyer and Pierce)). In light of this extensive precedent, it cannot now be doubted that the Due Process Clause of the Fourteenth Amendment protects the fundamental right of parents to make decisions concerning the care, custody, and control of their children. [*67]
Section 26.10.160(3), as applied to Granville and her family in this case, unconstitutionally infringes on that fundamental [**2061] parental right. The Washington nonparental visitation statute is breathtakingly broad. According to the statute’s text, “any person may petition the court for visitation rights at any time,” and the court may grant such visitation rights whenever “visitation may serve the best interest of the child.” § 26.10.160(3) (emphases added). That language effectively permits any third party seeking visitation to subject any decision by a parent concerning visitation of the parent’s children to state-court review. Once the visitation petition has been filed in court and the matter is placed before a judge, a parent’s decision that visitation would not be in the child’s best interest is accorded no deference. Section 26.10.160(3) contains no requirement that a court accord the parent’s decision any presumption of validity or any weight whatsoever. Instead, the Washington statute places the best-interest determination solely in the hands of the judge. Should the judge disagree with the parent’s estimation of the child’s best interests, the judge’s view necessarily prevails. Thus, in practical effect, in the State of Washington a court can disregard and overturn any [***58] decision by a fit custodial parent concerning visitation whenever a third party affected by the decision files a visitation petition, based solely on the judge’s determination of the child’s best interests. The Washington Supreme Court had the opportunity to give § 26.10.160(3) a narrower reading, but it declined to do so. See, e.g., 137 Wn.2d at 5, 969 P.2d at 23 (“[The statute] allows any person, at any time, to petition for visitation without regard to relationship to the child, without regard to changed circumstances, and without regard to harm”); id. at 20, 969 P.2d at 30 (“[The statute] allows ‘any person’ to petition for forced visitation of a child at ‘any time’ with the only requirement being that the visitation serve the best interest of the child”). [*68]
Turning to the facts of this case, the record reveals that the Superior Court’s order was based on precisely the type of mere disagreement we have just described and nothing more. The Superior Court’s order was not founded on any special factors that might justify the State’s interference with Granville’s fundamental right to make decisions concerning the rearing of her two daughters. To be sure, this case involves a visitation petition filed by grandparents soon after the death of their son—the father of Isabelle and Natalie—but the combination of several factors here compels our conclusion that § 26.10.160(3), as applied, exceeded the bounds of the Due Process Clause.
First, the Troxels did not allege, and no court has found, that Granville was an unfit parent. That aspect of the case is important, for there is a presumption that fit parents act in the best interests of their children. As this Court explained in Parham:
“Our constitutional system long ago rejected any notion that a child is the mere creature of the State and, on the contrary, asserted that parents generally have the right, coupled with the high duty, to recognize and prepare [their children] for additional obligations. . . . The law’s concept of the family rests on a presumption that parents possess what a child lacks in maturity, experience, and capacity for judgment required for making life’s difficult decisions. More important, historically it has recognized that natural bonds of affection lead parents to act in the best interests of their children.” 442 U.S. at 602 (alteration in original) (internal quotation marks and citations omitted).
Accordingly, so long as a parent adequately cares for his or her children ( i.e., is fit), there will normally be no reason for the State to inject itself into the private realm of the family to further question the ability of that parent to make the [*69] best decisions concerning the rearing of that parent’s children. See, e.g., Flores, 507 U.S. at 304. [**2062]
The problem here is not that the Washington Superior Court intervened, but that when it did so, it gave no special weight at all to Granville’s determination of her daughters’ best interests. More importantly, it appears that the Superior Court applied exactly the opposite presumption. In reciting its oral ruling after the conclusion of closing arguments, the Superior Court judge explained:
“The burden is to show that it is in the best interest of the children to have some visitation and some quality time with their grandparents. [***59] I think in most situations a commonsensical approach [is that] it is normally in the best interest of the children to spend quality time with the grandparent, unless the grandparent, [sic] there are some issues or problems involved wherein the grandparents, their lifestyles are going to impact adversely upon the children. That certainly isn’t the case here from what I can tell.” Verbatim Report of Proceedings in In re Troxel, No. 93-3-00650-7 (Wash. Super. Ct., Dec. 14, 19, 1994), p. 213 (hereinafter Verbatim Report).
The judge’s comments suggest that he presumed the grandparents’ request should be granted unless the children would be “impacted adversely.” In effect, the judge placed on Granville, the fit custodial parent, the burden of disproving that visitation would be in the best interest of her daughters. The judge reiterated moments later: “I think [visitation with the Troxels] would be in the best interest of the children and I haven’t been shown it is not in [the] best interest of the children.” Id. at 214.
The decisional framework employed by the Superior Court directly contravened the traditional presumption that a fit parent will act in the best interest of his or her child. See Parham, supra, at 602. In that respect, the court’s presumption [*70] failed to provide any protection for Granville’s fundamental constitutional right to make decisions concerning the rearing of her own daughters. Cf., e.g., Cal. Fam. Code Ann. § 3104(e) (West 1994) (rebuttable presumption that grandparent visitation is not in child’s best interest if parents agree that visitation rights should not be granted); Me. Rev. Stat. Ann., Tit. 19A, § 1803(3) (1998) (court may award grandparent visitation if in best interest of child and “would not significantly interfere with any parent-child relationship or with the parent’s rightful authority over the child”); Minn. Stat. § 257.022(2)(a)(2) (1998) (court may award grandparent visitation if in best interest of child and “such visitation would not interfere with the parent-child relationship”); Neb. Rev. Stat. § 43-1802(2) (1998) (court must find “by clear and convincing evidence” that grandparent visitation “will not adversely interfere with the parent-child relationship”); R. I. Gen. Laws § 15-5-24.3(a)(2)(v) (Supp. 1999) (grandparent must rebut, by clear and convincing evidence, presumption that parent’s decision to refuse grandparent visitation was reasonable); Utah Code Ann. § 30-5-2(2)(e) (1998) (same); Hoff v. Berg, 1999 ND 115, 595 N.W.2d 285, 291-292 (N. D. 1999) (holding North Dakota grandparent visitation statute unconstitutional because State has no “compelling interest in presuming visitation rights of grandparents to an unmarried minor are in the child’s best interests and forcing parents to accede to court-ordered grandparental visitation unless the parents are first able to prove such visitation is not in the best interests of their minor child”). In an ideal world, parents might always seek to cultivate the bonds between grandparents and their grandchildren. Needless to say, however, our world is far from perfect, and in it the decision whether such an intergenerational relationship would be beneficial in any specific case is for the parent to make in the first instance. And, if a fit parent’s decision of the kind at issue here becomes subject to judicial review, the court must accord at least some special weight to the parent’s own determination. [*71] [***60]
Finally, we note that there is no allegation that Granville ever sought to cut off [**2063] visitation entirely. Rather, the present dispute originated when Granville informed the Troxels that she would prefer to restrict their visitation with Isabelle and Natalie to one short visit per month and special holidays. See 87 Wn. App. at 133, 940 P.2d at 699; Verbatim Report 12. In the Superior Court proceedings Granville did not oppose visitation but instead asked that the duration of any visitation order be shorter than that requested by the Troxels. While the Troxels requested two weekends per month and two full weeks in the summer, Granville asked the Superior Court to order only one day of visitation per month (with no overnight stay) and participation in the Granville family’s holiday celebrations. See 87 Wn. App. at 133, 940 P.2d at 699; Verbatim Report 9 (“Right off the bat we’d like to say that our position is that grandparent visitation is in the best interest of the children. It is a matter of how much and how it is going to be structured”) (opening statement by Granville’s attorney). The Superior Court gave no weight to Granville’s having assented to visitation even before the filing of any visitation petition or subsequent court intervention. The court instead rejected Granville’s proposal and settled on a middle ground, ordering one weekend of visitation per month, one week in the summer, and time on both of the petitioning grandparents’ birthdays. See 87 Wn. App. at 133-134, 940 P.2d at 699; Verbatim Report 216-221. Significantly, many other States expressly provide by statute that courts may not award visitation unless a parent has denied (or unreasonably denied) visitation to the concerned third party. See, e.g., Miss. Code Ann. § 93-16-3(2)(a) (1994) (court must find that “the parent or custodian of the child unreasonably denied the grandparent visitation rights with the child”); Ore. Rev. Stat. § 109.121(1)(a)(B) (1997) (court may award visitation if the “custodian of the child has denied the grandparent reasonable opportunity to visit the child”); R. I. Gen. Laws § 15-5-24.3(a)(2)(iii)-(iv) [*72] (Supp. 1999) (court must find that parents prevented grandparent from visiting grandchild and that “there is no other way the petitioner is able to visit his or her grandchild without court intervention”).
Considered together with the Superior Court’s reasons for awarding visitation to the Troxels, the combination of these factors demonstrates that the visitation order in this case was an unconstitutional infringement on Granville’s fundamental right to make decisions concerning the care, custody, and control of her two daughters. The Washington Superior Court failed to accord the determination of Granville, a fit custodial parent, any material weight. In fact, the Superior Court made only two formal findings in support of its visitation order. First, the Troxels “are part of a large, central, loving family, all located in this area, and the [Troxels] can provide opportunities for the children in the areas of cousins and music.” App. 70a. Second, “the children would be benefitted from spending quality time with the [Troxels], provided that that time is balanced with time with the childrens’ [sic] nuclear family.” Ibid. These slender findings, in combination with the court’s announced presumption in favor of grandparent visitation and its failure to accord significant weight to Granville’s already having offered meaningful visitation to the Troxels, show that this case involves nothing [***61] more than a simple disagreement between the Washington Superior Court and Granville concerning her children’s best interests. The Superior Court’s announced reason for ordering one week of visitation in the summer demonstrates our conclusion well: “I look back on some personal experiences . . . . We always spent as kids a week with one set of grandparents and another set of grandparents, [and] it happened to work out in our family that [it] turned out to be an enjoyable experience. Maybe that can, in this family, if that is how it works out.” Verbatim Report 220-221. As we have explained, [**2064] the Due Process Clause does not permit a State to infringe on the fundamental right [*73] of parents to make childrearing decisions simply because a state judge believes a “better” decision could be made. Neither the Washington nonparental visitation statute generally—which places no limits on either the persons who may petition for visitation or the circumstances in which such a petition may be granted—nor the Superior Court in this specific case required anything more. Accordingly, we hold that § 26.10.160(3), as applied in this case, is unconstitutional. [***LEdHR2A] [2A] Because we rest our decision on the sweeping breadth of § 26.10.160(3) and the application of that broad, unlimited power in this case, we do not consider the primary constitutional question passed on by the Washington Supreme Court—whether the Due Process Clause requires all nonparental visitation statutes to include a showing of harm or potential harm to the child as a condition precedent to granting visitation. We do not, and need not, define today the precise scope of the parental due process right in the visitation context. In this respect, we agree with Justice Kennedy that the constitutionality of any standard for awarding visitation turns on the specific manner in which that standard is applied and that the constitutional protections in this area are best “elaborated with care.” Post, at 9 (dissenting opinion). Because much state-court adjudication in this context occurs on a case-by-case basis, we would be hesitant to hold that specific nonparental visitation statutes violate the Due Process Clause as a per se matter. n1 See, e.g., Fairbanks [*74] v. McCarter, 330 Md. 39, 49-50, 622 A.2d 121, 126-127 (1993) (interpreting best-interest standard in grandparent visitation statute normally to [***62] require court’s consideration of certain factors); Williams v. Williams, 256 Va. 19, 501 S.E.2d 417, 418 (1998) (interpreting Virginia nonparental visitation statute to require finding of harm as condition precedent to awarding visitation).
– – – – – – – – – – – – – – Footnotes – – – – – – – – – – – – – – –
n1 All 50 States have statutes that provide for grandparent visitation in some form. See Ala. Code § 30-3-4.1 (1989); Alaska Stat. Ann. § 25.20.065 (1998); Ariz. Rev. Stat. Ann. § 25-409 (1994); Ark. Code Ann. § 9-13-103 (1998);
Cal. Fam. Code Ann. § 3104 (West 1994); Colo. Rev. Stat. § 19-1-117 (1999);
Conn. Gen. Stat. § 46b-59 (1995); Del. Code Ann., Tit. 10, § 1031(7) (1999);
Fla. Stat. § 752.01 (1997); Ga. Code Ann. § 19-7-3 (1991); Haw. Rev. Stat. § 571-46.3 (1999); Idaho Code § 32-719 (1999); Ill. Comp. Stat., ch. 750, § 5/607 (1998); Ind. Code § 31-17-5-1 (1999); Iowa Code § 598.35 (1999); Kan. Stat. Ann. § 38-129 (1993); Ky. Rev. Stat. Ann. § 405.021 (Baldw. 1990); La. Rev. Stat.
Ann. § 9:344 (West Supp. 2000); La. Civ. Code Ann., Art. 136 (West Supp. 2000);
Me. Rev. Stat. Ann., Tit. 19A, § 1803 (1998); Md. Fam. Law Code Ann. § 9-102 (1999); Mass. Gen. Laws § 119:39D (1996); Mich. Comp. Laws Ann. § 722.27b (Supp. 1999); Minn. Stat. § 257.022 (1998); Miss. Code Ann. § 93-16-3 (1994); Mo. Rev.
Stat. § 452.402 (Supp. 1999); Mont. Code Ann. § 40-9-102 (1997); Neb. Rev. Stat.
§ 43-1802 (1998); Nev. Rev. Stat. § 125C.050 (Supp. 1999); N. H. Rev. Stat. Ann.
§ 458:17-d (1992); N. J. Stat. Ann. § 9:2-7.1 (West Supp. 1999-2000); N. M.
Stat. Ann. § 40-9-2 (1999); N. Y. Dom. Rel. Law § 72 (McKinney 1999); N. C. Gen. Stat. §§ 50-13.2, 50-13.2A (1999); N. D. Cent. Code § 14-09-05.1 (1997); Ohio Rev. Code Ann. §§ 3109.051, 3109.11 (Supp. 1999); Okla. Stat., Tit. 10, § 5 (Supp. 1999); Ore. Rev. Stat. § 109.121 (1997); 23 Pa. Cons. Stat. §§ 5311-5313 (1991); R. I. Gen. Laws §§ 15-5-24 to 15-5-24.3 (Supp. 1999); S. C. Code Ann. § 20-7-420(33) (Supp. 1999); S. D. Codified Laws § 25-4-52 (1999); Tenn. Code Ann. §§ 36-6-306, 36-6-307 (Supp. 1999); Tex. Fam. Code Ann. § 153.433 (Supp. 2000);
Utah Code Ann. § 30-5-2 (1998); Vt. Stat. Ann., Tit. 15, §§ 1011-1013 (1989);
Va. Code Ann. § 20-124.2 (1995); W. Va. Code §§ 48-2B-1 to 48-2B-7 (1999); Wis.
Stat. §§ 767.245, 880.155 (1993-1994); Wyo. Stat. Ann. § 20-7-101 (1999).
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Justice Stevens criticizes our reliance on what he characterizes as merely “a guess” about the Washington courts’ interpretation of § 26.10.160(3). Post, at 2. Justice Kennedy likewise states that “more specific guidance should await a case in which a State’s highest court has considered all of the facts in the course of elaborating the protection afforded to parents by the laws of the State and by the Constitution itself.” Post, at 10. [**2065] We respectfully disagree. There is no need to hypothesize about how the Washington courts might apply § 26.10.160(3) because the Washington Superior Court did apply the statute in this very case. Like the Washington Supreme Court, then, we are presented with an actual visitation order and the reasons why the Superior Court believed [*75] entry of the order was appropriate in this case. Faced with the Superior Court’s application of § 26.10.160(3) to Granville and her family, the Washington Supreme Court chose not to give the statute a narrower construction. Rather, that court gave § 26.10.160(3) a literal and expansive interpretation. As we have explained, that broad construction plainly encompassed the Superior Court’s application of the statute. See supra, at 8-9.
[***LEdHR1C] [1C] There is thus no reason to remand the case for further proceedings in the Washington Supreme Court. As Justice Kennedy recognizes, the burden of litigating a domestic relations proceeding can itself be “so disruptive of the parent-child relationship that the constitutional right of a custodial parent to make certain basic determinations for the child’s welfare becomes implicated.” Post at 9. In this case, the litigation costs incurred by Granville on her trip through the Washington court system and to this Court are without a doubt already substantial. As we have explained, it is apparent that the entry of the visitation order in this case violated the Constitution. We should say so now, without forcing the parties into additional litigation that would further burden Granville’s parental right. We therefore hold that the application of § 26.10.160(3) to Granville and her family violated her due process right to make decisions concerning the care, custody, and control of her daughters.
Accordingly, the judgment of the Washington Supreme Court is affirmed.
It is so ordered.
Concur By: Souter; Thomas
Concur:
Justice Souter, concurring in the judgment. [***LEdHR1D] [1D] I concur in the judgment affirming the decision of the Supreme Court of Washington, whose facial invalidation of its own state statute is consistent with this Court’s prior cases addressing the substantive interests at stake. I would say no [***63] more. The issues that might well be presented by reviewing a decision addressing the specific application of the [*76] state statute by the trial court, ante, at 9-14, are not before us and do not call for turning any fresh furrows in the “treacherous field” of substantive due process. Moore v. East Cleveland, 431 U.S. 494, 502, 52 L. Ed. 2d 531, 97 S. Ct. 1932 (1977) (opinion of Powell, J.).
The Supreme Court of Washington invalidated its state statute based on the
text of the statute alone, not its application to any particular case. n1 Its
ruling rested on two independently sufficient grounds: the [**2066] failure of
the statute to require harm to the child to justify a disputed visitation order,
In re Smith, 137 Wn.2d 1, 17, 969 P.2d 21, 29 (1998), and the statute’s
authorization of “any person” at “any time” to petition and to receive visitation rights subject only to a free-ranging best-interests-of-the-child standard, 137 Wn.2d at 20-21, 969 P.2d at 30-31. Ante, at 4. I see no error in the second reason, that because the state statute authorizes any person at any time to request (and a judge to award) visitation rights, subject only to the State’s particular best-interests [*77] standard, the state statute sweeps too broadly and is unconstitutional on its face. Consequently, there is no need to decide whether harm is required or to consider the precise scope of the parent’s right or its necessary protections.
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n1 The Supreme Court of Washington made its ruling in an action where three separate cases, including the Troxels’, had been consolidated. In re Smith, 137 Wn.2d 1, 6-7, 969 P.2d 21, 23-24 (1998). The court also addressed two statutes, Wash. Rev. Code § 26.10.160(3) (Supp. 1996) and former Wash. Rev. Code § 26.09.240 (1994), 137 Wn.2d at 7, 969 P.2d at 24, the latter of which is not even at issue in this case. See Brief for Petitioners 6, n. 9; see also ante, at 2. Its constitutional analysis discussed only the statutory language and neither mentioned the facts of any of the three cases nor reviewed the records of their trial court proceedings below. 137 Wn.2d at 13-21, 969 P.2d at 27-31. The decision invalidated both statutes without addressing their application to particular facts: “We conclude petitioners have standing but, as written, the statutes violate the parents’ constitutionally protected interests. These statutes allow any person, at any time, to petition for visitation without regard to relationship to the child, without regard to changed circumstances, and without regard to harm.” Id. at 5, 969 P.2d at 23 (emphasis added); see also id. at 21, 969 P.2d at 31 (“RCW 26.10.160(3) and former RCW 26.09.240 impermissibly interfere with a parent’s fundamental interest in the care, custody and companionship of the child” (citations and internal quotation marks omitted)).
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We have long recognized that a parent’s interests in the nurture, upbringing, companionship, care, and custody of children are generally protected by the Due Process Clause of the Fourteenth Amendment. See, e.g., Meyer v. Nebraska, 262 U.S. 390, 399, 401, 67 L. Ed. 1042, 43 S. Ct. 625 (1923); Pierce v. Society of Sisters, 268 U.S. 510, 535, 69 L. Ed. 1070, 45 S. Ct. 571 (1925); Stanley v. Illinois, 405 U.S. 645, 651, 31 L. Ed. 2d 551, 92 S. Ct. 1208 (1972); Wisconsin v. Yoder, 406 U.S. 205, 232, 32 L. Ed. 2d 15, 92 S. Ct. 1526 (1972); Quilloin v. Walcott, 434 U.S. 246, 255, 54 L. Ed. 2d 511, 98 S. Ct. 549 (1978); Parham v. J.
R., 442 U.S. 584, 602, 61 L. Ed. 2d 101, 99 S. Ct. 2493 (1979); Santosky v. Kramer, 455 U.S. 745, 753, 71 L. Ed. 2d 599, 102 S. Ct. 1388 (1982); Washington v. Glucksberg, 521 U.S. 702, 720, 138 L. Ed. 2d 772, 117 S. Ct. 2258 (1997). As we first acknowledged in Meyer, the right of parents to “bring up children,” 262 U.S. at 399, and “to control the education of their own” is protected by the Constitution, 262 U.S. at 401. See also Glucksberg, supra, at 761 [***64] (SOUTER, J., concurring in judgment).
