Cengage Advantage Books: Fundamentals of Business Law Today 10th Edition by Roger LeRoy Miller

Exercise 22

FACTS Colleen Holmes signed an entry form for the Susan G. Komen Race for the Cure to be held in June 2009 in St. Louis, Missouri. The form included a "RACE WAIVER AND RELEASE" clause under which Holmes agreed to release "any Event sponsors and their agents and employees … for any injury or damages" that Holmes might suffer in connection with her participation in the race. Additionally, the release applied to any "negligence of the [sponsors]." Multimedia KSDK, Inc., was one of the race sponsors and also broadcasted the race. During the event, Holmes was injured when she tripped and fell over an audiovisual box. Multimedia employees had placed the box on the ground without barricades or warnings of its presence. Holmes filed a suit in a Missouri state court against Multimedia, alleging negligence. The court entered a judgment in Multimedia's favor, and Holmes appealed.
ISSUE Did the exculpatory clause that Holmes signed clearly release Multimedia from liability for negligence?
DECISION Yes. The state intermediate appellate court affirmed the lower court's judgment in favor of Multimedia.
REASON The appellate court held that the language used in the exculpatory clause clearly released all sponsors and their agents and employees without exclusion from liability for future negligence. The reviewing court was not persuaded by Holmes's argument that the language in the release was ambiguous "because it did not specifically name the individuals and entities released."
Further, "a release that releases claims against 'any and all persons' is unambiguous and enforceable … and it is not necessary that the release identify those persons by name or otherwise." The reviewing court noted that while public policy disfavors releases of future negligence, it does not prohibit them. All that is necessary is "there must be no doubt that a reasonable person agreeing to an exculpatory clause actually understands what future claims he or she is waiving." Such was the situation here.
For critical analysis-Social Consideration At the time Holmes signed the release, Multimedia had not yet become a sponsor of the event. Should this fact have rendered the clause unenforceable? Explain.