Minnesota Supreme Court Upholds Exculpatory Release Language For Party’s Own Negligence

The Minnesota Supreme Court recently addressed whether an exculpatory clause in a waiver agreement can release the party from liability for its own negligence. It held yes, if the language of the provision clearly and unequivocally states such an intent.

In Lund v. Calhoun Orange Club, a member of a fitness center suffered cardiac arrest and collapsed while participating in a workout class and suffered a significant brain injury. The member’s conservator brought suit alleging the fitness center’s negligence, including delayed medical attention, was the cause of the injuries. The member signed a one-page “Client Intake Form,” upon joining, which contained liability-shifting provisions benefitting

The Client Intake Form contained two relevant provisions: one broadly describing assumed risks inherent in physical activity, and another explicitly releasing Calhoun Orange from liability, “even if arising from the negligence” of the facility.

The Supreme Court applied a test of “strict construction”, and found the exculpatory clause was enforceable because it clearly and unequivocally stated the intent to release the fitness center from its own negligence. Although the first clause contained general language about assumed risks, and did not mention negligence, the Court read that provision together with the second, which extended that assumption to include risks caused by the defendant’s own negligence. As such, the exculpatory clause clearly released the fitness center for claims arising from its own negligence, even though the clause appeared alongside a general assumption-of-risk clause.

Businesses should ensure such waivers contain specific language as to the type of claims released, as a broadly worded release of “all claims” would not be enforced. Consumers, on the other hand, should understand the legal impact of signing these forms. If you have any questions regarding contract, release or waiver drafting or construction, feel free to contact us.