On the basis of this settled principle, the Supreme Court of Washington invalidated its statute because it authorized a contested visitation order at the intrusive behest of any person at any time subject only to a best-interests-of-the-child standard. In construing the statute, the state court explained that the “any person” at “any time” language was to be read literally, at 137 Wn.2d at 10-11, 969 P.2d at 25-27, and that “most notably the statute does not require the petitioner to establish that he or she has a substantial relationship with the child,” 137 Wn.2d at 20-21, 969 P.2d at 31. Although the statute speaks of granting visitation rights whenever “visitation may serve the best interest of the child,” Wash. Rev. Code § 26.10.160(3) (1994), the state court authoritatively read this provision as placing hardly any limit on a court’s discretion to award visitation rights. As the court understood it, the specific best-interests provision in the [*78] statute would allow a court to award visitation whenever it thought it could make a better decision than a child’s parent had done. See 137 Wn.2d at 20, 969 P.2d at 31 (“It is not within the province of the state to make significant decisions concerning the custody of children merely because it could make a ‘better’ decision”). n2 On that basis in part, the Supreme Court of Washington invalidated the State’s own statute:
“Parents have a right to limit visitation of their children with third persons.”
Id. at 21, 969 P.2d at 31.
– – – – – – – – – – – – – – Footnotes – – – – – – – – – – – – – – –
n2 As JUSTICE O’CONNOR points out, the best-interests provision “contains no requirement that a court accord the parent’s decision any presumption of validity or any weight whatsoever. Instead, the Washington statute places the best-interest determination solely in the hands of the judge.” Ante, at 8.
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Our cases, it is true, have not set out exact metes and bounds to the protected interest of a parent in the relationship with his child, but Meyer’s repeatedly recognized right of upbringing would be a sham if it failed to encompass the right to be free of judicially compelled visitation by “any party” at “any time” a judge believed [**2067] he “could make a ‘better’ decision” n3 than the objecting parent had done. The strength of a parent’s interest in controlling a child’s associates is as obvious as the influence of personal associations on the development of the child’s social and moral character. Whether for good or for ill, adults not only influence but may indoctrinate children, and a choice about a child’s social companions is not essentially different from the designation of the adults who will influence the child in school. Even a State’s considered judgment about the preferable political and religious character of schoolteachers is not entitled [*79] to prevail over a parent’s choice of private school. Pierce, supra, at 535 (“The fundamental theory of liberty upon which all governments in this Union repose excludes any general power of the State to standardize its children by forcing them to accept instruction from public teachers only. The child is not the mere creature [***65] of the State; those who nurture him and direct his destiny have the right, coupled with the high duty, to recognize and prepare him for additional obligations”). It would be anomalous, then, to subject a parent to any individual judge’s choice of a child’s associates from out of the general population merely because the judge might think himself more enlightened than the child’s parent. n4 To say the least (and as the Court implied in Pierce), parental choice in such matters is not merely a default rule in the absence of either governmental choice or the government’s designation of an official with the power to choose for whatever reason and in whatever circumstances.
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n3 Cf. Chicago v. Morales, 527 U.S. 41, 71, 144 L. Ed. 2d 67, 119 S. Ct.
1849 (1999) (BREYER, J., concurring in part and concurring in judgment) (“The ordinance is unconstitutional, not because a policeman applied this discretion wisely or poorly in a particular case, but rather because the policeman enjoys too much discretion in every case. And if every application of the ordinance represents an exercise of unlimited discretion, then the ordinance is invalid in all its applications”).
n4 The Supreme Court of Washington invalidated the broadly sweeping statute at issue on similarly limited reasoning: “Some parents and judges will not care if their child is physically disciplined by a third person; some parents and judges will not care if a third person teaches the child a religion inconsistent with the parents’ religion; and some judges and parents will not care if the child is exposed to or taught racist or sexist beliefs. But many parents and judges will care, and, between the two, the parents should be the ones to choose whether to expose their children to certain people or ideas.” 137 Wn.2d at 21, 969 P.2d at 31 (citation omitted).
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Since I do not question the power of a State’s highest court to construe its domestic statute and to apply a demanding standard when ruling on its facial constitutionality, n5 see Chicago v. Morales, 527 U.S. 41, 55, n. 22, 144 L. Ed. 2d 67, 119 S. Ct. 1849 (1999) (opinion of STEVENS, J.), this for me is the end of the case. I would simply affirm the decision of the Supreme Court of Washington that its statute, authorizing courts to grant visitation rights to any person at any time, is unconstitutional. I therefore respectfully concur in the judgment.
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n5 This is the pivot between JUSTICE KENNEDY’s approach and mine.
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JUSTICE THOMAS, concurring in the judgment.
I write separately to note that neither party has argued that our substantive
due process cases were wrongly decided and that the original understanding of
the Due Process Clause precludes judicial enforcement of unenumerated rights
under that constitutional provision. As a result, I express no view on the
merits of this matter, and I understand the plurality as well to leave the
resolution of that issue for another day. * n1
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n1 * This case also does not involve a challenge based upon the Privileges and Immunities Clause and thus does not present an opportunity to reevaluate the meaning of that Clause. See Saenz v. Roe, 526 U.S. 489, 527-528, 143 L. Ed. 2d 689, 119 S. Ct. 1518 (1999) (THOMAS, J., dissenting).
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[**2068]
[***LEdHR1E] [1E] Consequently, I agree with the plurality that this Court’s
recognition of a fundamental right of parents to direct the upbringing of their
children resolves this case. Our decision in Pierce v. Society of Sisters, 268
U.S. 510, 69 L. Ed. 1070, 45 S. Ct. 571 (1925), holds that parents have a
fundamental constitutional right to rear their children, including the right to
determine who shall educate and socialize them. The opinions of the plurality,
JUSTICE KENNEDY, and JUSTICE SOUTER recognize such a right, but curiously none
of them articulates the appropriate standard of review. I would apply strict scrutiny to infringements of fundamental rights. Here, the State of Washington lacks even a legitimate governmental interest—to say nothing of a compelling one—in second-guessing a fit parent’s decision regarding visitation with third parties. On this basis, I would affirm the judgment below.
DISSENT BY: STEVENS; SCALIA; KENNEDY
DISSENT: [***66] JUSTICE STEVENS, dissenting.
The Court today wisely declines to endorse either the holding or the reasoning of the Supreme Court of Washington. In my opinion, the Court would have been even wiser to deny certiorari. Given the problematic character of the trial court’s decision and the uniqueness of the Washington statute, there was no pressing need to review a State Supreme [*81] Court decision that merely requires the state legislature to draft a better statute.
Having decided to address the merits, however, the Court should begin by recognizing that the State Supreme Court rendered a federal constitutional judgment holding a state law invalid on its face. In light of that judgment, I believe that we should confront the federal questions presented directly. For the Washington statute is not made facially invalid either because it may be invoked by too many hypothetical plaintiffs, or because it leaves open the possibility that someone may be permitted to sustain a relationship with a child without having to prove that serious harm to the child would otherwise result.
I
In response to Tommie Granville’s federal constitutional challenge, the State Supreme Court broadly held that Wash. Rev. Code § 26.10.160(3) (Supp. 1996) was invalid on its face under the Federal Constitution. n1 Despite the nature of this judgment, JUSTICE O’CONNOR would hold that the Washington visitation statute violated the Due Process Clause of the Fourteenth Amendment only as applied. Ante, at 6, 8, 14-15. I agree with JUSTICE SOUTER, ANTE, at 1, and n. 1 (opinion concurring in judgment), that this approach is untenable.
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n1 The State Supreme Court held that, “as written, the statutes violate the parents’ constitutionally protected interests.” In re Smith, 137 Wn.2d 1, 5, 969 P.2d 21, 23 (1998).
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The task of reviewing a trial court’s application of a state statute to the
particular facts of a case is one that should be performed in the first instance
by the state appellate courts. In this case, because of their views of the
Federal Constitution, the Washington state appeals courts have yet to decide
whether the trial court’s findings were adequate under the [*82] statute. n2
Any as-applied critique of the trial court’s judgment that this Court might
offer could only be based upon a guess about the state courts’ application of
that State’s statute, [**2069] and an independent assessment of the facts in
this case—both judgments that we are ill-suited and ill-advised to make. n3
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n2 As the dissenting judge on the state appeals court noted, “the trial court here was not presented with any guidance as to the proper test to be applied in a case such as this.” In re Troxel, 87 Wn. App. 131, 143, 940 P.2d 698, 703 (1997) (opinion of Ellington, J.). While disagreeing with the appeals court majority’s conclusion that the state statute was constitutionally infirm, Judge Ellington recognized that despite this disagreement, the appropriate result would not be simply to affirm. Rather, because there had been no definitive guidance as to the proper construction of the statute, “the findings necessary to order visitation over the objections of a parent are thus not in the record, and I would remand for further proceedings.” Ibid.
n3 Unlike JUSTICE O’CONNOR, ante, at 10-11, I find no suggestion in the trial court’s decision in this case that the court was applying any presumptions at all in its analysis, much less one in favor of the grandparents. The first excerpt JUSTICE O’CONNOR quotes from the trial court’s ruling, ante, at 10, says nothing one way or another about who bears the burden under the statute of demonstrating “best interests.” There is certainly no indication of a presumption against the parents’ judgment, only a “’commonsensical’” estimation that, usually but not always, visiting with grandparents can be good for children. Ibid. The second quotation, ante, at 11, “’I think [visitation] would be in the best interest of the children and I haven’t been shown that it is not in [the] best interest of the children,’” sounds as though the judge has simply concluded, based on the evidence before him, that visitation in this case would be in the best interests of both girls. Verbatim Report of Proceedings in In re Troxel, No. 93-3-00650-7 (Wash. Super. Ct., Dec. 14, 1994), p. 214. These statements do not provide us with a definitive assessment of the law the court applied regarding a “presumption” either way. Indeed, a different impression is conveyed by the judge’s very next comment: “That has to be balanced, of course, with Mr. and Mrs. Wynn [a.k.a. Tommie Granville], who are trying to put together a family that includes eight children, . . . trying to get all those children together at the same time and put together some sort of functional unit wherein the children can be raised as brothers and sisters and spend lots of quality time together.” Ibid. The judge then went on to reject the Troxels’ efforts to attain the same level of visitation that their son, the girls’ biological father, would have had, had he been alive. “The fact that Mr. Troxel is deceased and he was the natural parent and as much as the grandparents would maybe like to step into the shoes of Brad, under our law that is not what we can do. The grandparents cannot step into the shoes of a deceased parent, per say [sic], as far as whole gamut of visitation rights are concerned.” Id. at 215. Rather, as the judge put it, “I understand your desire to do that as loving grandparents. Unfortunately that would impact too dramatically on the children and their ability to be integrated into the nuclear unit with the mother.” Id. at 222-223.
However one understands the trial court’s decision—and my point is merely to demonstrate that it is surely open to interpretation—its validity under the state statute as written is a judgment for the state appellate courts to make in the first instance.
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While I thus agree with JUSTICE [***67] SOUTER in this respect, I do not agree with his conclusion that the State Supreme Court made a definitive construction of the visitation statute that necessitates the constitutional conclusion he would draw. n4 As I read the State Supreme Court’s opinion, In re Smith, 137 Wn.2d 1, 19-20, 969 P.2d 21, 30-31 (1998), its interpretation of the Federal Constitution made it unnecessary to adopt a definitive construction of the statutory text, or, critically, to decide whether the statute had been correctly applied in this case. In particular, the state court gave no content to the phrase, “best interest of the child,” Wash. Rev. Code § 26.10.160(3) (Supp. 1996) — content that might well be gleaned from that State’s own statutes or decisional law employing the same phrase in different contexts, [*84] and from the myriad other state statutes and court decisions at least nominally applying the same standard. n5 Thus, [**2070] I believe that JUSTICE SOUTER’s conclusion that the statute unconstitutionally imbues state trial [***68] court judges with “’too much discretion in every case,’” ante, at 4, n. 3 (opinion concurring in judgment) (quoting Chicago v. Morales, 527 U.S. 41, 71, 144 L. Ed. 2d 67, 119 S. Ct. 1849 (1999) (BREYER, J., concurring)), is premature.
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n4 JUSTICE SOUTER would conclude from the state court’s statement that the statute “does not require the petitioner to establish that he or she has a substantial relationship with the child,” In re Smith, 137 Wn.2d 1, 21, 969 P.2d 21, 31 (1998), that the state court has “authoritatively read [the ‘best interests’] provision as placing hardly any limit on a court’s discretion to award visitation rights,” ante, at 3 (SOUTER, J., concurring in judgment). Apart from the question whether one can deem this description of the statute an “authoritative” construction, it seems to me exceedingly unlikely that the state court held the statute unconstitutional because it believed that the “best interests” standard imposes “hardly any limit” on courts’ discretion. See n. 5, infra.
n5 The phrase “best interests of the child” appears in no less than 10 current Washington state statutory provisions governing determinations from guardianship to termination to custody to adoption. See, e.g., Wash. Rev. Code § 26.09.240 (6) (Supp. 1996) (amended version of visitation statute enumerating eight factors courts may consider in evaluating a child’s best interests); § 26.09.002 (in cases of parental separation or divorce “best interests of the child are served by a parenting arrangement that best maintains a child’s emotional growth, health and stability, and physical care”; “best interest of the child is ordinarily served when the existing pattern of interaction between a parent and child is altered only to the extent necessitated by the changed relationship of the parents or as required to protect the child from physical, mental, or emotional harm”); § 26.10.100 (“The court shall determine custody in accordance with the best interests of the child”). Indeed, the Washington state courts have invoked the standard on numerous occasions in applying these statutory provisions—just as if the phrase had quite specific and apparent meaning. See, e.g., In re McDole, 122 Wn.2d 604, 859 P.2d 1239 (1993) (upholding trial court “best interest” assessment in custody dispute); McDaniels v. Carlson , 108 Wn.2d 299, 310, 738 P.2d 254, 261 (1987) (elucidating “best interests” standard in paternity suit context). More broadly, a search of current state custody and visitation laws reveals fully 698 separate references to the “best interest of the child” standard, a number that, at a minimum, should give the Court some pause before it upholds a decision implying that those words, on their face, may be too boundless to pass muster under the Federal Constitution.
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We are thus presented with the unconstrued terms of a state statute and a State Supreme Court opinion that, in my view, significantly misstates the effect of the Federal Constitution upon any construction of that statute. Given that posture, I believe the Court should identify and correct the two flaws in the reasoning of the state court’s majority opinion, [*85] and remand for further review of the trial court’s disposition of this specific case.
II
In my view, the State Supreme Court erred in its federal constitutional analysis because neither the provision granting “any person” the right to petition the court for visitation, 137 Wn.2d at 20, 969 P.2d at 30, nor the absence of a provision requiring a “threshold . . . finding of harm to the child,” ibid., provides a sufficient basis for holding that the statute is invalid in all its applications. I believe that a facial challenge should fail whenever a statute has “a ‘plainly legitimate sweep,’” Washington v. Glucksberg, 521 U.S. 702, 739-740, 138 L. Ed. 2d 772, 117 S. Ct. 2258 and n. 7 (1997) (STEVENS, J., concurring in judgment). n6 Under the Washington statute, there are plainly any number of cases—indeed, one suspects, the most common to arise—in which the “person” among “any” seeking visitation is a once-custodial caregiver, an intimate relation, or even a genetic parent. Even the Court would seem to agree that in many circumstances, it would be constitutionally permissible for a court to award some visitation of a child to a parent or previous caregiver in cases of parental separation or divorce, cases of disputed custody, cases involving temporary foster care or guardianship, and so forth. As the statute plainly sweeps in a great deal of the permissible, the State Supreme Court majority incorrectly concluded that a statute authorizing “any person” to file a petition seeking visitation privileges would invariably run afoul of the Fourteenth Amendment.
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n6 It necessarily follows that under the far more stringent demands suggested by the majority in United States v. Salerno, 481 U.S. 739, 745, 95 L. Ed. 2d 697, 107 S. Ct. 2095 (1987) (plaintiff seeking facial invalidation “must establish that no set of circumstances exists under which the Act would be valid”), respondent’s facial challenge must fail.
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The second key aspect of the Washington Supreme Court’s holding—that the Federal Constitution requires a showing of actual or potential “harm” to the child before a court may [*86] order visitation continued over a parent’s objections—finds no support in this Court’s case law. [***69] While, as [**2071] the Court recognizes, the Federal Constitution certainly protects the parent-child relationship from arbitrary impairment by the State, see infra, at 7-8 we have never held that the parent’s liberty interest in this relationship is so inflexible as to establish a rigid constitutional shield, protecting every arbitrary parental decision from any challenge absent a threshold finding of harm. n7 The presumption that parental decisions generally serve the best interests of their children is sound, and clearly in the normal case the parent’s interest is paramount. But even a fit parent is capable of treating a child like a mere possession.
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n7 The suggestion by JUSTICE THOMAS that this case may be resolved solely with reference to our decision in Pierce v. Society of Sisters, 268 U.S. 510, 535, 69 L. Ed. 1070, 45 S. Ct. 571 (1925), is unpersuasive. Pierce involved a parent’s choice whether to send a child to public or private school. While that case is a source of broad language about the scope of parents’ due process rights with respect to their children, the constitutional principles and interests involved in the schooling context do not necessarily have parallel implications in this family law visitation context, in which multiple overlapping and competing prerogatives of various plausibly interested parties are at stake.
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Cases like this do not present a bipolar struggle between the parents and the State over who has final authority to determine what is in a child’s best interests. There is at a minimum a third individual, whose interests are implicated in every case to which the statute applies—the child.
It has become standard practice in our substantive due process jurisprudence to begin our analysis with an identification of the “fundamental” liberty interests implicated by the challenged state action. See, e.g., ante, at 6-8 (opinion of O’CONNOR, J.); Washington v. Glucksberg, 521 U.S. 702, 138 L. Ed. 2d 772, 117 S. Ct. 2258 (1997); Planned Parenthood of Southeastern Pa. v. Casey, 505 U.S. 833, 120 L. Ed. 2d 674, 112 S. Ct. 2791 (1992). My colleagues are of course correct to recognize that the right of a parent to maintain a relationship with his or her child is among the interests included [*87] most often in the constellation of liberties protected through the Fourteenth Amendment. Ante, at 6-8 (opinion of O’CONNOR, J.). Our cases leave no doubt that parents have a fundamental liberty interest in caring for and guiding their children, and a corresponding privacy interest—absent exceptional circumstances—in doing so without the undue interference of strangers to them and to their child. Moreover, and critical in this case, our cases applying this principle have explained that with this constitutional liberty comes a presumption (albeit a rebuttable one) that “natural bonds of affection lead parents to act in the best interests of their children.” Parham v. J. R., 442 U.S. 584, 602, 61 L. Ed. 2d 101, 99 S. Ct. 2493 (1979); see also Casey, 505 U.S. at 895; Santosky v. Kramer, 455 U.S. 745, 759, 71 L. Ed. 2d 599, 102 S. Ct. 1388 (1982) (State may not presume, at factfinding stage of parental rights termination proceeding, that interests of parent and child diverge); see also ante, at 9-10 (opinion of O’CONNOR, J.).
Despite this Court’s repeated recognition of these significant parental liberty interests, these interests have never been seen to be without limits. In Lehr v. Robertson, 463 U.S. 248, 77 L. Ed. 2d 614, 103 S. Ct. 2985 (1983), [***70] for example, this Court held that a putative biological father who had never established an actual relationship with his child did not have a constitutional right to notice of his child’s adoption by the man who had married the child’s mother. As this Court had recognized in an earlier case, a parent’s liberty interests “’do not spring full-blown from the biological connection between parent and child. They require relationships more enduring.’” 463 U.S. at 260 (quoting Caban v. Mohammed, 441 U.S. 380, 397, 60 L. Ed. 2d 297, 99 S. Ct. 1760 (1979)). [**2072]
Conversely, in Michael H. v. Gerald D., 491 U.S. 110, 105 L. Ed. 2d 91, 109 S. Ct. 2333 (1989), this Court concluded that despite both biological parenthood and an established relationship with a young child, a father’s due process liberty interest in maintaining some connection with that child was not sufficiently powerful to overcome a state statutory presumption that the husband of the child’s mother was the child’s parent. As a result of the [*88] presumption, the biological father could be denied even visitation with the child because, as a matter of state law, he was not a “parent.” A plurality of this Court there recognized that the parental liberty interest was a function, not simply of “isolated factors” such as biology and intimate connection, but of the broader and apparently independent interest in family. See, e.g., 491 U.S. at 123; see also Lehr, 463 U.S. at 261; Smith v. Organization of Foster Families For Equality & Reform, 431 U.S. 816, 842-847, 53 L. Ed. 2d 14, 97 S. Ct. 2094 (1977); Moore v. East Cleveland, 431 U.S. 494, 498-504, 52 L. Ed. 2d 531, 97 S. Ct. 1932 (1977).
