Kurashige v. Indian Dunes, Inc.
246 Cal. Rptr. 310, 200 Cal. App. 3d 606 (1988)
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Rule of Law:
A liability release agreement for a non-essential, dangerous recreational activity is not unconscionable, and is therefore enforceable, when its terms are clear and conspicuous, and the party signing it has a meaningful choice to not engage in the activity.
Facts:
- Indian Dunes Park was a facility owned by Indian Dunes, Inc., and Newhall Land & Farming Company, which was open to the general public for motorcycle dirtbike riding.
- Before being allowed to use the park, all riders, including Michael Kurashige, were required to sign a document titled 'Indian Dunes Park General Release'.
- The release agreement contained prominent warnings in bold, capitalized, and red-inked text, such as 'Since all motorbike riding is dangerous we require all riders and visitors to assume all risk by signing this general release' and 'motorcycling is dangerous'.
- The agreement's text explicitly stated that the signer releases the park owners from all liability for injury, 'whether caused by the negligence of Releasees or otherwise'.
- The agreement also contained language confirming the signer voluntarily assumed all risks and acknowledged the inherent hazards of the activity.
- Each of the 84 signature lines on the form had the words 'this is a release' printed on it in capital letters.
- On December 21, 1982, after signing the agreement, Michael Kurashige was injured while riding his dirtbike at the park.
Procedural Posture:
- Michael Kurashige filed a lawsuit against Indian Dunes, Inc., and Newhall Land & Farming Company in the trial court.
- Defendants moved for summary judgment, arguing the 'General Release' agreement barred the lawsuit.
- Kurashige opposed the motion, contending the release agreement was unconscionable.
- The trial court granted summary judgment in favor of the defendants.
- Kurashige, as appellant, appealed the trial court's judgment to the Court of Appeals of California.
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Issue:
Is a standardized liability release agreement for a dangerous recreational activity, such as dirtbike riding, unconscionable and therefore unenforceable when it clearly and legibly shifts all risk to the participant?
Opinions:
Majority - Spencer, P.J.
No. A clearly-worded liability release for a dangerous recreational activity is not unconscionable where the participant is not compelled to sign it. Unconscionability requires both a procedural element (oppression and surprise) and a substantive element (overly harsh terms). Here, there was no procedural unconscionability. While the contract was one of adhesion with unequal bargaining power, there was no 'oppression' because Kurashige had a meaningful choice; he was not required to ride at this specific park and could have chosen to go elsewhere or not participate at all. There was no 'surprise' because the release terms were clear, legible, and prominently highlighted with warnings. Substantively, while the agreement was one-sided, the reallocation of risk to the participant was not objectively unreasonable. The danger of dirtbike riding is inherent, and the risk of injury is significantly dependent on the user's individual skill and experience, factors over which the park operators have no control. Therefore, the release agreement is not unconscionable and is enforceable.
Analysis:
This case clarifies the application of the unconscionability doctrine to liability waivers for recreational activities. It establishes that for non-essential services, the 'oppression' element of procedural unconscionability is not satisfied if the consumer has the meaningful choice to simply walk away. The decision also affirms that a one-sided allocation of risk can be substantively reasonable if the risk is inherent to the activity and largely within the participant's own control. This precedent provides strong legal protection for operators of dangerous recreational businesses who utilize clear, conspicuous, and comprehensive release forms.
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