Equine Law Blog

Why Do Liability Releases Sometimes Fail?

"Releases are not worth the paper they're written on."  Is this really true?  Generally speaking, no.  What is true, however, is that releases of liability (also called "waivers")  are probably the most misunderstood contracts in the entire horse industry.

Reason For Failure #1:  An Applicable State Law Makes Them Invalid

The vast majority of states have enforced releases of liability.  Even in these states, courts frequently recognize that people cannot release away the right to sue another for certain types of more serious wrongdoing, such as "gross negligence" or intentional misconduct.

Reason for Failure #2: Defective Language

People who sign releases sometimes sue.  Lawsuits have asserted a variety of arguments.  Not surprisingly, when a release is subjected to a legal challenge it will receive intense scrutiny.  Here are two examples of these kinds of challenges:

1. In a lawsuit against an Ohio equestrian center, the document was termed a "release" but failed to contain language in which the signer appropriately released the center from liability.  Instead, the participant seemed only to have released the center from liability for the consequences of the signer's own negligence.  That document failed in a challenge.
2. In another case, the release contained a misstatement of fact (that the stable had no liability insurance, when it did).  The Wisconsin Court ruled that this misstatement prevented the stable from relying on the release.

Reason for Failure #3:  Improper Signing

Even the best-worded release could fail if there was some legally significant defect in the manner in which it was presented and signed.  Over the years, for example, releases have failed when those signing them were under the influence of alcohol or drugs.  Releases have also failed when signed only by someone under the legal age (in states that enforce releases, typically those at or over the age of 18 can legally sign them).  Other cases exist in which people claimed they were deceived or defrauded into signing the release, or that they did not understand what they signed.  Whether these claims succeed or fail depends on the law of the applicable state.

Conclusion

A release is a very important legal document.  Do not take chances with it.  Understand that forms can be, at best, a starting point.  Make sure that forms comply with legal requirements of your state.  Also, remember that having a release is never a substitute for having proper liability insurance.

If you have any questions about releases, please let me know.

Categories: Liability