A parent’s rights with respect to her child have thus never been regarded as absolute, but rather are limited by the existence of an actual, developed relationship with a child, and are tied to the presence or absence of some embodiment of family. These limitations have arisen, not simply out of the definition of parenthood itself, but because of this Court’s assumption that a parent’s interests in a child must be balanced against the State’s long-recognized interests as parens patriae, see, e.g., Reno v. Flores, 507 U.S. 292, 303-304, 123 L. Ed. 2d 1, 113 S. Ct. 1439 (1993); Santosky v. Kramer, 455 U.S. at 766; Parham, 442 U.S. at 605; Prince v. Massachusetts, 321 U.S. 158, 166, 88 L. Ed. 645, 64 S. Ct. 438 (1944), and, critically, the child’s own complementary interest in preserving relationships that serve her welfare and protection, Santosky, 455 U.S. at 760.
While this Court has not yet had occasion to elucidate the nature of a
child’s liberty interests in preserving established familial or family-like
bonds, 491 U.S. at 130 (reserving the question), it seems to me extremely
likely that, to the extent parents and families have fundamental liberty
interests in preserving such intimate relationships, so, too, do children have
these interests, and so, too, must their interests be balanced in the equation.
n8 At a minimum, our [***71] prior cases recognizing [*89] that children
are, generally speaking, constitutionally protected actors require that this
Court reject any suggestion that when it comes to parental rights, children are
so much chattel. See ante, at 5-6 (opinion of O’CONNOR, J.) (describing States’
recognition of “an independent third-party interest in a child”). The
constitutional protection against arbitrary state interference with parental
rights should not be extended to prevent the States from protecting children
against the arbitrary exercise of parental authority that is not in fact
motivated by an interest in the welfare of the child. n9
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n8 This Court has on numerous occasions acknowledged that children are in many circumstances possessed of constitutionally protected rights and liberties. See Parham v. J. R., 442 U.S. 584, 600, 61 L. Ed. 2d 101, 99 S. Ct. 2493 (1979) (liberty interest in avoiding involuntary confinement); Planned Parenthood of Central Mo. v. Danforth, 428 U.S. 52, 74, 49 L. Ed. 2d 788, 96 S. Ct. 2831 (1976) (“Constitutional rights do not mature and come into being magically only when one attains the state-defined age of majority. Minors, as well as adults, are protected by the Constitution and possess constitutional rights”); Tinker v. Des Moines Independent Community School Dist., 393 U.S. 503, 506-507, 21 L. Ed. 2d 731, 89 S. Ct. 733 (1969) (First Amendment right to political speech); In re Gault, 387 U.S. 1, 13, 18 L. Ed. 2d 527, 87 S. Ct. 1428 (1967) (due process rights in criminal proceedings).
n9 Cf., e.g., Wisconsin v. Yoder, 406 U.S. 205, 241-246, 32 L. Ed. 2d 15, 92 S. Ct. 1526 (1972) (Douglas, J., dissenting) (“While the parents, absent dissent, normally speak for the entire family, the education of the child is a matter on which the child will often have decided views. He may want to be a pianist or an astronaut or an oceanographer. To do so he will have to break from the Amish tradition. It is the future of the student, not the future of the parents, that is imperiled by today’s decision. If a parent keeps his child out of school beyond the grade school, then the child will be forever barred from entry into the new and amazing world of diversity that we have today . . . . It is the student’s judgment, not his parents’, that is essential if we are to give full meaning to what we have said about the Bill of Rights and of the right of students to be masters of their own destiny.”). The majority’s disagreement with Justice Douglas in that case turned not on any contrary view of children’s interest in their own education, but on the impact of the Free Exercise Clause of the First Amendment on its analysis of school-related decisions by the Amish community.
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This is not, of course, to suggest that a child’s liberty interest in maintaining contact with a particular individual is to be treated invariably as on a par with that child’s parents’ contrary interests. Because our substantive due process case law includes a strong presumption that a parent will act [*90] in the best interest of her child, it would be necessary, were the state appellate courts actually to confront a challenge to the statute as applied, to consider whether the trial court’s assessment of the “best interest of the child” incorporated that presumption. Neither would I decide whether the trial court applied Washington’s statute in a constitutional way in this case, although, as I have explained, n. 3, supra, I think the outcome of this determination is far from clear. For the purpose of a facial challenge like this, I think it safe to assume that trial judges usually give great deference to parents’ wishes, and I am not persuaded otherwise here.
But presumptions notwithstanding, we should recognize that there may be circumstances in which a child has a stronger interest at stake than mere protection from serious harm caused by the termination of visitation by a “person” other than a parent. The almost infinite variety of family relationships that pervade our ever-changing society strongly counsel against the creation by this Court of a constitutional rule that treats a biological parent’s liberty interest in the care and supervision of her child as an isolated right that may be exercised arbitrarily. It is indisputably the business of the States, rather than a federal court employing a national standard, to assess in [***72] the first instance the relative importance of the conflicting interests that give rise to disputes such as this. n10 Far from guaranteeing that [*91] parents’ interests will be trammeled in the sweep of cases arising under the statute, the Washington law merely gives an individual — with whom a child may have an established relationship—the procedural right to ask the State to act as arbiter, through the entirely well-known best-interests standard, between the parent’s protected interests and the child’s. [**2074] It seems clear to me that the Due Process Clause of the Fourteenth Amendment leaves room for States to consider the impact on a child of possibly arbitrary parental decisions that neither serve nor are motivated by the best interests of the child.
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n10 See Palmore v. Sidoti, 466 U.S. 429, 431, 80 L. Ed. 2d 421, 104 S. Ct.
1879 (1984) (“The judgment of a state court determining or reviewing a child custody decision is not ordinarily a likely candidate for review by this Court”); cf. Collins v. City of Harker Heights, 503 U.S. 115, 128, 117 L. Ed. 2d 261, 112 S. Ct. 1061 (1992) (matters involving competing and multifaceted social and policy decisions best left to local decisionmaking); Regents of the University of Michigan v. Ewing, 474 U.S. 214, 226, 88 L. Ed. 2d 523, 106 S. Ct. 507 (1985) (emphasizing “our reluctance to trench on the prerogatives of state and local educational institutions” as federal courts are ill-suited to “evaluate the substance of the multitude of academic decisions that are made daily by” experts in the field evaluating cumulative information”). That caution is never more essential than in the realm of family and intimate relations. In part, this principle is based on long-established, if somewhat arbitrary, tradition in allocating responsibility for resolving disputes of various kinds in our federal system. Ankenbrandt v. Richards, 504 U.S. 689, 119 L. Ed. 2d 468, 112 S. Ct. 2206 (1992). But the instinct against over-regularizing decisions about personal relations is sustained on firmer ground than mere tradition. It flows in equal part from the premise that people and their intimate associations are complex and particular, and imposing a rigid template upon them all risks severing bonds our society would do well to preserve.
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Accordingly, I respectfully dissent.
JUSTICE SCALIA, dissenting.
In my view, a right of parents to direct the upbringing of their children is among the “unalienable Rights” with which the Declaration of Independence proclaims “all Men . . . are endowed by their Creator.” And in my view that right is also among the “other [rights] retained by the people” which the Ninth Amendment says the Constitution’s enumeration of rights “shall not be construed to deny or disparage.” The Declaration of Independence, however, is not a legal prescription conferring powers upon the courts; and the Constitution’s refusal to “deny or disparage” other rights is far removed from affirming any one of them, and even farther removed from authorizing judges to identify what they might be, and to enforce the judges’ list against laws duly enacted by the people. Consequently, while I would think it entirely compatible with the commitment to representative [*92] democracy set forth in the founding documents to argue, in legislative chambers or in electoral campaigns, that the state has no power to interfere with parents’ authority over the rearing of their children, I do not believe that the power which the Constitution confers upon me as a judge entitles me to deny legal effect to laws that (in my view) infringe upon what is (in my view) that unenumerated right.
Only three holdings of this Court rest in whole or in part upon a substantive constitutional right of parents to direct the upbringing of their [***73] children n1 — two of them from an era rich in substantive due process holdings that have since been repudiated. See Meyer v. Nebraska, 262 U.S. 390, 399, 401, 67 L. Ed. 1042, 43 S. Ct. 625 (1923); Pierce v. Society of Sisters, 268 U.S. 510, 534-535, 69 L. Ed. 1070, 45 S. Ct. 571 (1925); Wisconsin v. Yoder, 406 U.S. 205, 232-233, 32 L. Ed. 2d 15, 92 S. Ct. 1526 (1972). Cf. West Coast Hotel Co. v. Parrish, 300 U.S. 379, 81 L. Ed. 703, 57 S. Ct. 578 (1937) (overruling Adkins v. Children’s Hospital of D. C., 261 U.S. 525, 67 L. Ed. 785, 43 S. Ct. 394 (1923)). The sheer diversity of today’s opinions persuades me that the theory of unenumerated parental rights underlying these three cases has small claim to stare decisis protection. A legal principle that can be thought to produce such diverse outcomes in the relatively simple case before us here is not a legal principle that has induced substantial reliance. While I would not now overrule those earlier cases (that has not been urged), neither would I extend the theory upon which they rested to this new context.
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n1 Whether parental rights constitute a “liberty” interest for purposes of procedural due process is a somewhat different question not implicated here. Stanley v. Illinois, 405 U.S. 645, 31 L. Ed. 2d 551, 92 S. Ct. 1208 (1972), purports to rest in part upon that proposition, see 405 U.S. at 651-652; but see Michael H. v. Gerald D., 491 U.S. 110, 120-121, 105 L. Ed. 2d 91, 109 S. Ct. 2333 (1989) (plurality opinion), though the holding is independently supported on equal protection grounds, see Stanley, supra, at 658.
– – – – – – – – – – – – End Footnotes- – – – – – – – – – – – – –
Judicial vindication of “parental rights” under a Constitution that does not
even mention them requires (as JUSTICE KENNEDY’s opinion rightly points out) not
only a judicially crafted definition of parents, but also—unless, as no one
believes, [*93] the parental rights are to be absolute—judicially approved
assessments of “harm to the child” and judicially defined gradations of other
persons (grandparents, extended family, adoptive family in an adoption later
found to be invalid, long-term guardians, etc.) who may have some claim against
the wishes of the parents. If we [**2075] embrace this unenumerated right, I
think it obvious—whether we affirm or reverse the judgment here, or remand as
JUSTICE STEVENS or JUSTICE KENNEDY would do—that we will be ushering in a new
regime of judicially prescribed, and federally prescribed, family law. I have no
reason to believe that federal judges will be better at this than state
legislatures; and state legislatures have the great advantages of doing harm in
a more circumscribed area, of being able to correct their mistakes in a flash,
and of being removable by the people. n2
– – – – – – – – – – – – – – Footnotes – – – – – – – – – – – – – – –
n2 I note that respondent is asserting only, on her own behalf, a substantive due process right to direct the upbringing of her own children, and is not asserting, on behalf of her children, their First Amendment rights of association or free exercise. I therefore do not have occasion to consider whether, and under what circumstances, the parent could assert the latter enumerated rights.
– – – – – – – – – – – – End Footnotes- – – – – – – – – – – – – –
For these reasons, I would reverse the judgment below.
JUSTICE KENNEDY, dissenting.
The Supreme Court of Washington has determined that petitioners Jenifer and Gary Troxel have standing under state law to seek court-ordered visitation with their grandchildren, notwithstanding the objections of the children’s parent, respondent Tommie Granville. The statute relied upon provides:
“Any person may petition the court for visitation rights at any time including, but not limited to, custody [***74] proceedings. The court may order visitation rights for any person when visitation may serve the best interest of the child whether or not there has been any change of circumstances.” Wash. Rev. Code § 26.10.160(3) (1994). [*94]
After acknowledging this statutory right to sue for visitation, the State Supreme Court invalidated the statute as violative of the United States Constitution, because it interfered with a parent’s right to raise his or her child free from unwarranted interference. In re Smith, 137 Wn.2d 1, 969 P.2d 21 (1998). Although parts of the court’s decision may be open to differing interpretations, it seems to be agreed that the court invalidated the statute on its face, ruling it a nullity.
The first flaw the State Supreme Court found in the statute is that it allows an award of visitation to a non-parent without a finding that harm to the child would result if visitation were withheld; and the second is that the statute allows any person to seek visitation at any time. In my view the first theory is too broad to be correct, as it appears to contemplate that the best interests of the child standard may not be applied in any visitation case. I acknowledge the distinct possibility that visitation cases may arise where, considering the absence of other protection for the parent under state laws and procedures, the best interests of the child standard would give insufficient protection to the parent’s constitutional right to raise the child without undue intervention by the state; but it is quite a different matter to say, as I understand the Supreme Court of Washington to have said, that a harm to the child standard is required in every instance.
Given the error I see in the State Supreme Court’s central conclusion that the best interests of the child standard is never appropriate in third-party visitation cases, that court should have the first opportunity to reconsider this case. I would remand the case to the state court for further proceedings. If it then found the statute has been applied in an unconstitutional manner because the best interests of the child standard gives insufficient protection to a parent under the circumstances of this case, or if it again declared the statute a nullity because the statute seems to allow any person [*95] at all to seek visitation at any time, the decision would present other issues which may or may not warrant further review in this Court. These include not only the protection the [**2076] Constitution gives parents against state-ordered visitation but also the extent to which federal rules for facial challenges to statutes control in state courts. These matters, however, should await some further case. The judgment now under review should be vacated and remanded on the sole ground that the harm ruling that was so central to the Supreme Court of Washington’s decision was error, given its broad formulation.
Turning to the question whether harm to the child must be the controlling standard in every visitation proceeding, there is a beginning point that commands general, perhaps unanimous, agreement in our separate opinions: As our case law has developed, the custodial parent has a constitutional right to determine, without undue interference by the state, how best to raise, nurture, and educate the child. The parental right stems from the liberty protected by the Due Process Clause of the Fourteenth Amendment. See, e.g., Meyer [***75] v. Nebraska, 262 U.S. 390, 399, 401, 67 L. Ed. 1042, 43 S. Ct. 625 (1923);
Pierce v. Society of Sisters, 268 U.S. 510, 534-535, 69 L. Ed. 1070, 45 S. Ct.
571 (1925); Prince v. Massachusetts, 321 U.S. 158, 166, 88 L. Ed. 645, 64 S. Ct.
438 (1944); Stanley v. Illinois, 405 U.S. 645, 651-652, 31 L. Ed. 2d 551, 92 S. Ct. 1208 (1972); Wisconsin v. Yoder, 406 U.S. 205, 232-233, 32 L. Ed. 2d 15, 92 S. Ct. 1526 (1972); Santosky v. Kramer, 455 U.S. 745, 753-754, 71 L. Ed. 2d 599, 102 S. Ct. 1388 (1982). Pierce and Meyer, had they been decided in recent times, may well have been grounded upon First Amendment principles protecting freedom of speech, belief, and religion. Their formulation and subsequent interpretation have been quite different, of course; and they long have been interpreted to have found in Fourteenth Amendment concepts of liberty an independent right of the parent in the “custody, care and nurture of the child,” free from state intervention. Prince, supra, at 166. The principle exists, then, in broad formulation; yet courts must use considerable restraint, including careful adherence to the incremental instruction [*96] given by the precise facts of particular cases, as they seek to give further and more precise definition to the right.
The State Supreme Court sought to give content to the parent’s right by announcing a categorical rule that third parties who seek visitation must always prove the denial of visitation would harm the child. After reviewing some of the relevant precedents, the Supreme Court of Washington concluded “’the requirement of harm is the sole protection that parents have against pervasive state interference in the parenting process.’” In re Smith, 137 Wn.2d at 19-20, 969 P.2d at 30 (quoting Hawk v. Hawk, 855 S.W.2d 573, 580 (Tenn. 1993)). For that reason, “short of preventing harm to the child,” the court considered the best interests of the child to be “insufficient to serve as a compelling state interest overruling a parent’s fundamental rights.” In re Smith, supra, at 20, 969 P.2d at 30.
While it might be argued as an abstract matter that in some sense the child is always harmed if his or her best interests are not considered, the law of domestic relations, as it has evolved to this point, treats as distinct the two standards, one harm to the child and the other the best interests of the child. The judgment of the Supreme Court of Washington rests on that assumption, and I, too, shall assume that there are real and consequential differences between the two standards.
On the question whether one standard must always take precedence over the other in order to protect the right of the parent or parents, “our Nation’s history, legal traditions, and practices” do not give us clear or definitive answers. Washington v. Glucksberg, 521 U.S. 702, 721, 138 L. Ed. 2d 772, 117 S. Ct. 2258 (1997). The consensus among courts and commentators is that at least through the 19th century there was no legal right of visitation; court-ordered visitation appears to be a 20th-century phenomenon. [**2077] See, e.g., 1 D. Kramer, Legal Rights of Children 124, 136 (2d ed. 1994); 2 J. Atkinson, Modern [*97] Child Custody Practice § 8.10 (1986). A case often cited as one of the earliest visitation decisions, Succession of Reiss, 46 La. Ann. 347, 353, 15 So. 151, 152 (1894), explained that “the obligation ordinarily to visit grandparents is moral and not legal” [***76] — a conclusion which appears consistent with that of American common law jurisdictions of the time. Early 20th-century exceptions did occur, often in cases where a relative had acted in a parental capacity, or where one of a child’s parents had died. See Douglass v. Merriman, 163 S.C. 210, 161 S.E. 452 (1931) (maternal grandparent awarded visitation with child when custody was awarded to father; mother had died); Solomon v. Solomon, 319 Ill. App. 618, 49 N.E.2d 807 (1943) (paternal grandparents could be given visitation with child in custody of his mother when their son was stationed abroad; case remanded for fitness hearing); Consaul v. Consaul, 63 N.Y.S.2d 688 (Sup. Ct. Jefferson Cty. 1946) (paternal grandparents awarded visitation with child in custody of his mother; father had become incompetent). As a general matter, however, contemporary state-court decisions acknowledge that “historically, grandparents had no legal right of visitation,” Campbell v. Campbell, 896 P.2d 635, 642, n. 15 (Utah App. 1995), and it is safe to assume other third parties would have fared no better in court.
To say that third parties have had no historical right to petition for visitation does not necessarily imply, as the Supreme Court of Washington concluded, that a parent has a constitutional right to prevent visitation in all cases not involving harm. True, this Court has acknowledged that States have the authority to intervene to prevent harm to children, see, e.g., Prince, 321 U.S. at 168-169; Yoder, 406 U.S. at 233-234, but that is not the same as saying that a heightened harm to the child standard must be satisfied in every case in which a third party seeks a visitation order. It is also true that the law’s traditional presumption has been “that natural bonds of affection lead parents to act in the [*98] best interests of their children,” Parham v. J. R., 442 U.S. 584, 602, 61 L. Ed. 2d 101, 99 S. Ct. 2493 (1979); and “simply because the decision of a parent is not agreeable to a child or because it involves risks does not automatically transfer the power to make that decision from the parents to some agency or officer of the state,” 442 U.S. at 603. The State Supreme Court’s conclusion that the Constitution forbids the application of the best interests of the child standard in any visitation proceeding, however, appears to rest upon assumptions the Constitution does not require.
My principal concern is that the holding seems to proceed from the assumption that the parent or parents who resist visitation have always been the child’s primary caregivers and that the third parties who seek visitation have no legitimate and established relationship with the child. That idea, in turn, appears influenced by the concept that the conventional nuclear family ought to establish the visitation standard for every domestic relations case. As we all know, this is simply not the structure or prevailing condition in many households. See, e.g., Moore v. East Cleveland, 431 U.S. 494, 52 L. Ed. 2d 531, 97 S. Ct. 1932 (1977). For many boys and girls a traditional family with two or even one permanent and caring parent is simply not the reality of their childhood. This may be so whether their childhood has been marked by tragedy or filled with considerable happiness and fulfillment.
Cases are sure to arise—perhaps a [***77] substantial number of cases— in which a third party, by acting in a caregiving role over a significant period of time, has developed a relationship with a child which is not necessarily subject to absolute parental veto. See Michael H. v. Gerald D., 491 U.S. 110, 105 L. Ed. 2d 91, 109 S. Ct. 2333 (1989) (putative natural father not entitled to rebut state law presumption that child born in a [**2078] marriage is a child of the marriage); Quilloin v. Walcott, 434 U.S. 246, 54 L. Ed. 2d 511, 98 S. Ct. 549 (1978) (best interests standard sufficient in adoption proceeding to protect interests of natural father who had not legitimated the child); see also Lehr v. Robertson, 463 U.S. 248, 261, 77 L. Ed. 2d 614, 103 S. Ct. 2985 (1983) (“’The importance of the familial relationship, to the individuals involved [*99] and to the society, stems from the emotional attachments that derive from the intimacy of daily association, and from the role it plays in ‘promoting a way of life’ through the instruction of children . . . as well as from the fact of blood relationship.’” (quoting Smith v. Organization of Foster Families For Equality & Reform, 431 U.S. 816, 844, 53 L. Ed. 2d 14, 97 S. Ct. 2094 (1977) (in turn quoting Yoder, 406 U.S. at 231-233))). Some pre-existing relationships, then, serve to identify persons who have a strong attachment to the child with the concomitant motivation to act in a responsible way to ensure the child’s welfare. As the State Supreme Court was correct to acknowledge, those relationships can be so enduring that “in certain circumstances where a child has enjoyed a substantial relationship with a third person, arbitrarily depriving the child of the relationship could cause severe psychological harm to the child,” In re Smith, 137 Wn.2d at 20, 969 P.2d at 30; and harm to the adult may also ensue. In the design and elaboration of their visitation laws, States may be entitled to consider that certain relationships are such that to avoid the risk of harm, a best interests standard can be employed by their domestic relations courts in some circumstances.
