LaFrenz v. Lake County Fair Board
172 Ind. App. 389, 360 N.E.2d 605 (1977)
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Rule of Law:
An exculpatory agreement that releases a party from liability for its own negligence is enforceable if it was entered into 'knowingly and willingly' and does not involve a transaction affecting the public interest or result from unequal bargaining power.
Facts:
- Linda LaFrenz, a 26-year-old high school graduate with some college education, had previously attended demolition derbies as a spectator and a ticket seller.
- Weeks before the event on August 19, 1972, Linda LaFrenz signed an entry blank to participate in the demolition derby.
- On the day of the event, LaFrenz executed a document titled 'WAIVER AND RELEASE FROM LIABILITY AND INDEMNITY AGREEMENT' to gain access to the restricted pit area.
- The agreement stated she released the organizers from all liability for injury or death, 'whether caused by the negligence of Releasees or otherwise.'
- The signature line on the form was superimposed over the words 'THIS IS A RELEASE' printed in bold, 3/16th-inch type.
- While LaFrenz was standing in the pit area to assist her husband, a car participating in the derby jumped a barrier and fatally struck her.
Procedural Posture:
- David LaFrenz, as Administrator of the Estate of Linda LaFrenz, filed a complaint for damages in the trial court against the Lake County Fair Board and Variety Attractions, Inc., among others.
- The defendants-appellees, Lake County Fair Board and Variety Attractions, Inc., filed motions for summary judgment based on the signed waiver and release.
- The trial court granted the defendants' motions for summary judgment.
- The appellant, David LaFrenz, appealed the trial court's entry of summary judgment to this intermediate court of appeals.
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Issue:
Is an exculpatory agreement releasing the organizers of a demolition derby from liability for their own negligence valid and enforceable against the estate of a participant who was fatally injured at the event?
Opinions:
Majority - Hoffman, J.
Yes, the exculpatory agreement is valid and enforceable. Generally, parties are free to contract in advance to release one party from liability for its own negligence, and such agreements are not against public policy. The court found that the public policy exceptions to this rule do not apply here. There was no unequal bargaining power, as the decedent, Linda LaFrenz, was under no economic or other compulsion to participate in the voluntary recreational activity. Furthermore, a demolition derby is not a transaction affecting the public interest, unlike services provided by public utilities or common carriers. Applying the standard from Weaver v. American Oil Co., the court determined LaFrenz signed the release 'knowingly and willingly.' The document was clearly titled as a waiver, its language was unambiguous in releasing the organizers from negligence, and the conspicuous bold text 'THIS IS A RELEASE' on the signature line made it impossible for a reasonable person to sign without awareness of its purpose. The appellant's claim of misrepresentation was dismissed as insufficient to create a genuine issue of material fact.
Analysis:
This decision reinforces the validity of exculpatory agreements in the context of voluntary, recreational activities in Indiana. By distinguishing such activities from essential services or situations with unequal bargaining power, the court narrows the applicability of public policy exceptions that could void a waiver. The case provides a clear standard for enforceability, focusing on whether the release was signed 'knowingly and willingly,' and highlights the importance of conspicuous language and clear titles for drafters of such agreements. This precedent makes it more difficult for plaintiffs injured during inherently risky recreational events to overcome a properly executed liability waiver.
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