Tunkl v. Regents of University of California

Rule of Law:

An exculpatory clause in a contract is unenforceable on public policy grounds if the contract involves a transaction that affects the public interest.

Facts:

• Hugo Tunkl sought admission as a patient at the University of California Los Angeles Medical Center, a nonprofit charitable research hospital operated by The Regents of the University of California.
• The hospital selected patients whose conditions were suitable for its primary purposes of research and medical education.
• Upon admission, the hospital required Tunkl to sign a 'Conditions of Admission' document.
• This document contained a clause releasing The Regents and the hospital from any liability for the negligent or wrongful acts of its employees, provided the hospital used due care in selecting them.
• Tunkl signed the document to receive medical services.
• The parties later stipulated that the hospital had used due care in selecting its employees.
• Tunkl subsequently alleged that he suffered personal injuries due to the negligence of two physicians employed by the hospital.

Procedural Posture:

• Hugo Tunkl filed suit in a state trial court against The Regents of the University of California for damages from alleged medical negligence.
• After Tunkl's death, his wife, as executrix, was substituted as the plaintiff.
• The trial court ordered the issue of the exculpatory clause's validity to be tried by a jury first.
• The jury returned a verdict finding the release to be valid and binding on the plaintiff.
• The trial court entered a judgment in favor of the defendant, The Regents.
• The plaintiff appealed the judgment to the Supreme Court of California.