Indeed, contemporary practice should give us some pause before rejecting the best interests of the child standard in all third-party visitation cases, as the Washington court has done. The standard has been recognized for many years as a basic tool of domestic relations law in visitation proceedings. Since 1965 all 50 States have enacted a third-party visitation statute of some sort. See ante, at 15, n. (plurality opinion). Each of these statutes, save one, permits a court order to issue in certain cases if visitation is found to be in the best interests of the child. While it is unnecessary for us to consider the constitutionality of any particular provision in the case now before us, it can be noted that the statutes also include a variety of methods for limiting parents’ exposure to third-party visitation petitions and for ensuring parental decisions are given respect. Many States [*100] limit the identity of permissible petitioners by restricting visitation petitions to grandparents, or by requiring petitioners to show a substantial relationship with a child, or both. See, e.g., Kan. Stat. Ann. § 38-129 (1993 and Supp. 1998) (grandparent visitation authorized under certain circumstances if a substantial relationship exists); N. C. Gen. Stat. §§ 50-13.2, 50-13. 2 A. 50-13.5 (1999) (same); Iowa Code § 598.35 (Supp. 1999) (same; visitation also authorized for great-grandparents); Wis. Stat. § 767.245 [***78] (Supp. 1999) (visitation authorized under certain circumstances for “a grandparent, greatgrandparent, stepparent or person who has maintained a relationship similar to a parent-child relationship with the child”). The statutes vary in other respects—for instance, some permit visitation petitions when there has been a change in circumstances such as divorce or death of a parent, see, e.g., N. H. Rev. Stat. Ann. § 458:17-d (1992), and some apply a presumption that parental decisions should control, see, e.g., Cal. Fam. Code Ann. §§ 3104(e)-(f) (West 1994); R. I. Gen. Laws § 15-5-24.3(a)(2)(v) (Supp. 1999). Georgia’s is the sole State Legislature to have adopted a general harm to the child standard, see Ga. Code Ann. § 19-7-3(c) (1999), and it did so only after the Georgia Supreme Court held the State’s prior visitation statute invalid under the Federal and Georgia Constitutions, see Brooks v. Parkerson, 265 Ga. 189, 454 S.E.2d 769, cert. denied, 516 U.S. 942, 133 L. Ed. 2d 301, 116 S. Ct. 377 (1995). [**2079] [***LEdHR2B] [2B] In light of the inconclusive historical record and case law, as well as the almost universal adoption of the best interests standard for visitation disputes, I would be hard pressed to conclude the right to be free of such review in all cases is itself “’implicit in the concept of ordered liberty.’” Glucksberg, 521 U.S. at 721 (quoting Palko v. Connecticut, 302 U.S. 319, 325, 82 L. Ed. 288, 58 S. Ct. 149 (1937)). In my view, it would be more appropriate to conclude that the constitutionality of the application of the best interests standard depends on more specific factors. In short, a fit parent’s right vis-a-vis a complete [*101] stranger is one thing; her right vis-a-vis another parent or a de facto parent may be another. The protection the Constitution requires, then, must be elaborated with care, using the discipline and instruction of the case law system. We must keep in mind that family courts in the 50 States confront these factual variations each day, and are best situated to consider the unpredictable, yet inevitable, issues that arise. Cf. Ankenbrandt v. Richards, 504 U.S. 689, 703-704, 119 L. Ed. 2d 468, 112 S. Ct.
2206 (1992).
It must be recognized, of course, that a domestic relations proceeding in and of itself can constitute state intervention that is so disruptive of the parent-child relationship that the constitutional right of a custodial parent to make certain basic determinations for the child’s welfare becomes implicated. The best interests of the child standard has at times been criticized as indeterminate, leading to unpredictable results. See, e.g., American Law Institute, Principles of the Law of Family Dissolution 2, and n. 2 (Tentative Draft No. 3, Mar. 20, 1998). If a single parent who is struggling to raise a child is faced with visitation demands from a third party, the attorney’s fees alone might destroy her hopes and plans for the child’s future. Our system must confront more often the reality that litigation can itself be so disruptive that constitutional protection may be required; and I do not discount the possibility that in some instances the best interests of the child standard may provide insufficient protection to the parent-child relationship. We owe it to the Nation’s domestic relations legal structure, however, to proceed with caution.
It should suffice in this case to reverse the holding of the State Supreme Court that the application of [***79] the best interests of the child standard is always unconstitutional in third-party visitation cases. Whether, under the circumstances of this case, the order requiring visitation over the objection of this fit parent violated the Constitution ought to be reserved for further proceedings. Because of its sweeping ruling requiring [*102] the harm to the child standard, the Supreme Court of Washington did not have the occasion to address the specific visitation order the Troxels obtained. More specific guidance should await a case in which a State’s highest court has considered all of the facts in the course of elaborating the protection afforded to parents by the laws of the State and by the Constitution itself. Furthermore, in my view, we need not address whether, under the correct constitutional standards, the Washington statute can be invalidated on its face. This question, too, ought to be addressed by the state court in the first instance.
In my view the judgment under review should be vacated and the case remanded for further proceedings.
REFERENCES: Return To Full Text Opinion
Go to Supreme Court Brief(s)
Go to Oral Argument Transcript
16A Am Jur 2d, Constitutional Law 575
USCS, Constitution, Amendment 14
L Ed Digest, Constitutional Law 528.5
L Ed Index, Children and Minors; Visits and Visitation
Annotation References:
Supreme Court’s views as to concept of “liberty” under due process clauses of Fifth and Fourteenth Amendments. 47 L Ed 2d 975.
McPhail v. Bismarck Park District, 2003 ND 4; 655 N.W.2d 411; 2003 N.D. LEXIS 3
Posted: December 27, 2010 Filed under: Cycling, Legal Case, Michigan, Release (pre-injury contract not to sue) | Tags: biking, Cycling, Day Care, Minor, Release, School Leave a commentMcPhail v. Bismarck Park District, 2003 ND 4; 655 N.W.2d 411; 2003 N.D. LEXIS 3
Scott Kondrad, a minor, by and through Shari McPhail as next friend, Plaintiff and Appellant v. Bismarck Park District, Defendant and Appellee
No. 20020196
Supreme Court of North Dakota
2003 ND 4; 655 N.W.2d 411; 2003 N.D. LEXIS 3
January 17, 2003, Filed
Prior History: [***1] Appeal from the District Court of Burleigh County, South Central Judicial District, the Honorable Bruce A. Romanick, Judge.
Disposition: AFFIRMED.
Counsel: Michael Ray Hoffman, Bismarck, N.D., for plaintiff and appellant.
Randall J. Bakke, Smith Bakke Oppegard Porsborg Wolf, Bismarck, N.D., for defendant and appellee.
Judges: Opinion of the Court by Maring, Justice. Mary Muehlen Maring, William A.
Neumann, Dale V. Sandstrom, Carol Ronning Kapsner, Gerald W. VandeWalle, C.J.
Opinion By: Mary Muehlen Maring
Opinion
[**412] Maring, Justice.
[*P1] Scott Kondrad, a minor, by and through his mother, Shari McPhail, as next friend, appealed from a summary judgment dismissing his action for damages against the Bismarck Park District for injuries suffered in a bicycle accident.
We hold a waiver and release signed by McPhail exonerates the Park District for its alleged negligence in this case, and we affirm.
I
[*P2] The bicycle accident occurred on September 9, 1999, at the Pioneer Elementary School while Kondrad was [***2] participating in BLAST, an after-school care program operated by the Park District. Kondrad fell on the school grounds while riding a bicycle owned by a child who was not part of the BLAST program. Kondrad injured his arm in the fall, and McPhail subsequently sued the Park District for damages on Kondrad’s behalf, asserting Kondrad’s injuries were the result of the Park District’s negligent supervision of the children in the BLAST program. The Park District moved for a summary judgment, claiming McPhail had released the Park District from liability for the accident.
The district court construed the waiver and release signed by McPhail, determined it exonerated the Park District from liability, and granted the Park District’s motion for dismissal of the case.
II
[*P3] On appeal, Kondrad asserts the district court erred in granting the summary judgment dismissal and in concluding that the waiver and release signed by McPhail exonerated the Park District from liability for its alleged negligence.
[*P4] Summary judgment under N.D.R.Civ.P. 56 is a procedural device for properly disposing of a lawsuit without trial if, after viewing the evidence in the light most favorable to [***3] the nonmoving party, there are no genuine issues of material fact or conflicting inferences which can reasonably be drawn from undisputed facts, or if the only issues to be resolved are questions of law. Jose v. Norwest Bank, 1999 ND 175, P7, 599 N.W.2d 293. Whether the district court properly granted summary judgment is a question of law and is reviewed de novo. Garofalo v. St. Joseph’s Hosp., 2000 ND 149, P6, 615 N.W.2d 160. On appeal, we review the evidence in the light most favorable to the party opposing the motion for summary judgment, giving that party the benefit of all favorable inferences that reasonably can be drawn from the evidence. Olander [**413] Contracting Co. v. Gail Wachter Invs., 2002 ND 65, P9, 643 N.W.2d 29.
[*P5] Resolution of this appeal requires us to interpret the “Parent Agreement” signed by McPhail when she enrolled Kondrad in the BLAST program, which included the following waiver and release language:
I recognize and acknowledge that there are certain risks of physical injury to participant in this program and I agree to assume the full risk of any such injuries, damages or loss regardless of [***4] severity which I or my child/ward may sustain as a result of participating in any activities associated with this program. I waive and relinquish all claims that I, my insurer, or my child/ward may have against the Park District and its officers, servants, and employees from any and all claims from injuries, damages or loss which I or my child/ward may have or which may accrue to me or my child/ward on account of my participation of my child/ward in this program.
Kondrad argues this language must be interpreted as exonerating the Park District from liability for damages only as to injuries sustained during “activities associated with” the BLAST program. The Park District has conceded that riding a bicycle was not an activity associated with the program. Kondrad asserts the release does not, therefore, exonerate the Park District from liability if its negligence resulted in Kondrad incurring injuries while riding the bicycle. The Park District asserts the waiver is unambiguous and released the Park District from liability for any and all injuries sustained by Kondrad while participating in the BLAST program. The Park District argues the waiver and release exonerated it from [***5] liability for negligence resulting in injury or damages to Kondrad while participating in the program irrespective of whether, at the time of the injury, Kondrad was involved in a planned activity associated with the program.
[*P6] Generally, the law does not favor contracts exonerating parties from liability for their conduct. Reed v. Univ. of North Dakota, 1999 ND 25, P22, 589 N.W.2d 880. However, the parties are bound by clear and unambiguous language evidencing an intent to extinguish liability, even though exculpatory clauses are construed against the benefitted party. Id. When a contract is reduced to writing, the intention of the parties is to be ascertained from the writing alone, if possible. N.D.C.C. § 9-07-04; Meide v. Stenehjem ex rel. State, 2002 ND 128, P7, 649 N.W.2d 532. The construction of a written contract to determine its legal effect is a question of law for the court to decide, and, on appeal, this Court will independently examine and construe the contract to determine if the trial court erred in its interpretation of it. Egeland v. Continental Res., Inc., 2000 ND 169, P10, 616 N.W.2d 861. [***6] The issue whether a contract is ambiguous is a question of law. Lenthe Invs., Inc. v. Serv. Oil, Inc., 2001 ND 187, P14, 636 N.W.2d 189. An unambiguous contract is particularly amenable to summary judgment. Meide, 2002 ND 128, P7, 649 N.W.2d 532.
[*P7] We conclude the language of waiver and release under the agreement signed by McPhail is clear and unambiguous. We construe all provisions of a contract together to give meaning to every sentence, phrase, and word. U.S. Bank Nat’l Ass’n v. Koenig, 2002 ND 137, P9, 650 N.W.2d 820. The assumption of risk and waiver clauses are separate and distinct. Each contains a clearly expressed meaning and consequence. Under the assumption of risk clause, McPhail agreed to assume the full risk of injury and damages resulting from Kondrad participating in [**414] any activities associated with the BLAST program. In addition, under the waiver and release clause, McPhail waived and relinquished all claims against the Park District for injuries or damages incurred on account of Kondrad’s participation in the BLAST program. The language of waiver and release is not limited to only those injuries incurred [***7] while participating in activities associated with the program, but to all injuries incurred by the child on account of his participation in the program.
[*P8] It is undisputed that Kondrad’s bicycle accident occurred on the school grounds while Kondrad was participating in the BLAST program. This is the very type of situation for which the Park District, under the release language, insulated itself from liability for alleged negligence while operating the after-school care program. Under the unambiguous language of the agreement, McPhail exonerated the Park District from liability for injury and damages incurred by Kondrad while participating in the program and caused by the alleged negligence of the Park District. 1
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Under N.D.C.C. § 9-08-02 a party is precluded from contractually exonerating itself from liability for willful acts. See Reed v. Univ. of North Dakota, 1999 ND 25, P22 n.4, 589 N.W.2d 880. The release in this case is not specifically limited to exonerating the Park District from liability for only negligent conduct.
However, Kondrad’s claim against the Park District is based on negligence, and he has not argued the release is invalid because it purports to exonerate the Park District from liability for intentional or willful acts. We do not, therefore, address that issue in this opinion.
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[***8] III
[*P9] We hold the Parent Agreement signed by McPhail clearly and unambiguously exonerates the Park District for injuries sustained by Kondrad while participating in the BLAST program and which were allegedly caused by the negligent conduct of the Park District. We further hold, therefore, the district court did not err in granting summary judgment dismissing Kondrad’s action against the Park District, and we affirm.
[*P10] Mary Muehlen Maring
William A. Neumann
Dale V. Sandstrom
Carol Ronning Kapsner
Gerald W. VandeWalle, C.J.
Land Owner of cycling track not liable for those dangers you can see.
Posted: December 20, 2010 Filed under: Assumption of the Risk, Cycling, Michigan | Tags: BMX, BMX racer, dirt track, Licensee, Michigan, Open and Obvious, Premises Liability, USA Cycling Leave a commentCottom v. USA Cycling, Inc, 2002 U.S. Dist. LEXIS 6745
In this Federal District Court case from Michigan, the court discusses the open and obvious rule applied to people on another’s land. In this case, the plaintiff entered an unfinished BMX or dirt bike track being built by USA Cycling, Inc., and was injured in loose dirt. Because the condition of the track was open and obvious he could not recover from the defendant.
The plaintiff was a fairly experienced BMX rider. He had seen the dirt track being built and went over to investigate. He saw construction workers as well as cyclists on the track. He rode around the track once without incident. On the second lap, he fell when he hit a rock or slipped on loose gravel hyperextended his knee, and broke his leg.
Under Michigan’s law, the plaintiff was identified as a licensee. A licensee is someone who:
…is a person who is privileged to enter the land of another by virtue of the possessor’s consent. A landowner owes a licensee a duty only to warn the licensee of any hidden dangers the owner knows or has reason to know of, if the licensee does not know or have reason to know of the dangers involved. The landowner owes no duty of inspection or affirmative care to make the premises safe for the licensee’s visit.
The issue is whether the danger that injured the plaintiff was hidden or open and obvious. To prove the danger that injured the plaintiff was not open and obvious the plaintiff must complete a two-step test.
- The plaintiff must prove that the defendant should have known of the potentially dangerous condition; and,
- The plaintiff did not know about the dangerous condition.
The court stated the plaintiff failed to prove the second part of the test because there is no requirement to safeguard licensees from dangers that are open and obvious because those dangers come with their own warnings. The open and obvious test is an objective one, whether a reasonable person in the position of the plaintiff would have foreseen the danger.
Cottom, an experienced BMX cyclist, was able to inspect the track and the track conditions before his accident by watching other bikers on the track and then riding on the track once himself. A reasonable person in this position would foresee the dangers the track presented, making the condition of the track open and obvious. In fact, most Americans have ridden bicycles in their youth and know that bike riders lose control of their bikes in loose dirt or that a rock will cause a bike to lose traction and fall.
First, the unpacked, gravelly condition of the track surface did not make the likelihood of injury higher than an ordinary, complete bike track. It is just as difficult for an ordinarily prudent person to ride a bike on a race track of loose dirt without losing control of the bike or falling as it is on any other dirt track. Second, there was not a high potential for severe harm. Thousands of people ride bikes every day, and many of them fall while riding their bikes on sidewalks, bike paths, tracks, or trails. Bumps, bruises, and scrapes, or occasionally broken bones or more serious injuries, are the normal incidents of bike riding, especially BMX bike riding as in this case.
Because the plaintiff could inspect the track himself, had seen other bikers on the track, and had ridden the track once before falling on this second lap the plaintiff had a chance to see any dangers. The danger that caused the injury, therefore, was open and obvious and the defendant did not owe any greater duty to the defendant licensee for the danger.
So?
This decision besides explaining the landowner’s duty for hidden dangers and the defense of open and obvious danger has great language in it for any cycling decision. The court sets forth facts that falling is a part of cycling. “Bumps, bruises, and scrapes or occasionally broken bones or more serious injures” are normal for bike riders. If you are a land owner, bike rental company, or cycling retailer this is important language to keep available or even incorporate into your release.
What do you think? Leave a comment.
Jim Moss is an attorney specializing in the legal issues of the outdoor recreation community. He represents guides, guide services, and outfitters both as businesses and individuals and the products they use for their business. He has defended Mt. Everest guide services, summer camps, climbing rope manufacturers; avalanche beacon manufacturers, and many more manufacturers and outdoor industries. Contact Jim at Jim@Rec-Law.us Jim is the author or co-author of eight books about legal issues in the outdoor recreation world; the latest is Outdoor Recreation Insurance, Risk
Management, and Law. To Purchase Go Here:
To see Jim’s complete bio go here and to see his CV you can find it here. To find out the purpose of this website go here.
If you are interested in having me write your release, download the form and return it to me.
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Cottom v. USA Cycling, Inc, 2002 U.S. Dist. LEXIS 6745
Posted: December 20, 2010 Filed under: Assumption of the Risk, Cycling, Legal Case, Michigan, Mountain Biking | Tags: BMX, BMX Racing, Cycling, Gier Park, Land Owner, Michigan, Mountain biking, Premises Liability, USA Cycling Leave a commentTo Read an Analysis of this decision see
Land Owner of the cycling track is not liable for those dangers you can see.
You can’t sue for a danger that you could have seen when biking on someone’s land
Cottom v. USA Cycling, Inc, 2002 U.S. Dist. LEXIS 6745
Bradley J. R. Cottom and Melissa Cottom, Plaintiffs, v. USA Cycling, Inc., Defendant.
Case No. 1:01-CV-474
United States District Court for the Western District of Michigan, Southern Division
2002 U.S. Dist. LEXIS 6745
April 11, 2002, Decided
April 11, 2002, Filed
Counsel: For BRADLEY J.R. COTTOM, MELISSA COTTOM, plaintiffs: Michael J. Cronkright, Michael J. Cronkright, PC, Lansing, MI.
For USA CYCLING INC, defendant: John J. Hoffman, Thomas, DeGrood, Witenoff & Hoffman, Southfield, MI.
Judges: GORDON J. QUIST, UNITED STATES DISTRICT JUDGE.
Opinion By: GORDON J. QUIST
Opinion:
Plaintiffs, Bradley Cottom (“Cottom”) and his wife Melissa, filed this premises liability action against Defendant, USA Cycling, Inc. (“USA Cycling”), in state court after Cottom suffered injuries in a bicycling accident. USA Cycling removed the action to this Court based on diversity jurisdiction, and the matter is now before the Court on USA Cycling’s motion for summary judgment. Oral argument on the Motion was heard on April 9, 2002.
Facts
Cottom, an avid dirt bicycle rider, participated in competitive BMX bicycle racing from age 14 to 20. (Cottom Dep. at 4-5, Pl.’s Br. Resp. Ex. A.) Since that time, he has primarily restricted himself to recreational riding on streets and bike trails. n1 (Id. at 10-11, 20.) At approximately 5 p.m. on July 12, 2000, Cottom took his high performance Diamondback Reactor BMX bicycle to Gier Park in Lansing, Michigan. (Id. at 6, 15.) USA Cycling was constructing a dirt bike race track at the park, and Cottom went to investigate the progress of the track construction. (Id. at 6-7.) Cottom had been to the park approximately one month before and had seen a bulldozer working at the site. (Id. at 7-9.) At that time, he observed approximately 12 riders using the track. (Id. at 9.) When Cottom arrived at the park on July 12, he saw a bulldozer and men who appeared to be construction workers, but they were not working on the track at the time. (Id. at 47, 103.) Other people present at the park were picking up rocks and removing them from the track. (Id. at 93, 103.) There was no fence or other barricade around the track, and no warning or construction signs were posted. (Compl. PP 8-9, 19f.) Other riders were using the dirt track, and Cottom retrieved his bike from his truck in order to join them on the track. (Cottom Dep. at 26-28.) The track was dry, and it was still daylight when he began to ride. (Id. at 26.)
n1 Cottom was 36 years old at the time of his deposition in November 2001. (Cottom Dep. at 4.)
Cottom rode his bike around the track one time without incident. (Id. at 29.) Plaintiffs allege in the Complaint that Cottom stopped to discuss the track conditions with a worker at the track and that the worker assured him that the track was safe. (Compl. P 10.) Plaintiffs have not presented evidence regarding the identity of this person. It is unknown whether the person was an employee or agent of USA Cycling, a construction worker employed by an independent contractor, or merely a bystander, a passerby, or a volunteer picking up rocks. There is nothing in the record to indicate that the person had any more experience on the track or knowledge of the track conditions than Cottom had.
On his second lap around the track, Cottom was riding through a banked turn and heading toward a jump when he lost control of his bike. (Cottom Dep. at 61.) He hyperextended his knee while attempting to recover control and fell to the ground, injuring his leg. (Id. at 32-34, 40.) Cottom testified at his deposition that he was not sure exactly what caused his accident, but he surmised that his tire may have hit a rock or a rut or sank into loose, gravelly dirt. (Id. at 30-32, 92-93.) According to Cottom, his bike was functioning properly and he was “taking it easy” by traveling between 5-10 miles per hour at the time, so neither the condition of his bike nor his speed caused him to lose control. (Id. at 41, 91-92.) Cottom’s wife was present at the park at the time, but she did not see the fall. (Id. at 42.)
Cottom was taken to a hospital where he was admitted for four days. (Compl. P 13.) He fractured his lower left leg in the fall and has undergone three corrective surgeries on his leg and knee since the accident. n2 (Medical Records, Pl.’s Br. Resp. Ex. B.)
n2 The Complaint states that Cottom injured his right leg, but at his deposition, Cottom testified that it was his left leg that was injured. (Compl. PP 11, 23; Cottom Dep. at 33.) Cottom’s medical records confirm that it was his left leg that was fractured. (Medical Records, Pls.’ Br. Resp. Ex. B.)
Standard
[HN1] Summary judgment is appropriate if there is no genuine issue as to any material fact and the moving party is entitled to a judgment as a matter of law. Fed. R. Civ. P. 56. The rule requires that the disputed facts be material. Material facts are facts which are defined by substantive law and are necessary to apply the law. Anderson v. Liberty Lobby, Inc., 477 U.S. 242, 248, 106 S. Ct. 2505, 2510, 91 L. Ed. 2d 202 (1986). A dispute over trivial facts which are not necessary in order to apply the substantive law does not prevent the granting of a motion for summary judgment. Id. at 248, 106 S. Ct. at 2510. The rule also requires the dispute to be genuine. A dispute is genuine if a reasonable jury could return judgment for the non-moving party. Id. This standard requires the non-moving party to present more than a scintilla of evidence to defeat the motion. Id. at 251, 106 S. Ct. at 2511 (citing Improvement Co. v. Munson, 81 U.S. 442, 14 Wall. 442, 448, 20 L. Ed. 867 (1872)).
[HN2] A moving party who does not have the burden of proof at trial may properly support a motion for summary judgment by showing the court that there is no evidence to support the non-moving party’s case. Celotex Corp. v. Catrett, 477 U.S. 317, 324-25, 106 S. Ct. 2548, 2553-54, 91 L. Ed. 2d 265 (1986). If the motion is so supported, the party opposing the motion must then demonstrate with “concrete evidence” that there is a genuine issue of material fact for trial. Id.; Frank v. D’Ambrosi, 4 F.3d 1378, 1384 (6th Cir. 1993). The court must draw all inferences in a light most favorable to the non-moving party, but may grant summary judgment when “the record taken as a whole could not lead a rational trier of fact to find for the non-moving party.” Agristor Financial Corp. v. Van Sickle, 967 F.2d 233, 236 (6th Cir. 1992)(quoting Matsushita Elec. Indus. Co., Ltd. v. Zenith Radio Corp., 475 U.S. 574, 587, 106 S. Ct. 1348, 1356, 89 L. Ed. 2d 538 (1986)).
Analysis
The parties agree that Michigan law governs the substantive issues of this case because all of the events occurred in Michigan, the forum state. (Def.’s Br. Supp. at 8-9; Pls.’ Br. Resp. at 4.) See Haque Travel Agency, Inc. v. Travel Agents Int’l, Inc., 808 F. Supp. 569, 572 (E.D. Mich. 1992).
USA Cycling makes several arguments as to why it is entitled to summary judgment. Because the Court believes that the “open and obvious” argument is dispositive, the Court will address only that argument.
USA Cycling argues that because the condition of the track was open and obvious, it did not owe Cottom a duty of protection or warning. USA Cycling notes that Cottom was able to observe the track prior to riding, that he rode around the track one time without falling, and that he was able to get a feel for the track conditions prior to his accident. Thus, according to USA Cycling, there were no hidden dangers present and it cannot be held liable for Cottom’s accident. The Court agrees.
For the purposes of this motion, the parties agree that Cottom entered USA Cycling’s premises as a licensee. (Def.’s Br. Supp. at 10; Pls.’ Br. Resp. at 8-9.) The Michigan Supreme Court has defined licensee status and explained the duty owed to a licensee by a premises owner:
[HN3] A “licensee” is a person who is privileged to enter the land of another by virtue of the possessor’s consent. A landowner owes a licensee a duty only to warn the licensee of any hidden dangers the owner knows or has reason to know of, if the licensee does not know or have reason to know of the dangers involved. The landowner owes no duty of inspection or affirmative care to make the premises safe for the licensee’s visit.
Stitt v. Holland Abundant Life Fellowship, 462 Mich. 591, 596-97, 614 N.W.2d 88, 91-92 (2000)(citation omitted).
Plaintiffs contend that USA Cycling knew of the dangers presented by an unfinished dirt track, and they submit as evidence publications from USA Cycling regarding safety guidelines and its recommendations concerning BMX track conditions that discuss the dangers of unpacked, loose dirt tracks. (Insurance Guidelines and Safety Manual, Pls.’ Br. Resp. Ex. F; Building the Track – Suggestions, Pls.’ Br. Resp. Ex. E.) Even assuming that USA Cycling knew of the dangers presented by the track at Gier Park, this assertion only gets Plaintiffs halfway over their burden of proof. In order to hold USA Cycling liable for Cottom’s accident, Plaintiffs must not only show that USA Cycling knew or should have known of the potential danger on the premises but also that Cottom did not know about it. This is because [HN4] there is no duty to take steps to safeguard licensees from conditions that are open and obvious, for “such dangers come with their own warning.” Pippin v. Atallah, 245 Mich. App. 136, 143, 626 N.W.2d 911, 914 (2001). A danger is open and obvious if “‘an average user with ordinary intelligence [would] have been able to discover the danger and the risk presented upon casual inspection.'” Abke v. Vandenberg, 239 Mich. App. 359, 361-62, 608 N.W.2d 73, 75 (2000) (per curiam) (alteration in original) (quoting Novotney v. Burger King Corp., 198 Mich. App. 470, 475, 499 N.W.2d 379, 381 (1993)). The test is an objective one, asking whether a reasonable person in the position of the plaintiff would foresee the danger. Hughes v. PMG Bldg., Inc., 227 Mich. App. 1, 11, 574 N.W.2d 691, 696 (1997).
Cottom, an experienced BMX cyclist, was able to casually inspect the track and the track conditions before his accident by watching other bikers on the track and then riding on the track once himself. A reasonable person in this position would foresee the dangers the track presented, making the condition of the track open and obvious. In fact, most Americans have ridden bicycles in their youth and know that bike riders lose control of their bikes in loose dirt or that a rock will cause a bike to tip over. Therefore, USA Cycling is absolved of potential liability unless Plaintiffs can show that the condition of the track posed “an unreasonable risk of harm.” Abke, 239 Mich. App. at 361, 608 N.W.2d at 75 (citing Millikin v. Walton Manor Mobile Home Park, Inc., 234 Mich. App. 490, 498-99, 595 N.W.2d 152, 156-57 (1999)). Michigan courts have explained that “special aspects of a condition [might] make even an open and obvious risk unreasonably dangerous.” Lugo v. Ameritech Corp., 464 Mich. 512, 517, 629 N.W.2d 384, 386 (2001). In Lugo, the Michigan Supreme Court discussed the “special aspect” exception to the open and obvious doctrine:
[HN5] With regard to open and obvious dangers, the critical question is whether there is evidence that creates a genuine issue of material fact regarding whether there are truly “special aspects” of the open and obvious condition that differentiate the risk from typical open and obvious risks so as to create an unreasonable risk of harm, i.e., whether the “special aspect” of the condition should prevail in imposing liability upon the defendant or the openness and obviousness of the condition should prevail in barring liability.
. . . .
. . . In sum, only those special aspects that give rise to a uniquely high likelihood of harm or severity of harm if the risk is not avoided will serve to remove that condition from the open and obvious danger doctrine.
Id. at 517-19, 629 N.W.2d at 387-88. For example, a pothole in a parking lot presents an open and obvious risk for which the premises owner would not normally be liable if someone were to trip and fall because of the hole. An unguarded, 30-foot-deep pit might present an unreasonable risk, however, because of the danger of death or severe injury. Id. at 520, 629 N.W.2d at 388.
Cottom has failed to present a genuine issue of material fact about whether the unfinished condition of the track made it unreasonably dangerous. First, the unpacked, gravelly condition of the track surface did not make the likelihood of injury higher than an ordinary, complete bike track. It is just as difficult for an ordinarily prudent person to ride a bike on a race track of loose dirt without losing control of the bike or falling as it is on any other dirt track. Second, there was not a high potential for severe harm. Thousands of people ride bikes everyday, and many of them fall while riding their bikes on sidewalks, bike paths, tracks or trails. Bumps, bruises, and scrapes, or occasionally broken bones or more serious injuries, are the normal incidents of bike riding, especially BMX bike riding as in this case. The track at Gier Park presented these same types of dangers, making it more like an ordinary pothole and less like a deep, unguarded pit. Finally, Cottom has failed to support with any evidence the allegation that an employee or agent working on the track assured him that it was safe for use. There is no indication in the record that this person was actually an employee or agent of USA Cycling rather than a passerby or bystander who came to watch people ride on the track. Moreover, there is nothing to demonstrate that he or she was any more knowledgeable about the safety of the track conditions than was Cottom. In fact, Cottom had the benefit of riding around the track one time and experiencing the track conditions firsthand, and he himself concluded that the track was suitable for riding. (Cottom Dep. at 48-49.)
USA Cycling is entitled to summary judgment because the dangers presented by the track were open and obvious and Plaintiffs have failed to show that there were special aspects of the track making it unreasonably dangerous.
Conclusion
For the foregoing reasons, the Court will grant USA Cycling’s motion for summary judgment.
An Order consistent with this Opinion will be entered.
Dated: APR 11 2002
GORDON J. QUIST
UNITED STATES DISTRICT JUDGE
ORDER
For the reasons stated in the Opinion filed this date,
IT IS HEREBY ORDERED that Defendant’s Motion for Summary Judgment (docket no. 24) is GRANTED.
This case is closed.
Dated: APR 11 2002
GORDON J. QUIST
UNITED STATES DISTRICT JUDGE
States that do not Support the Use of a Release
Posted: December 16, 2010 Filed under: Arizona, Hawaii, Louisiana, Montana, Release (pre-injury contract not to sue), West Virginia | Tags: Duty of care, Insurance, Law, Liability insurance, Louisiana, Montana, Release, Virginia 9 CommentsAssumption of the risk is your best defense in these states
These states do not allow a recreational business or program to use a release to stop litigation.
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State |
Citation |
Issues |
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Releases are Void |
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C.C. Art. 2004 (2005) |
Any clause is null that, in advance, excludes or limits the liability of one party for intentional or gross fault that causes damage to the other party. Any clause is null that, in advance, excludes or limits the liability of one party for causing physical injury to the other party. |
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MCA § 27-1-702 |
All contracts that have for their object, directly or indirectly, to exempt anyone from responsibility for the person’s own fraud, for willful injury to the person or property of another, or for violation of law, whether willful or negligent, are against the policy of the law. |
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Johnson’s Adm’x v. Richmond and Danville R.R. Co., 86 Va. 975, 11 S.E. 829 (1890) |
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Use of a Release is Restricted |
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Arizona |
Phelps v. Firebird Raceway, Inc., 2005 Ariz. LEXIS 53 |
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New Mexico |
Berlangieri v. Running Elk Corporation, 132 N.M. 332;2002 NMCA 60;48 P.3d 70;2002 N.M. App. 39;41 N.M. St. B. Bull. 25 |
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West Virginia |
Kyriazis v. University of West Virginia; 192 W. Va. 60; 450 S.E.2d 649; 1994 W. Va. LEXIS 161 |
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Use of Releases is Probably Void |
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Connecticut |
Hanks v. Powder Ridge Restaurant Corp., 276 Conn. 314, 885 A.2d 734 (2005) and Reardon v. Windswept Farm, LLC, Et Al., 280 Conn. 153; 905 A.2d 1156; 2006 Conn. LEXIS 330 |
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Wisconsin |
Atkins v. Swimwest Family Fitness Center, 2005 WI 4; 2005 Wisc. LEXIS 2 |
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Vermont |
Dalury v. S-K-I, Ltd, 164 Vt 329; 670 A.2d 795; 1995 Vt. Lexis 127 |
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Specific uses of Releases are Void |
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Alaska |
Sec. 05.45.120(a). Use of liability releases |
A ski area operator may not require a skier to sign an agreement releasing the ski area operator from liability in exchange for the right to ride a ski area tramway and ski in the ski area. A release that violates this subsection is void and may not be enforced. |
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Hawaii |
King v. CJM Country Stables, 315 F. Supp. 2d 1061, 2004 U.S. Dist. LEXIS 7511 (D. Haw. 2004) |
Found that Hawaii statute § 663-1.54. Recreational activity liability prevented the use of a release |
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New York |
Every covenant, agreement or understanding in or in connection with, or collateral to, any contract, membership application, ticket of admission or similar writing, entered into between the owner or operator of any pool, gymnasium, place of amusement or recreation, or similar establishment and the user of such facilities, pursuant to which such owner or operator receives a fee or other compensation for the use of such facilities, which exempts the said owner or operator from liability for damages caused by or resulting from the negligence of the owner, operator or person in charge of such establishment, or their agents, servants or employees, shall be deemed to be void as against public policy and wholly unenforceable. |
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What do you think? Leave a comment.
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Complicated serious of cases created to defend against a mountaineering death.
Posted: December 13, 2010 Filed under: California, Mountaineering, Release (pre-injury contract not to sue) | Tags: fatality, Geographic Expeditions, Inc., Kilimanjaro, Mount Kilimanjaro, Mountain Climbing, Mountaineering, Mt Kilimanjaro Leave a commentWrong documents were used in front of the wrong judge. However, the concept of fairness wins out when the court is presented with a fatality and overbearing agreements.
GeoEx, Geographic Expeditions, a California company runs guided trips on Mount Kilimanjaro. A mother and son from Colorado wanted to climb Mount Kilimanjaro and signed up for the climb. While climbing the mountain, the son experienced fatigue and trouble sleeping. He was sent back down the mountain with an assistant guide. During the descent, he died.
The plaintiffs claim the deceased died because GeoEx did not recognize and properly treat the deceased condition. Supplemental oxygen was available but not administered nor was a “rapid descent” ordered.
GeoEx is not a physician and diagnosing illness by anyone other than a physician is illegal, but who cares in litigation…..
HAPE is difficult to diagnose by a physician. Someone with HAPE may not be able to descend quickly and oxygen rarely does anything to treat HAPE.
There is a screw up because someone did not get the correct medical information in front of a judge.
The defendant in this case did not use a release. Instead, it used a complicated document identified as a “participation contract.” This agreement had a clause that stated:
I agree that in the unlikely event a dispute of any kind arises between me and GeoEx, the following conditions apply: (a) the dispute will be submitted to a neutral third-party mediator in San Francisco, California, with both parties’ equally dividing the costs of such a mediator. If the dispute cannot be resolved through mediation, then (b) the dispute will be submitted for binding arbitration to the American Arbitration Association in San Francisco, California; (c) the dispute will be governed by California law; and (d) the maximum amount of recovery to which I will be entitled under any circumstances will be the sum of the land and air cost of my trip with GeoEx. I agree that this is a fair and reasonable limitation on the damages, of any sort whatsoever, that I may suffer.
A suit was filed in California by the plaintiff. The California judge held under California law that the agreement was unconscionable. California has a specific statute that holds if a judge finds a contract clause unconscionable it can throw the clause out.
Cal Civ Code § 1670.5 (2010)
§ 1670.5. Unconscionable contract
(a) If the court as a matter of law finds the contract or any clause of the contract to have been unconscionable at the time it was made the court may refuse to enforce the contract, or it may enforce the remainder of the contract without the unconscionable clause, or it may so limit the application of any unconscionable clause as to avoid any unconscionable result.
(b) When it is claimed or appears to the court that the contract or any clause thereof may be unconscionable the parties shall be afforded a reasonable opportunity to present evidence as to its commercial setting, purpose, and effect to aid the court in making the determination.
The court found the following parts of the contract as unconscionable. The contract required mandatory arbitration with the costs to be split by both parties. Even if the deceased’s survivors won the arbitration, they still had to indemnify GeoEx. The total amount of money the deceased family could win was what they spent on the trip, or in this case $16,000.
Unconscionable is a legal term that means the parties were in an unequal bargaining position. The was offered the contract on a take it or leave it basis and the terms of the contract are so one-sided and unfair to the wronged party that the contract is unconscionable. Another term applied to contracts of this type is adhesion.
GeoEx argued that the contract was the same as other outfitters would use and the court did not believe them. [Well Yes and No. I do not know of an outfitter that would not use a release. However, I’m not sure about a participate contract.]
This was in a decision in the California Court System Lhotka v. Geographic Expeditions, Inc., 181 Cal. App. 4th 816; 104 Cal. Rptr. 3d 844; 2010 Cal. App. LEXIS 114
GeoEx then filed a complaint in the Federal Court to compel arbitration of the claim as set forth in the contract. The federal court trial judge dismissed the complaint. Geographic Expeditions, Inc., Petitioner, v. The Estate Of Jason Lhotka, 2008 U.S. Dist. LEXIS 105691. The dismissal was appealed and overturned. Geographic Expeditions, Inc., v. The Estate Of Jason Lhotka, 599 F.3d 1102; 2010 U.S. App. LEXIS 6606.
This decision centered on whether the defenses of GeoEx removed the case from Federal jurisdiction. To maintain a case in Federal Court the parties must be from different states and the amount in controversy must be more than $75,000. Here the parties are from California and Colorado. The issue was if the arbitration clause was upheld then the damages would be limited to the amount the parties spent on the trip which was the limitation in the contract they signed or $16,000.
So?
At this point, I’m not sure what the status of the case is. This is what I know.
1. You need to use a release. Releases are recognized by the courts and accepted by the courts. Releases are used by everyone and probably not subject to this type of attack.
2. Contracts for non-necessities or as in this case recreation are not held to the standard of review as a contract for necessities or something that a family must have to survive. This court ignored this proposition.
3. The court brought up the ancient idea that the contract was unconscionable because it was the only option and un-modifiable by the parties. This may force companies to offer to allow people to take a trip without signing a release for a different price. But what price can you come up with to write a check for any injury?
4. The arbitration clause prevented the deceased family from recovering their damages, even if they proved gross negligence. The arbitration clause really ticked off the California court.
The simple fact is if you screw up, and you prevent lawsuits to the point that the court finds the position of the injured party to be unconscionable. The court is going to make sure you lose. If your contracts are not only one-sided but punitive on top of that, the court is going to throw out your agreements.
You can stop a lawsuit. Most states agree with this idea. You cannot stop an injured party from suing and expect them to pay you if you do. Courts do not uphold indemnification clauses in releases. Nor will they uphold an indemnification clause or a fee splitting clause like this when the parties are at such unequal bargaining position and the damages are so great.
Win, but don’t attempt, in advance, to beat your guests into the ground to do so.
For other cases on release see:
Sky Diving Release defeats claim by Naval Academy student
Aspen Skiing Company Release stops claim by injured guest hit by an employee on snowmobile.
If you make a promise to attract participants, you must come through on your promises.
New Florida law allows a parent to sign away a child’s right to sue for injuries.
For general articles about releases see: What is a Release?
What do you think? Leave a comment.
| Jim Moss is an attorney specializing in the legal issues of the outdoor recreation community. He represents guides, guide services, and outfitters both as businesses and individuals and the products they use for their business. He has defended Mt. Everest guide services, summer camps, climbing rope manufacturers; avalanche beacon manufacturers, and many more manufacturers and outdoor industries. Contact Jim at Jim@Rec-Law.us |
Jim is the author or co-author of eight books about legal issues in the outdoor recreation world; the latest is Outdoor Recreation Insurance, Risk Management, and Law. To Purchase Go Here:
To see Jim’s complete bio go here and to see his CV you can find it here. To find out the purpose of this website go here.
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By Recreation Law Rec-law@recreation-law.com James H. Moss
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Lhotka v. Geographic Expeditions, Inc., 181 Cal. App. 4th 816; 104 Cal. Rptr. 3d 844; 2010 Cal. App. LEXIS 114
Posted: December 13, 2010 Filed under: California, Mountaineering, Release (pre-injury contract not to sue) | Tags: Kilimanjaro, Mount Kilimanjaro, Mountain Climbing, Mountaineering, Mt Kilimanjaro Leave a commentLhotka v. Geographic Expeditions, Inc., 181 Cal. App. 4th 816; 104 Cal. Rptr. 3d 844; 2010 Cal. App. LEXIS 114
ELENA LHOTKA, Individually and as Executor, etc., et al., Plaintiffs and Respondents, v. GEOGRAPHIC EXPEDITIONS, INC., Defendant and Appellant.
A123725
COURT OF APPEAL OF CALIFORNIA, FIRST APPELLATE DISTRICT, DIVISION THREE
181 Cal. App. 4th 816; 104 Cal. Rptr. 3d 844; 2010 Cal. App. LEXIS 114
January 29, 2010, Filed
SUBSEQUENT HISTORY: Review denied by Lhotka (Elena) v. Geographic Expeditions, Inc., 2010 Cal. LEXIS 3320 (Cal., Apr. 14, 2010)
PRIOR HISTORY: [***1]
Superior Court of San Francisco City & County, No. 477496, Patrick J. Mahoney, Judge.
SUMMARY:
CALIFORNIA OFFICIAL REPORTS SUMMARY
The trial court denied a travel company’s motion to compel arbitration of a wrongful death action brought against it by the survivors of a client who died on a hiking expedition. The travel company told participants that they had to sign an unmodified release form to participate in the expedition and that other travel companies had the same requirements. The agreement limited recovery to the amount paid for the trip, required the survivors to indemnify the travel company for its legal costs and fees if they pursued any released claims, and required them to pay half of any mediation fees and to mediate and arbitrate in a city far from their home. (Superior Court of the City and County of San Francisco, No. 477496, Patrick J. Mahoney, Judge.)
The Court of Appeal affirmed, observing that a sliding scale is applied in determining unconscionability so that the more substantively oppressive a term, the less evidence of procedural unconscionability is required to find it unenforceable, and vice versa. Although the activity was nonessential and recreational, the company’s representation that its competitors would insist on the same terms was sufficient to find procedural unconscionability. The one-sided nature of the terms established substantive unconscionability, and the trial court reasonably found under Civ. Code, § 1670.5, subd. (a), that the agreement was so permeated by unconscionability that severing the limitation on damages would not further the interests of justice. (Opinion by Siggins, J., with McGuiness, P. J., and Pollak, J., concurring.) [*817]
HEADNOTES
CALIFORNIA OFFICIAL REPORTS HEADNOTES
CA(1)
(1) Contracts § 13.4—Legality—Enforceability—Unconscionable Contracts—Procedural and Substantive Elements.—Unconscionability includes an absence of meaningful choice on the part of one of the parties together with contract terms which are unreasonably favorable to the other party. Phrased another way, unconscionability has both a procedural and a substantive element. The procedural element requires oppression or surprise. Oppression occurs where a contract involves lack of negotiation and meaningful choice, surprise where the allegedly unconscionable provision is hidden within a prolix printed form. The substantive element concerns whether a contractual provision reallocates risks in an objectively unreasonable or unexpected manner. Under this approach, both the procedural and substantive elements must be met before a contract or term will be deemed unconscionable. Both, however, need not be present to the same degree. A sliding scale is applied so that the more substantively oppressive the contract term, the less evidence of procedural unconscionability is required to come to the conclusion that the term is unenforceable, and vice versa.
CA(2)
(2) Contracts § 13.4—Legality—Enforceability—Unconscionable Contracts—Recreational Activities.—While the nonessential nature of recreational activities is a factor to be taken into account in assessing whether a contract is oppressive, it is not necessarily the dispositive factor. The customer’s ability to walk away rather than sign the offending contract is not dispositive. The availability of similar goods or services elsewhere may be relevant to whether a contract is one of adhesion, but even if it is not an adhesion contract, it can still be found unconscionable. Moreover, in a given case, a contract may be adhesive even if the weaker party can reject the terms and go elsewhere.
CA(3)
(3) Contracts § 13.4—Legality—Enforceability—Unconscionable Contracts—Oppression.—The option not to participate, like any availability of market alternatives, is relevant to the existence, and degree, of oppression. But a court must also consider the other circumstances surrounding the execution of the agreement. Oppression arises from an inequality of bargaining power which results in no real negotiation and an absence of meaningful choice.
CA(4)
(4) Contracts § 13.4—Legality—Enforceability—Unconscionable Contracts—Substantive Unconscionability.—Substantive unconscionability focuses on the one-sidedness or overly harsh effect of a contract term or clause. [*818]
CA(5)
(5) Contracts § 13.4—Legality—Enforceability—Unconscionable Contracts—Arbitration Agreements—Severance of Unconscionable Provision.—A trial court has discretion under Civ. Code, § 1670.5, subd. (a), to refuse to enforce an entire agreement if the agreement is permeated by unconscionability. An arbitration agreement can be considered permeated by unconscionability if it contains more than one unlawful provision. Such multiple defects indicate a systematic effort to impose arbitration not simply as an alternative to litigation, but as an inferior forum that works to the stronger party’s advantage. The overarching inquiry is whether the interests of justice would be furthered by severance.
CA(6)
(6) Contracts § 13.4—Legality—Enforceability—Unconscionable Contracts—Arbitration Agreements.—The trial court, in denying a travel company’s motion to compel arbitration of a wrongful death action brought by the survivors of a client who died on a hiking expedition, identified multiple elements of the agreement that indicated the travel company designed its arbitration clause not simply as an alternative to litigation, but as an inferior forum that would give it an advantage. In addition to limiting the survivors’ recovery, the agreement required them to indemnify the travel company for its legal costs and fees if they pursued any claims covered by the release agreement. These one-sided burdens were compounded by the requirements that the survivors pay half of any mediation fees and mediate and arbitrate in the travel company’s choice of venue, far from their home. It was within the trial court’s discretion to conclude this agreement was so permeated by unconscionability that the interests of justice would not be furthered by severing the damages limitation clause and enforcing the remainder.
[Cal. Forms of Pleading and Practice (2009) ch. 140, Contracts, § 140.25; 2 Crompton et al., Matthew Bender Practice Guide: Cal. Contract Litigation (2009) § 18.19.]
COUNSEL: Rubin, Hay & Gould, Rodney E. Gould; Walsworth, Franklin, Bevins & McCall, Laurie E. Sherwood and Alex F. Pevzner for Defendant and Appellant.
Law Offices of David J. Bennion, David J. Bennion; Law Office of Daniel U. Smith and Daniel U. Smith for Plaintiffs and Respondents.
JUDGES: Opinion by Siggins, J., with McGuiness, P. J., and Pollak, J., concurring.
OPINION BY: Siggins [*819]
OPINION
(GeoEx), appeals from an order denying its motion to compel arbitration of a wrongful death action brought by the survivors of one of its clients who died on a Mount Kilimanjaro hiking expedition. GeoEx contends the trial court erred when it ruled that the agreement to arbitrate contained in GeoEx’s release form was unconscionable. Alternatively, GeoEx contends that if the court correctly concluded the arbitration clause was unconscionable, the court abused its discretion in striking the clause in its entirety rather than severing the objectionable provisions and enforcing the remainder. We find neither point is persuasive, and therefore affirm the order.
BACKGROUND
Jason Lhotka was 37 years old when [***2] he died of an altitude-related illness while on a GeoEx expedition up Mount Kilimanjaro with his mother, plaintiff Sandra Menefee. 1 GeoEx’s limitation of liability and release form, which both Lhotka and Menefee signed as a requirement of participating in the expedition, provided that each of them released GeoEx from all liability in connection with the trek and waived any claims for liability “to the maximum extent permitted by law.” The release also required that the parties would submit any disputes between themselves first to mediation and then to binding arbitration. It reads: “I understand that all Trip Applications are subject to acceptance by GeoEx in San Francisco, California, USA. I agree that in the unlikely event a dispute of any kind arises between me and GeoEx, the following conditions will apply: (a) the dispute will be submitted to a neutral third-party mediator in San Francisco, California, with both parties splitting equally the cost of such mediator. If the dispute cannot be resolved through mediation, then (b) the dispute will be submitted for binding arbitration to the American Arbitration Association in San Francisco, California; (c) the dispute will be governed [***3] by California law; and (d) the maximum amount of recovery to which I will be entitled under any and all circumstances will be the sum of the land and air cost of my trip with GeoEx. I agree that this is a fair and reasonable limitation on the damages, of any sort whatsoever, that I may suffer. [¶] I agree to fully indemnify GeoEx for all of its costs (including attorneys’ fees) if I commence an action or claim against GeoEx based upon claims I have previously released or waived by signing this release.” Menefee paid $ 16,831 for herself and Lhotka to go on the trip.
– – – – – – – – – – – – – – Footnotes – – – – – – – – – – – – – – –
1 The other plaintiffs and respondents are Elena Lhotka, individually and as executor of the estate, and Nicholas Lhotka by his guardian ad litem (also Elena Lhotka).
– – – – – – – – – – – – End Footnotes- – – – – – – – – – – – – –
A letter from GeoEx president James Sano that accompanied the limitation of liability and release explained that the form was mandatory and that, on [*820] this point, “our lawyers, insurance carriers and medical consultants give us no discretion. A signed, unmodified release form is required before any traveler may join one of our trips. [¶] Ultimately, we believe that you should choose your travel company based on its track record, not what you are asked to sign. [***4] … My review of other travel companies’ release forms suggests that our forms are not a whole lot different from theirs.”
After her son’s death, Menefee sued GeoEx for wrongful death and alleged various [**848] theories of liability including fraud, gross negligence and recklessness, and intentional infliction of emotional distress. GeoEx moved to compel arbitration.
The trial court found the arbitration provision was unconscionable under Armendariz v. Foundation Health Psychcare Services, Inc. (2000) 24 Cal.4th 83 [99 Cal. Rptr. 2d 745, 6 P.3d 669] (Armendariz), and on that basis denied the motion. It ruled: “The agreement at issue is both procedurally and substantively unconscionable. … The Sano letter establishes that the agreement was presented as a Take It Or Leave It proposition and was also represented to be consistent with industry practice. As a consequence[,] if the plaintiff and decedent wished to go on this trip, they could do so only on these terms. Unconscionability also permeates the substantive terms of the agreement to arbitrate. The problematic terms are the limitation on damages, the indemnity of GeoEx, the requirement that GeoEx costs and attorneys’ fees be paid if suit is filed related to certain claims, [***5] splitting the costs of mediation, the absence of an agreement on the cost of arbitration and the lack of mutuality as to each of these terms. As a consequence, this is not a case where the court may strike a single clause and compel arbitration.”
This appeal timely followed.
DISCUSSION
The questions posed here are (1) whether the agreement to arbitrate is unconscionable and, therefore, unenforceable; and (2) if so, whether the court properly declined to enforce the entire arbitration clause rather than sever unconscionable provisions. We answer both questions in the affirmative.
I. Standard of Review
HN1
On appeal from the denial of a motion to compel arbitration, “[u]nconscionability findings are reviewed de novo if they are based on declarations that raise ‘no meaningful factual disputes.’ [Citation.] However, where an unconscionability determination ‘is based upon the trial court’s resolution of conflicts in the evidence, or on the factual inferences which may be drawn [*821] therefrom, we consider the evidence in the light most favorable to the court’s determination and review those aspects of the determination for substantial evidence.’ [Citation.] The ruling on severance is reviewed for abuse [***6] of discretion.” (Murphy v. Check ’N Go of California, Inc. (2007) 156 Cal.App.4th 138, 144 [67 Cal. Rptr. 3d 120]; see Armendariz, supra, 24 Cal.4th at p. 122.) In keeping with California’s strong public policy in favor of arbitration, any doubts regarding the validity of an arbitration agreement are resolved in favor of arbitration. (Coast Plaza Doctors Hospital v. Blue Cross of California (2000) 83 Cal.App.4th 677, 686 [99 Cal. Rptr. 2d 809]; see Armendariz, supra, at p. 97.)
II. Unconscionability
CA(1)
(1) We turn first to GeoEx’s contention that the court erred when it found the arbitration agreement unconscionable. Although the issue arises here in a relatively novel setting, the basic legal framework is well established. HN2
“ ‘[U]nconscionability has generally been recognized to include an absence of meaningful choice on the part of one of the parties together with contract terms which are unreasonably favorable to the other party.’ [Citation.] Phrased another way, unconscionability has both a ‘procedural’ and a ‘substantive’ element.” (A & M Produce Co. v. FMC Corp. [**849]
(1982) 135 Cal.App.3d 473, 486 [186 Cal. Rptr. 114].) “ ‘The procedural element requires oppression or surprise. [Citation.] Oppression occurs where a contract involves lack of negotiation and meaningful [***7] choice, surprise where the allegedly unconscionable provision is hidden within a prolix printed form. [Citation.] The substantive element concerns whether a contractual provision reallocates risks in an objectively unreasonable or unexpected manner.’ [Citation.] Under this approach, both the procedural and substantive elements must be met before a contract or term will be deemed unconscionable. Both, however, need not be present to the same degree. A sliding scale is applied so that ‘the more substantively oppressive the contract term, the less evidence of procedural unconscionability is required to come to the conclusion that the term is unenforceable, and vice versa.’ ? (Morris v. Redwood Empire Bancorp (2005) 128 Cal.App.4th 1305, 1317 [27 Cal. Rptr. 3d 797], quoting Armendariz, supra, 24 Cal.4th at p. 114; see A & M Produce Co., supra, at p. 486.) This notion of a “sliding scale,” as will be seen, figures centrally in the analysis of the agreement at issue here.
A. Procedural Unconscionability
GeoEx argues the arbitration agreement involved neither the oppression nor surprise aspects of procedural unconscionability. GeoEx argues the agreement was not oppressive because plaintiffs made no showing of an “industry-wide [***8] requirement that travel clients must accept an agreement’s [*822] terms without modification” and “they fail[ed] even to attempt to negotiate” with GeoEx. We disagree. GeoEx’s argument cannot reasonably be squared with its own statements advising participants that they must sign an unmodified release form to participate in the expedition; that GeoEx’s “lawyers, insurance carriers and medical consultants give [it] no discretion” on that point; and that other travel companies were no different. 2 In other words, GeoEx led plaintiffs to understand not only that its terms and conditions were nonnegotiable, but that plaintiffs would encounter the same requirements with any other travel company. This is a sufficient basis for us to conclude plaintiffs lacked bargaining power.
– – – – – – – – – – – – – – Footnotes – – – – – – – – – – – – – – –
2 This is the clear import of Sano’s letter and, in any event, it is also the trial court’s interpretation, which we accept because it is supported by substantial evidence. (Murphy v. Check ’N Go of California, Inc., supra, 156 Cal.App.4th at p. 144.)
– – – – – – – – – – – – End Footnotes- – – – – – – – – – – – – –
GeoEx also contends its terms were not oppressive, apparently as a matter of law, because Menefee and Lhotka could have simply decided not to trek up Mount Kilimanjaro. [***9] It argues that contracts for recreational activities can never be unconscionably oppressive because, unlike agreements for necessities such as medical care or employment, a consumer of recreational activities always has the option of foregoing the activity. The argument has some initial resonance, but on closer inspection we reject it as unsound.
HN3
CA(2)
(2) While the nonessential nature of recreational activities is a factor to be taken into account in assessing whether a contract is oppressive, it is not necessarily the dispositive factor. Szetela v. Discover Bank (2002) 97 Cal.App.4th 1094 [118 Cal. Rptr. 2d 862] is informative. The defendant, a credit card company, argued the plaintiff could not establish procedural unconscionability because there were “market alternatives” to its product—i.e., the plaintiff had the option of taking his business to a different bank. The court disagreed, and held the customer’s ability to [**850] walk away rather than sign the offending contract was not dispositive. “The availability of similar goods or services elsewhere may be relevant to whether the contract is one of adhesion, but even if the clause at issue here is not an adhesion contract, it can still be found unconscionable. Moreover, [***10] ‘in a given case, a contract might be adhesive even if the weaker party could reject the terms and go elsewhere. [Citation.]’ [Citation.] Therefore, whether Szetela could have found another credit card issuer who would not have required his acceptance of a similar clause is not the deciding factor.” (Id. at p. 1100, italics added; see also Harper v. Ultimo (2003) 113 Cal.App.4th 1402, 1408–1409 [7 Cal. Rptr. 3d 418].) The focus of procedural unconscionability in Szetela, rather, was on the manner in which the disputed clause was presented. Faced with the options of either closing his account or accepting the credit card company’s “take it or leave it” terms, Szetela established the necessary [*823] element of procedural unconscionability despite the fact that he could have simply taken his business elsewhere. (Szetela, supra, at p. 1100.)
The cases on which GeoEx relies do not hold otherwise. GeoEx relies on Morris v. Redwood Empire Bancorp, supra, 128 Cal.App.4th at page 1320, for its statement that the “ ‘procedural element of unconscionability may be defeated[] if the complaining party has a meaningful choice of reasonably available alternative sources of supply from which to obtain the desired goods and services [***11] free of the terms claimed to be unconscionable.’ ” “[M]ay be defeated,” true—but not “must,” in all cases and as a matter of law. Morris takes its premise from Dean Witter Reynolds, Inc. v. Superior Court (1989) 211 Cal.App.3d 758, 772 [259 Cal. Rptr. 789], in which Division Two of this court expressly declined to hold or suggest “that any showing of competition in the marketplace as to the desired goods and services defeats, as a matter of law, any claim of unconscionability.” Indeed, Morris itself recognizes that some contracts may be oppressive despite the availability of market alternatives, albeit in the context of employment or medical care—i.e., contracts for “ ‘life’s necessities.’ ” (Morris, supra, at p. 1320, quoting West v. Henderson (1991) 227 Cal.App.3d 1578, 1587 [278 Cal. Rptr. 570]; see Armendariz, supra, 24 Cal.4th at p. 115 [employment].)
Many of the other authorities cited by GeoEx are inapposite because they concern challenges to release of liability clauses under the rule that invalidates exculpatory provisions that affect the public interest. (See Tunkl v. Regents of University of California (1963) 60 Cal.2d 92, 96–97 & fn. 6 [32 Cal. Rptr. 33, 383 P.2d 441]; Civ. Code, § 1668.) In this specific context, our courts consistently hold that [***12] recreation does not implicate the public interest, and therefore approve exculpatory provisions required for participation in recreational activities. (See, e.g., Randas v. YMCA of Metropolitan Los Angeles (1993) 17 Cal.App.4th 158, 161–162 [21 Cal. Rptr. 2d 245] [swim class]; Saenz v. Whitewater Voyages, Inc. (1990) 226 Cal.App.3d 758, 764 [276 Cal. Rptr. 672] [river rafting]; Madison v. Superior Court (1988) 203 Cal.App.3d 589, 597?599 [250 Cal. Rptr. 299] [scuba diving]; Paralift, Inc. v. Superior Court (1993) 23 Cal.App.4th 748, 756 [29 Cal. Rptr. 2d 177] [skydiving]; Buchan v. United States Cycling Federation, Inc. (1991) 227 Cal.App.3d 134 [277 Cal. Rptr. 887] [cycle racing]; Coates v. Newhall Land & Farming, Inc. (1987) 191 Cal.App.3d 1, 8 [236 Cal. Rptr. 181] [riding dirtbike]; Kurashige v. Indian Dunes, Inc. (1988) 200 Cal.App.3d 606, 611–612 [246 Cal. Rptr. 310] [**851] [motorcycle dirtbike].) But these cases do not focus on unconscionability, and they do not hold that contracts for recreational activities are immune from analysis for procedural unconscionability.
CA(3)
(3) Here, certainly, plaintiffs could have chosen not to sign on with the expedition. HN4
That option, like any availability of market alternatives, is [*824] relevant to the existence, and degree, of oppression. (See Szetela v. Discover Bank, supra, 97 Cal.App.4th at p. 1100; Laster v. T-Mobile USA, Inc. (S.D.Cal. 2005) 407 F.Supp.2d 1181, 1188 [***13] & fn. 1; see also Allan v. Snow Summit, Inc. (1996) 51 Cal.App.4th 1358, 1376 [59 Cal. Rptr. 2d 813] [nonessential, recreational nature of skiing was one of several factors that indicated a release clause was not substantively unconscionable]; but see Belton v. Comcast Cable Holdings, LLC (2007) 151 Cal.App.4th 1224, 1246 [60 Cal. Rptr. 3d 631] [dictum that availability of other cable providers defeated claim of unconscionability].) But we must also consider the other circumstances surrounding the execution of the agreement. GeoEx presented its limitation of liability and release form as mandatory and unmodifiable, and essentially told plaintiffs that any other travel provider would impose the same terms. “Oppression arises from an inequality of bargaining power which results in no real negotiation and an absence of meaningful choice … .” (Crippen v. Central Valley RV Outlet (2004) 124 Cal.App.4th 1159, 1165 [22 Cal. Rptr. 3d 189] [finding no oppression where evidence showed no circumstances surrounding the execution of the agreement, so no showing of unequal bargaining power, lack of negotiation, or lack of meaningful choice].) Here, in contrast to Crippen, GeoEx presented its terms as both nonnegotiable and no different than what plaintiffs would [***14] find with any other provider. Under these circumstances, plaintiffs made a sufficient showing to establish at least a minimal level of oppression to justify a finding of procedural unconscionability. (See Morris v. Redwood Empire Bancorp, supra, 128 Cal.App.4th at p. 1319 [“our task is not only to determine whether procedural unconscionability exists, but more importantly, to what degree it may exist”].)
B. Substantive Unconscionability
With the “sliding scale” rule firmly in mind (Armendariz, supra, 24 Cal.4th at p. 114), we address whether the substantive unconscionability of the GeoEx contract warrants the trial court’s ruling. Harper v. Ultimo, supra, 113 Cal.App.4th 1402, is analogous. The Harpers hired a contractor to perform work on their property. The contractor allegedly broke a sewer pipe, causing concrete to infiltrate the plaintiffs’ soil, plumbing and sewer and wreak havoc on their backyard drainage system. Unfortunately for the Harpers, the arbitration provision in the construction contract limited the remedies against their contractor to a refund, completion of work, costs of repair or any out-of-pocket loss or property damage—and then capped any compensation at $ 2,500 [***15] unless the parties agreed otherwise in writing.
CA(4)
(4) In the words of Justice Sills, substantive unconscionability was “so present that it is almost impossible to keep from tripping” over it. (Harper v. Ultimo, supra, 113 Cal.App.4th at p. 1406.) HN5
“Substantive unconscionability focuses on the one-sidedness or overly harsh effect of the contract term or [*825] clause. [Citation.] In the present case, the operative effect of the arbitration is even more one-sided against the customer than the clauses in [**852] any number of cases where the courts have found substantive unconscionability. (E.g., Little v. Auto Stiegler, Inc. (2003) 29 Cal.4th 1064 [130 Cal. Rptr. 2d 892, 63 P.3d 979] [either party could appeal any award of more than $ 50,000 to second arbitrator]; Szetela v. Discover Bank[, supra,] 97 Cal.App.4th 1094 … [arbitration clause absolutely barred class actions]; Saika v. Gold (1996) 49 Cal.App.4th 1074 [56 Cal. Rptr. 2d 922] [arbitration award could be rejected if it exceeded $ 25,000].) As in Little, Szetela and Saika, the limitation of damages provision here is yet another version of a ‘heads I win, tails you lose’ arbitration clause that has met with uniform judicial opprobrium.” The arbitration provision in the Harpers’ contract did not allow even a theoretical [***16] possibility that they could be made whole, because there was no possibility of obtaining meaningful compensation unless the contractor agreed—which, not surprisingly, it did not. (Harper v. Ultimo, supra, at p. 1407.)
The arbitration provision in GeoEx’s release is similarly one-sided as that considered in Harper. It guaranteed that plaintiffs could not possibly obtain anything approaching full recompense for their harm by limiting any recovery they could obtain to the amount they paid GeoEx for their trip. In addition to a limit on their recovery, plaintiffs, residents of Colorado, were required to mediate and arbitrate in San Francisco—all but guaranteeing both that GeoEx would never be out more than the amount plaintiffs had paid for their trip, and that any recovery plaintiffs might obtain would be devoured by the expense they incur in pursing their remedy. 3 The release also required plaintiffs to indemnify GeoEx for its costs and attorney fees for defending any claims covered by the release of liability form. 4 Notably, there is no reciprocal limitation on damages or indemnification obligations imposed on GeoEx. Rather than providing a neutral forum for dispute resolution, GeoEx’s [***17] arbitration scheme provides a potent disincentive for an aggrieved client to pursue any claim, in any forum—and may well guarantee that GeoEx wins even if it loses. Absent reasonable justification for this arrangement—and none is apparent—we agree with the trial court that the arbitration clause is so one-sided as to be substantively unconscionable. (See Armendariz, supra, [*826]
24 Cal.4th at p. 121 [damages remedy unilaterally limited]; Pinedo v. Premium Tobacco Stores, Inc. (2000) 85 Cal.App.4th 774, 781 [102 Cal. Rptr. 2d 435] [damages remedy limited, plaintiff required to pay all costs, and required hearing location was in Oakland].)
– – – – – – – – – – – – – – Footnotes – – – – – – – – – – – – – – –
3 The requirement that the parties share the cost of mediation does not factor into our analysis that the agreement is substantively unconscionable. Whether such cost sharing is appropriate depends on a number of issues that we need not consider. (See D.C. v. Harvard-Westlake School (2009) 176 Cal.App.4th 836, 860–864 [98 Cal. Rptr. 3d 300].)4 GeoEx is wrong when it claims the trial court erred “in even considering clauses outside the arbitration provision,” such as the limitation of liability and indemnification provisions, “etc.” It is unclear which “etc.” provisions GeoEx contends are “outside” the [***18] arbitration clause, but the limitation of liability clause GeoEx specifically identifies appears as subdivision (d) of the paragraph that requires arbitration, while the indemnification provision that immediately follows it is substantively relevant to whether or not the proposed arbitration system would provide an unacceptably one-sided forum for dispute resolution.
– – – – – – – – – – – – End Footnotes- – – – – – – – – – – – – –
III. Severability
GeoEx argues that, even if the limitation of liability provision was unconscionable, the court abused its discretion [**853] when it refused to strike it and enforce the remainder of the arbitration clause. We disagree.
CA(5)
(5) Civil Code section 1670.5, subdivision (a) gives the trial court discretion to either refuse to enforce a contract it finds to be unconscionable, or to strike the unconscionable provision and enforce the remainder of the contract. It provides: HN6
“If [***19] the court as a matter of law finds the contract or any clause of the contract to have been unconscionable at the time it was made the court may refuse to enforce the contract, or it may enforce the remainder of the contract without the unconscionable clause, or it may so limit the application of any unconscionable clause as to avoid any unconscionable result.” HN7
The trial court has discretion under this statute to refuse to enforce an entire agreement if the agreement is “permeated” by unconscionability. (Armendariz, supra, 24 Cal.4th at p. 122; Murphy v. Check ’N Go of California, Inc., supra, 156 Cal.App.4th at p. 149.) An arbitration agreement can be considered permeated by unconscionability if it “contains more than one unlawful provision … . Such multiple defects indicate a systematic effort to impose arbitration … not simply as an alternative to litigation, but as an inferior forum that works to the [stronger party’s] advantage.” (Armendariz, supra, at p. 124; see Murphy, supra, at p. 148.) “The overarching inquiry is whether ‘ “the interests of justice … would be furthered” ’ by severance.” (Armendariz, supra, at p. 124.)
CA(6)
(6) Here, the trial court identified multiple elements [***20] of the agreement that indicate GeoEx designed its arbitration clause “not simply as an alternative to litigation, but as an inferior forum” that would give it an advantage. In addition to limiting plaintiffs’ recovery, the agreement required them to indemnify GeoEx for its legal costs and fees if they pursued any claims covered by the release agreement. These one-sided burdens were compounded by the requirements that plaintiffs pay half of any mediation fees and mediate and arbitrate in San Francisco, GeoEx’s choice of venue, far from plaintiffs. It was within the court’s discretion to conclude this agreement was so permeated by unconscionability that the interests of justice would not be furthered by severing the damages limitation clause and enforcing the remainder. (Armendariz, supra, 24 Cal.4th at p. 124.)
[*827]
DISPOSITION
The order denying GeoEx’s motion to compel arbitration is affirmed.
McGuiness, P. J., and Pollak, J., concurred.
CIVIL CODE
Division 3. Obligations
Part 2. Contracts
Title 4. Unlawful Contracts
Cal Civ Code § 1670.5 (2010)
§ 1670.5. Unconscionable contract
(a) If the court as a matter of law finds the contract or any clause of the contract to have been unconscionable at the time it was made the court may refuse to enforce the contract, or it may enforce the remainder of the contract without the unconscionable clause, or it may so limit the application of any unconscionable clause as to avoid any unconscionable result.
(b) When it is claimed or appears to the court that the contract or any clause thereof may be unconscionable the parties shall be afforded a reasonable opportunity to present evidence as to its commercial setting, purpose, and effect to aid the court in making the determination.

Geographic Expeditions, Inc., v. The Estate Of Jason Lhotka, 599 F.3d 1102; 2010 U.S. App. LEXIS 6606
Posted: December 13, 2010 Filed under: California, Mountaineering, Release (pre-injury contract not to sue) | Tags: fatality, Kilimanjaro, Mount Kilimanjaro, Mountain Climbing, Mountaineering, Mt Kilimanjaro 2 CommentsTo Read an Analysis of this decision see
Complicated serious of cases created to defend against a mountaineering death.
Geographic Expeditions, Inc., v. The Estate Of Jason Lhotka, 599 F.3d 1102; 2010 U.S. App. LEXIS 6606
GEOGRAPHIC EXPEDITIONS, INC., Petitioner-Appellant, v. THE ESTATE OF JASON LHOTKA BY ELENA LHOTKA, executrix; SANDRA MENEFEE, Respondents-Appellees.
No. 09-15069
UNITED STATES COURT OF APPEALS FOR THE NINTH CIRCUIT
599 F.3d 1102; 2010 U.S. App. LEXIS 6606
March 11, 2010, Argued and Submitted, San Francisco, California
March 31, 2010, Filed
PRIOR HISTORY: [**1]
Appeal from the United States District Court for the Northern District of California. D.C. No. 3:08-cv-04624-SI. Susan Illston, District Judge, Presiding.
Geographic Expeditions, Inc. v. Estate of Lhotka, 2008 U.S. Dist. LEXIS 105691 (N.D. Cal., Dec. 29, 2008)
DISPOSITION: REVERSED and REMANDED.
CASE SUMMARY:
PROCEDURAL POSTURE: Respondents, a decedent’s estate and survivors, filed suit in a state court alleging, inter alia, that the decedent’s death from high altitude sickness was caused by the negligence of petitioner corporation’s employees. The corporation filed a petition to compel arbitration under 9 U.S.C.S. § 4. The U.S. District Court for the Northern District of California dismissed the petition for lack of subject matter jurisdiction. The corporation appealed.
OVERVIEW: The corporation contended that subject matter jurisdiction existed under 28 U.S.C.S. § 1332(a). The court found that the district court erred when it held that the corporation had to prove by a preponderance of the evidence that the amount in controversy exceeded $ 75,000 because the corporation did not remove the case from state to federal court and then file a motion to compel arbitration. Rather, the corporation commenced an action in federal court by filing a petition to compel arbitration. The legal certainty standard applied when a party filed a petition in federal court to compel arbitration, even when the opposing party was suing the federal petitioner in state court. The corporation’s allegation that it had a reasonable, good-faith belief that the damages exceeded $ 75,000 even though the state court complaint did not specify an amount was sufficient to confer subject matter jurisdiction on a federal court because it was not legally certain the amount in controversy was $ 75,000 or less. The district court erred when it dismissed for lack of subject matter jurisdiction the corporation’s petition to compel arbitration.
OUTCOME: The judgment was reversed and remanded for further proceedings.
CORE TERMS: amount in controversy, removal, subject matter jurisdiction, federal jurisdiction, preponderance, compel arbitration, arbitration, petition to compel arbitration, arbitration agreement, expedition, trip, jurisdictional amount, unenforceable, citizens of different states, evidence standard, burden to prove, altitude sickness, good faith, proponent, exceeded, specify, federal forum, state trial, exclusive of interest, burden of proof, parties agree, collateral estoppel, diversity jurisdiction, valid defense, unconscionable
COUNSEL: Rodney E. Gould, Rubin Hay & Gould P.C. for Geographic Expeditions, Inc., petitioner-appellant.
Daniel U. Smith, Law Office of Daniel U. Smith, David J. Bennion, Law Offices of David J. Bennion, for the Estate of Lhotka and Sandra Menefee, respondents-appellees.
JUDGES: Before: Betty B. Fletcher, Richard R. Clifton and Carlos T. Bea, Circuit Judges. Opinion by Judge Bea.
OPINION BY: Carlos T. Bea
OPINION
[*1104] BEA, Circuit Judge:
Geographic Expeditions, Inc. (“GeoEx”), appeals the district court’s dismissal of GeoEx’s petition to compel arbitration for lack of subject matter jurisdiction. Fed. R. Civ. P. 12(b)(1). GeoEx contends subject matter jurisdiction exists under [HN1] 28 U.S.C. § 1332(a), which provides federal jurisdiction over disputes between citizens of different states in which the amount in controversy exceeds $ 75,000 exclusive of interest and costs. The district court held that GeoEx had to establish by a preponderance of the evidence that the amount in controversy exceeded $ 75,000, and that, because a clause in the arbitration agreement [**2] limited damages to $ 16,831, GeoEx could not meet its burden. We conclude the district court erred both when it applied a preponderance of the evidence standard and when it held that the liability cap precludes federal jurisdiction. We therefore reverse and remand for further proceedings.
I. Factual and Procedural Background 1
1 We take these facts from the First Amended Complaint, on file in the district court, and declarations filed in support of and in opposition to the motion to dismiss. All are part of our record. See Trentacosta v. Frontier Pac. Aircraft Indus., Inc., 813 F.2d 1553, 1558-59 (9th Cir. 1987) (quoting 5C C. Wright & A. Miller, Federal Practice and Procedure, § 1363, at 653-54 (1969)).
The underlying dispute in this case arose out of a series of events on Mount Kilimanjaro in October 2007. GeoEx, a California corporation with its principal place of business in San Francisco, leads guided expeditions for profit to various [*1105] destinations throughout the world. Jason Lhotka, who was 37 years old, and his mother, Sandra Menefee, both citizens of Colorado, purchased tickets for a GeoEx expedition to Mount Kilimanjaro. As part of their registration for the trip, Lhotka and Menifee [**3] each signed a GeoEx trip participant contract, which included a provision requiring them to submit any dispute they might have with GeoEx to binding arbitration. The agreement further provided that the amount of recovery would be capped at “the sum of the land and air cost of my trip with GeoEx,” which the parties agree is $ 16,831. 2
2 The full text of the clause is:
I agree that in the unlikely event a dispute of any kind arises between me and GeoEx, the following conditions apply: (a) the dispute will be submitted to a neutral third-party mediator in San Francisco, California, with both parties splitting equally the costs of such mediator. If the dispute cannot be resolved through mediation, then (b) the dispute will be submitted for binding arbitration to the American Arbitration Association in San Francisco, California; (c) the dispute will be governed by California law; and (d) the maximum amount of recovery to which I will be entitled under any and all circumstances will be the sum of the land and air cost of my trip with GeoEx. I agree that this is a fair and reasonable limitation on the damages, of any sort whatsoever, that I may suffer.
The expedition began in Africa on September [**4] 29, 2007, and was to last until October 8, 2007. On October 1, Jason Lhotka began to suffer difficulty sleeping and experienced sudden onset of severe fatigue–early symptoms of high altitude sickness. On October 2, Jason Lhotka told the head expedition guide he needed to go back down the mountain because of his fatigue. He began his descent, accompanied by a GeoEx assistant guide. Although supplemental oxygen was available, it was not administered to Lhotka, nor was a rapid descent ordered, although such a route was also available. Both of these procedures are proper protocol for a person with high altitude sickness. On October 4, while descending the mountain, Lhotka died.
In July 2008, Lhotka’s estate and his survivors filed suit in San Francisco Superior Court alleging, inter alia, that Lhotka’s death from high altitude sickness was caused by the negligence of GeoEx employees in failing to recognize and treat Lhotka’s symptoms. In accord with California Code of Civil Procedure § 425.10(b), the state court complaint did not specify the amount of damages sought. In September 2008, GeoEx filed with the state court a motion to compel arbitration pursuant to the parties’ arbitration [**5] agreement. In December 2008, the state trial court denied GeoEx’s motion to compel arbitration; it held the arbitration agreement unconscionable and thus unenforceable. GeoEx appealed, and, on January 29, 2010, the California Court of Appeal affirmed. GeoEx then filed a petition for review with the California Supreme Court, which is currently pending. 3 In October [*1106] 2008–after filing in state court its motion to compel arbitration, but before the state trial court had ruled on the motion–GeoEx filed in federal district court the current petition to compel arbitration. The district court held that GeoEx had the burden to prove by a preponderance of the evidence that the amount in controversy exceeded $ 75,000 and that, because of the contractual damages limitation, recovery was limited to $ 16,831. Because GeoEx could not carry its assigned burden of proof, the district court dismissed GeoEx’s petition under Rule 12(b)(1) for lack of subject matter jurisdiction. This appeal from the order of dismissal timely followed.
3 Although the California Court of Appeal held the arbitration agreement to be unenforceable, that does not yet prevent the federal suit from proceeding. It is true that [**6] [HN2] “federal courts are compelled by the ‘full faith and credit’ statute” to give the same collateral estoppel and res judicata effects to state court judgments as would the courts of that state. Se. Res. Recovery Facility Auth. v. Montenay Int’l. Corp., 973 F.2d 711, 712 (9th Cir. 1992). However, the California Court of Appeal’s judgment that the arbitration agreement is unenforceable is not yet final. [HN3] Under California law, a judgment is not final for the purposes of collateral estoppel until it is free from the potential of a direct attack, i.e. until no further direct appeal can be taken. Abelson v. Nat’l Union Fire Ins. Co., 28 Cal. App. 4th 776, 35 Cal. Rptr. 2d 13, 19 (Ct. App. 1994). Here, the parties agree that the state court judgment is not yet final because GeoEx filed a petition for review in the California Supreme Court, which petition remains pending. Thus, this court can proceed on the merits.
II. Standard of Review
[HN4] We review de novo a district court’s dismissal for lack of subject matter jurisdiction. Crum v. Circus Circus Enters., 231 F.3d 1129, 1130 (9th Cir. 2000).
III. Analysis
A. Burden of Proof
The district court erred when it held GeoEx had to prove by a preponderance of the evidence that [**7] the amount in controversy exceeded $ 75,000. GeoEx filed a petition to compel arbitration under § 4 of the Federal Arbitration Act (“FAA”). Section 4 provides:
[HN5] A party aggrieved by the alleged failure, neglect, or refusal of another to arbitrate under a written agreement for arbitration may petition any United States district court which, save for such agreement, would have jurisdiction under title 28, in a civil action . . . of the subject matter of a suit arising out of the controversy between the parties, for an order directing that such arbitration proceed in the manner provided for in such agreement.
9 U.S.C. § 4. As the Supreme Court has explained, [HN6] § 4 “bestows no federal jurisdiction but rather requires for access to a federal forum an independent jurisdictional basis over the parties’ dispute.” Vaden v. Discover Bank, 129 S. Ct. 1262, 1271, 173 L. Ed. 2d 206 (2009). Thus, a federal court has jurisdiction over a petition to compel arbitration if the federal court would have jurisdiction over the underlying substantive dispute–here the negligence action filed by Lhotka’s estate and survivors. See id. at 1273.
[HN7] A federal court has jurisdiction over the underlying dispute if the suit is between citizens [**8] of different states, 4 and the amount in controversy exceeds $ 75,000 exclusive of interest and costs (i.e., diversity jurisdiction). 28 U.S.C. § 1332(a). Where the plaintiff originally files in federal court, “the amount in controversy is determined from the face of the pleadings.” Crum, 231 F.3d at 1131 (9th Cir. 2000). The amount in controversy alleged by the proponent of federal jurisdiction–typically the plaintiff in the substantive dispute–controls so long as the claim is made in good faith. Id. “To justify dismissal, it must appear to a legal certainty that the claim is really for less than the jurisdictional amount.” Id. (internal quotation omitted). This is called the “legal certainty” standard, which means a federal court has subject matter jurisdiction unless “upon the face of the complaint, it is obvious that the suit cannot involve the necessary amount.” St. Paul Mercury Indemnity Co. v. Red Cab Co., 303 U.S. 283, 292, 58 S. Ct. 586, 82 L. Ed. 845 (1938).
4 The parties concede this is a suit between citizens of different states.
On the other hand, [HN8] in a case that has been removed from state court to federal court under 28 U.S.C. § 1441 on the basis of diversity jurisdiction, the proponent of federal [**9] jurisdiction–typically [*1107] the defendant in the substantive dispute–has the burden to prove, by a preponderance of the evidence, that removal is proper. See Gaus v. Miles, Inc., 980 F.2d 564, 567 (9th Cir. 1992). The preponderance of the evidence standard applies because removal jurisdiction ousts state-court jurisdiction and “must be rejected if there is any doubt as to the right of removal in the first instance.” Id. at 566. This gives rise to a “strong presumption against removal jurisdiction [which] means that the defendant always has the burden of establishing that removal is proper.” Id. For these reasons, “[w]e strictly construe the removal statute against removal jurisdiction.” Id. 5
5 See also Shamrock Oil & Gas Corp. v. Sheets, 313 U.S. 100, 108-09, 61 S. Ct. 868, 85 L. Ed. 1214 (1941) (“The power reserved to the states under the Constitution to provide for the determination of controversies in their courts, may be restricted only by the action of Congress in conformity to the Judiciary Articles of the Constitution. Due regard for the rightful independence of state governments, which should actuate federal courts, requires that [federal courts] scrupulously confine their own jurisdiction to the precise limits [**10] which [§ 1441] has defined.”(internal quotation omitted)).
Here, the district court cited Sanchez v. Monumental Life Ins. Co., 102 F.3d 398, 404 (9th Cir. 1996)–a removal case–and held that, because Lhotka’s estate did not specify damages in its state court complaint, GeoEx had the burden to prove the amount in controversy was satisfied by a preponderance of the evidence. This was error, however, because GeoEx did not remove the case from state to federal court and then file a motion to compel arbitration. Rather, GeoEx commenced an action in federal court by filing a petition to compel arbitration. Because a parallel action to compel arbitration commenced in federal court does not oust state court jurisdiction, the presumption against removal jurisdiction and attendant preponderance of the evidence standard, found in removal cases, do not apply. 6 Thus, we hold that [HN9] the legal certainty standard applies when a party files a petition in federal court to compel arbitration, even when the opposing party is suing the federal petitioner in state court. Two other circuits have come to the same conclusion. E.g., Doctor’s Assocs., Inc. v. Hamilton, 150 F.3d 157 (2d Cir. 1998); Woodmen of the World Life Ins. Soc’y v. Manganaro, 342 F.3d 1213 (10th Cir. 2003).
6 Although [**11] the petitioner in a motion to compel arbitration is typically the defendant in the underlying substantive dispute, like the proponent of federal jurisdiction in a removal case, that does not mean the removal standard should apply in the non-removal context. When a case is removed to federal court, the federal court completely precludes the state court’s authority to adjudicate the controversy. A petition filed in federal court to compel arbitration is much less intrusive on state court jurisdiction. In fact, as this case demonstrates, it does not preclude the state action from proceeding in any way. Thus the rationale for the higher burden of proof is absent.
Under the legal certainty standard, the good faith allegations in GeoEx’s petition as to the amount in controversy suffice to establish the jurisdictional amount unless it appears legally certain that the amount in dispute is $ 75,000 or less. Here, GeoEx’s petition alleges that Lhotka’s damages in the state court action are reasonably in excess of $ 75,000. GeoEx bases this allegation on the fact that Lhotka’s state court complaint requests damages: (1) for the alleged wrongful death of Jason Lhotka, who was 37 years old at the [**12] time of the trip, was married, and had at least one dependant; (2) for loss of consortium for his wife and his son; (3) for fraud, misrepresentation, gross negligence, and intentional infliction of emotional distress; (4) for violations of California’s consumer fraud statutes; and (5) for funeral, medical, and burial expenses. GeoEx alleged [*1108] that, based on Lhotka’s requests in state court, it “has a reasonable, good-faith belief that the damages exceed $ 75,000” even though the state court complaint does not specify an amount. 7 This allegation is sufficient to confer subject matter jurisdiction on a federal court because it is not legally certain the amount in controversy is $ 75,000 or less.
7 As is perhaps quite predictable, Lhotka does not claim GeoEx’s allegation that the amount in controversy exceeds $ 75,000 is not made in good faith.
B. Potential Defenses
GeoEx’s potential defense to the state court action that the damages limitation restricts recovery to less than $ 75,000 (indeed, to $ 16,831) does not preclude federal jurisdiction. As the Supreme Court has explained, [HN10] “the fact that the complaint discloses the existence of a valid defense to the claim” does not eliminate federal [**13] jurisdiction, nor do events “occurring subsequent to the institution of suit which reduce the amount recoverable below the statutory limit.” St. Paul Mercury Indemnity Co., 303 U.S. at 289-90. This rule makes sense; just because a defendant might have a valid defense that will reduce recovery to below the jurisdictional amount does not mean the defendant will ultimately prevail on that defense. 8 Further, if a district court had to evaluate every possible defense that could reduce recovery below the jurisdictional amount the district court would essentially have to decide the merits of the case before it could determine if it had subject matter jurisdiction. This rule applies even though GeoEx is asserting the potential defense, and at the same time seeking a federal forum based on diversity jurisdiction.
8 Indeed, in the context of this case, the state court determined that the liability cap along with the rest of the arbitration agreement was unconscionable and therefore unenforceable.
Thus, the district court erred when it held the amount in controversy cannot exceed $ 16,831. The district court should not have relied on GeoEx’s potential contractual defense to determine the amount [**14] in controversy. Because it does not appear to a legal certainty that the underlying amount in controversy is below $ 75,000, the district court erred when it dismissed for lack of subject matter jurisdiction GeoEx’s petition to compel arbitration.
REVERSED and REMANDED
Rice, et als, vs. American Skiing Company, Et Als, 2000 Me. Super. LEXIS 90
Posted: November 25, 2010 Filed under: Legal Case, Maine, Release (pre-injury contract not to sue), Ski Area | Tags: Inc., MAINE, Outdoors, Perfect Turn, Recreation, Resort, Ski, ski lesson, Sunday River, Sunday River Ski Co., Thomas Rice Leave a commentThomas Rice, et als, Plaintiffs vs. American Skiing Company, Et Als, Defendants
Civil Action Docket No. CV-99-06
SUPERIOR COURT OF MAINE, OXFORD COUNTY
2000 Me. Super. LEXIS 90
May 8, 2000, Decided
May 9, 2000, Filed
DISPOSITION: [*1] Plaintiff Laurene’s Motion for Summary Judgment on Defendants’ Counterclaim GRANTED; Defendants’ Motion for Summary Judgment on Count I of Plaintiffs’ Complaint DENIED; and Defendants’ Motion for Summary Judgment on Count II of Plaintiffs’ Complaint GRANTED.
OPINION
DECISION AND ORDER
This matter is before the court on the motion of the plaintiff Laurene Rice for summary judgment, dated December 6, 1999, directed to the defendants’ counterclaim and on the defendants’ motion for summary judgment, dated January 6, 2000, directed to the plaintiffs’ complaint.
FACTUAL BACKGROUND
The plaintiffs Thomas and Laurene Rice are the parents of the plaintiff Nicholas Rice. The defendants Sunday River Skiway Corporation (SRS) and Perfect Turn, Inc. (Perfect Turn), are affiliates of each other and subsidiaries of the defendant American Skiing Company (American Skiing). 1 SRS owns and operates the Sunday River Ski Resort in Newry, Maine (Sunday River). SRS also operates a ski school there called “Perfect Kids Children’s Program” (ski school), but does not require individuals to enroll in the ski instruction program as a precondition to skiing at Sunday River. The defendant Timothy McGuire [*2] is employed by SRS as a ski instructor.
1 On April 26, 2000, the parties filed a stipulation of dismissal without prejudice as to American Skiing Company and Perfect Turn, Inc.
On December 13, 1997, the plaintiffs went to Sunday River to ski. Nicholas was almost nine years old at the time and Laurene enrolled him in the ski school. She selected the Level Three program for people who already had certain skiing skills. 2
2 In deposition testimony, Timothy McGuire described that skill level:
Q. Would you please tell us again what Level Three meant in terms of skill level?
A. That it meant that they were able to form a wedge, to be able to stop and start and to get up on their own if they fall and they can put their skis on by themselves and that they have experience riding the chairlift.
Defendants’ Statement of Material Facts, Ex. B at p. 22.
[*3] Prior to Nicholas’ enrollment in the class, Laurene signed a form entitled “Acknowledgement & Acceptance of Risks & Liability Release” (Ski Enrollment Form) on behalf of herself and her son. The document began with a “WARNING” about the hazards of “Alpine activities” 3 and the challenges of the ski school program, then included language purporting to be a release by Laurene and Nicholas 4 of SRS and
“its owners, affiliates, employees and agents from any and all liability for all personal injury [] arising from any alleged negligence in the operation and maintenance or design of the ski area and other conditions such as those listed in the WARNING above.”
See Affidavit of Joseph R. Saunders, Esq. The document concluded with Laurene’s agreement to indemnify the defendants “for all awards, legal expenses and settlements arising out of” her child’s participation in the ski school and his use of the Sunday River premises. Thomas did not sign the Ski Enrollment Form and there is no evidence that he was involved in the enrollment process. The parents went off to ski while Nicholas was in class.
3 The hazards included many of the dangers or conditions included in the definition of “inherent risks of skiing” in Maine’s Skiers’ and Tramway Passengers’ Responsibilities Act. 32 M.R.S.A. § 15217(1)(A) (Supp. 1999). See Affidavit of Joseph R. Saunders, Esq.
[*4]
4 The document included the following language:
“As a parent/guardian with legal responsibility for a minor participant, I am authorized to sign this agreement for that child. I consent and agree for the minor child to be bound by this agreement ….”
See Affidavit of Joseph R. Saunders, Esq.
The ski class began around 9:30 a.m. McGuire first taught the class “rule number one” which was “you don’t pass the coach.” Nicholas fell at one point during a training run in the morning session. McGuire and the rest of the class went further ahead, then stopped and formed a group. When the boy caught up to them, McGuire was finishing an instruction about a skiing maneuver for stopping called a “hockey stop”.
The class broke for lunch at 11:15 a.m. and resumed shortly after the noon hour on a trail called Mixing Bowl. Ski conditions were good and the trail was in good shape. McGuire took his charges on a “fun run” down the slope again instructing the class not to ski past him. Nicholas fell and the group stopped further on to wait for him. He got up and began skiing toward them. He [*5] started going faster and panicked. As he approached the group, he could not slow down. He tried to do a “hockey stop”, skied off the side of the trail, hit a tree and was injured.
DECISION
A summary judgment is appropriate when there is no genuine issue of material fact and the moving party is entitled to a judgment as a matter of law. Panasonic Communications & Sys. Co. v. State, 1997 ME 43, P10, 691 A.2d 190, 194 (citing Gonzales v. Comm’r, Dep’t of Pub. Safety, 665 A.2d 681, 682-83 (Me. 1995)). Even if the parties differ as to the legal conclusions to be drawn from the historical facts before the court, if there is no serious dispute as to what those facts are, consideration of a summary judgment is proper. North East Ins. Co. v. Soucy, 1997 ME 106, P8, 693 A.2d 1141.
At the heart of it, the plaintiffs allege that the defendants, acting through McGuire, were negligent in their supervision of Nicholas. Laurene’s separate claim for lost wages can only survive on the strength of this negligence claim. The defendants disclaim responsibility by virtue of the immunity provisions of Maine’s Skiers’ and Tramway Passengers’ Responsibilities [*6] Act, 32 M.R.S.A. § 15217 (Supp. 1999), and the provisions of the Ski Enrollment Form signed by Laurene.
Maine’s Skiers and Tramway Passengers’ Responsibilities Act
The threshold issue is whether the Act immunizes the defendants against liability for a claim of negligent supervision. The court concludes that it does not. The Act relieves ski area operator’s from responsibility for injuries that result from the “inherent risks of skiing–such as skiing into a tree. Id. However, the statute expressly provides that it “does not prevent the maintenance of an action against the ski area operator for [] the negligent operation [] of the ski area”. 32 M.R.S.A. § 15217(8)(A). 5 Nicholas’ claim of negligent supervision clearly falls within the Act’s “negligent operation” exclusion.
5 See McGuire v. Sunday River Skiway Corp., 1994 WL 505035, *5 (D. Me.), in which Judge Hornby wrote “McGuire’s argument for liability might have some appeal if her skiing instructor had encouraged her to do something inappropriate during her lesson. That might amount to negligent operation of the ski area.”
[*7] Nicholas’ Claim
The issue then becomes whether the boy’s claim against the defendants has been effectively released by his mother. This issue requires an examination of the meaning and validity of the release language in the Ski Enrollment Form.
Releases in general are not against public policy. See Emery Waterhouse Co. v. Lea, 467 A.2d 986, 993 (Me. 1983). However, for its terms to be valid, a release absolving a defendant of liability for its own negligence “must spell out ‘with greatest particularity’ the intention of the parties contractually to extinguish negligence liability.” The courts have “traditionally disfavored contractual exclusions of negligence liability and have exercised a heightened degree of judicial scrutiny when interpreting contractual language which allegedly exempts a party from liability for his own negligence.” See Hardy v. St. Clair, 1999 ME 142, P3, 739 A.2d 368, 369, citing Doyle v. Bowdoin College, 403 A.2d 1206, 1207 (Me. 1979). The release must be construed strictly. See Doyle, 403 A.2d at 1207-08 (citing Prosser, Torts, § 68 (4th ed. 1971)) (it must appear that [*8] the terms of the release were “brought home to the plaintiff”).
The release that Laurene signed on behalf of herself and Nicholas prevents claims
“against [SRS], its owners, affiliates, employees and agents from any and all liability for all personal injury, including death or property damage arising from any alleged negligence in the operation and maintenance or design of the ski area and other conditions such as those listed in the WARNING above.”
See Affidavit of Joseph R. Saunders, Esq. (emphasis added). This language is unambiguous and, if valid, clearly releases the defendants from liability for damages and losses sustained as a result of negligence in the operation of the ski area, which would include the claim of negligent supervision in this case. The interpretation of an unambiguous contract is a question of law, see Fleet Bank of Maine v. Harriman, 1998 ME 275, P4, 721 A.2d 658.
More to the point of this case, the issue is whether an unambiguous release of negligence claims given by a parent on behalf of her child is valid. The defendants cite Zivich v. Mentor Soccer Club, Inc., 82 Ohio St. 3d 367, 696 N.E.2d 201 (Ohio 1998), as [*9] support for their assertion that a parent can give a binding release of such claims on behalf of the child. However, Zivich stands for the more limited proposition “that parents have the authority to bind their minor children to exculpatory agreements in favor of volunteers and sponsors of nonprofit sports activities where the cause of action sounds in negligence.” 82 Ohio St. 3d at 374 (emphasis added). The decision was grounded on two public policy considerations: first, nonprofit sports organizations would be unable to get volunteers without such releases and would go out of existence; and, second, parental authority to make and give such releases is of constitutional importance. However, the first consideration is inapplicable to the facts of this case–none of the defendants is a nonprofit organization and McGuire was not a volunteer–and the court is not persuaded by the second.
The defendants’ do make a broader public policy argument addressed to the facts of this case. They assert that ski schools are offered by ski areas for the convenience and safety of their guests. If releases on behalf of minors are unenforceable, ski areas will be reluctant to offer [*10] training and instructions to children, whose safety will then be as risk. This is not an inconsequential point. However, it is a risk against which a for-profit business may insure itself. 6 This court cannot conclude that the public policy consideration espoused by the defendants is paramount to the right of the infant to his negligence claim.
6 The court is mindful that in Zivich the Ohio Supreme court determined that “insurance for the [nonprofit] organizations is not the answer, because individual volunteers may still find themselves potentially liable when an injury occurs.” 82 Ohio St. 3d at 371-72. However, the point in Zivich, which involves a volunteer, is distinguishable from this case, which involves a paid employee. While a volunteer may reasonably expect that he should suffer no penalty for the consequences of his gratuitous acts, a paid employee–such as Defendant McGuire–may not.
There are numerous cases holding contrary to the defendants’ position. See, e.g., Scott v. Pacific West Mtn. Resort, 119 Wn.2d 484, 834 P.2d 6 (Wash. 1992) [*11] (en banc); Whitcomb v. Dancer, 140 Vt. 580, 443 A.2d 458, 460 (Vt. 1982). Maine appears to side with these decisions. In the case of Doyle v. Bowdoin College, supra, the Law Court was unequivocal in its declaration, albeit dicta, 7 that “this Court has held that a parent, or guardian, cannot release the child’s or ward’s, cause of action.” Doyle v. Bowdoin College, 403 A.2d at 1208 n.3. This language is too unequivocal to ignore. In fact, other courts holding in line with Scott have cited Doyle as support for this proposition. See Scott, 834 P.2d at 12 n.19; see also International Union v. Johnson Controls, Inc., 499 U.S. 187, 214, 113 L. Ed. 2d 158, 111 S. Ct. 1196 (1991)(White, J., concurring) (“the general rule is that parents cannot waive causes of action on behalf of their children”); Meyer v. Naperville Manner, Inc., 262 Ill. App. 3d 141, 634 N.E.2d 411, 414, 199 Ill. Dec. 572 (Ill. App. 1994).
7 Although it is dicta, courts have cited Doyle for the proposition that a parent cannot release a child’s causes of action.
[*12] The court concludes that the claim for negligent supervision brought on behalf of Nicholas is not barred by the release provisions of the Ski Enrollment Form signed by his mother.
Laurene’s Claim
Laurene’s claim for lost wages arises out of and is dependant upon her son’s claim for negligent supervision. As noted, the release language is unambiguous and clearly releases the defendants from liability for damages and losses “arising from any alleged negligence in the operation [] of the ski area”, which includes the claim of negligent supervision in this case. Although this court concludes that Nicholas’ cause of action survives the release provisions of the Ski Enrollment Form, his mother’s claim does not. See Scott v. Pacific West Mtn. Resort, 834 P.2d at 12 (holding that although child’s cause of action is not barred by parents’ signing of release, parents’ claims based on child’s injury are barred by unambiguous and conspicuous release); see also Childress v. Madison Cty., 777 S.W.2d 1, 7-8 (Tenn. Ct. App. 1989) (although child and child’s father are not bound by release signed by mother, she is barred from bringing claims based [*13] on child’s injuries).
Indemnification Clause
Finally, there remains the issue of whether Laurene is obligated to indemnify the defendants against Nicholas’ cause of action. In Maine, the Law Court views clauses “indemnifying a party against its own negligence with disfavor, and directs courts to construe them strictly against such a result.” See International Paper Co. v. A&A Brochu, 899 F. Supp. 715, 719 (D. Me. 1995), citing Emery Waterhouse, 467 A.2d at 993. However, the court may uphold an indemnification agreement that expressly indemnifies the indemnitee against its own negligence in a manner that clearly reflects the mutual intent of the parties. “[A] clear reflection of mutual intent requires language from the face of which the parties unambiguously agree to indemnification for indemnitee negligence.” See id. In International Paper, the court upheld the validity of such an indemnification clause that provided, as follows:
“SELLER does hereby agree to indemnify and hold harmless PURCHASER from and against any and all claims, damages, debts, demands, suits, actions, attorney fees, court costs and expenses arising [*14] out of, attributable to, or resulting from SELLER’S or any supplier’s said operations, whether the same are caused or alleged to have been caused in whole or in part by the negligence of PURCHASER, Its (sic) agents or employees.”
Id. (emphasis added). However, unlike International Paper, it is not clear that the indemnification provision in this case applies to the defendants’ own negligence. 8 The Ski Enrollment Form provides as follows:
“I hereby indemnify the ski areas named above, its owners, affiliates, employees and agents for all awards, legal expenses and settlements arising out of the child’s participation in this clinic and the use of the ski area premises.”
Employing a strict construction analysis, the court concludes that this language is ambiguous and does not reflect an express mutually intended agreement that Laurene will indemnify the defendants against their own negligence. In fact, it seems more suited to an interpretation that the indemnification is for losses or damages caused by Nicholas while participating in the ski school.
8 See McGraw v. S.D. Warren Co., 656 A.2d 1222, 1224 (Me. 1995), where the court held that Cianbro did not specifically agree to indemnify Warren for damages caused by Warren’s own negligence where the clause provided:
The contractor [Cianbro] is responsible for and shall continuously maintain protection of all the work and property in the vicinity of the work from damage or loss from any cause arising in connection with the contract and any work performed thereunder. [Cianbro] shall indemnify and hold owner [Warren] harmless for any claims, suits, losses or expenses including attorneys’ fees suffered by [Warren] arising out of injury to any person including [Warren’s] or [Cianbro’s] employees or damage to any property, including [Warren’s] property if the injury or damage is caused in whole or in part by [Cianbro] or any of [Cianbro’s] subcontractors, material men or anyone directly or indirectly employed or otherwise controlled by any of them while engaged in the performance of any work hereunder.
[*15] Based on the conclusion that the Ski Enrollment Form does not include an indemnification by Laurene against the defendants’ own negligence, the court does not need to reach the plaintiffs’ further claim that the indemnification clause is unconscionable as a contract of adhesion. See Dairy Farm Leasing Co., Inc. v. Hartley, 395 A.2d 1135, 1139-40 (Me. 1978) (“where a standard-form, printed contract is submitted to the other on a ‘take it or leave it’ basis, upon equitable principles the provisions of the contract are generally construed to meet the reasonable expectations of the party in the inferior bargaining position; when a contract of adhesion is exacted by the overreaching of a party, the defense of unconscionability may be asserted”).
Pursuant to Rule 79(a) M.R.Civ.P., the Clerk is directed to enter this Decision and Order on the Civil Docket by a notation incorporating it by reference, and the entry shall be:
Plaintiff Laurene’s Motion for Summary Judgment on Defendants’ Counterclaim is GRANTED;
Defendants’ Motion for Summary Judgment on Count I of Plaintiffs’ Complaint is DENIED; and
Defendants’ Motion for Summary Judgment on Count II of [*16] Plaintiffs’ Complaint is GRANTED.
Dated: May 8, 2000
/s/ signed
Justice, Superior Court





















