I just came across an interesting article that outlines why minor waiver / release agreements should be used even if a particular state’s court system has ruled against their enforceability as well as innovative provisions that should be inserted into the language.
A minor is not considered to be a legally competent party to enter into a binding contract such as a waiver / release agreement. Therefore, their enforceability is dependent upon their parent(s) waiving their right on their behalf.
Reasons why minor waiver / release agreements should be used even if a court in a particular state has ruled that the parental waiver is not enforceable:
* The case law of the state may change.
* The waiver / release may have a psychological impact to deter litigation.
* The organization requiring the waiver / release will be no worse off even if it is not enforceable.
* The risk warning provision in the waiver / release may provide evidence for an assumption or risk defense.
Special wording that may make the waiver / release stronger:
* A provision that the governing substantive law will be based on a state where parental waivers are upheld.
* A parental indemnification agreement where the parents agree to indemnify the sports organization for legal defense and damages that are paid on behalf of the injured minor.
Source: Risk & Insurance, Victor Vepauskas, November 2010
“The Florida Supreme Court has ruled that a parent can’t execute an injury liability waiver for a minor child when the liability release involves participation in a commercial, as opposed to community or nonprofit, activity.”
According to the court, if pre-injury waivers were allowed for commercial establishments, the incentive to take reasonable precautions to defend the safety of minor children would be eliminated.
Florida is one of about ten States that currently recognizes a parental waiver/release for purposes of contractual exculpation and lawsuit dismissal upon summary judgment.
This case is narrower in scope and does not impact the successful use of waiver/release agreements for minors in non commercial settings such as private leagues or municipal recreation departments.
Source: Insurance Journal-Southeast Region, January 12, 2009
Actual Client Question:
We were wondering if you require hard signatures on the release of liability form, player parent contract, code of ethics? We do registration on line to where everyone has their own password to login to their childs registration, in which we have \”I Accept\” buttons. In the past we have had the parents click those buttons and then we have printed the forms and had the parents come to another registration to supply a hard signature. Do you require a hard signature for Insurance purposes or would the trigger button hold up in the event of a claim? What is the guideline for electronic signatures?
Answer:
I am not aware of any current court cases that provide a definitive answer to the question of whether electronic signatures on waiver /release forms will likely be upheld. I recently interviewed the claims department manager and general counsel for one of our largest insurance carriers in the sports insurance niche. They indicated that they did not want to inhibit e commerce by not accepting electronic signatures on waiver / release agreements but would be watching carefully for any court cases on this issue. For now, electronic waiver / release forms are generally being accepted by the insurance carriers.
However, I have some additional concerns that should be addressed. First, the electronic signature should be stronger than simply clicking “I Agree”. It should require that the full name of the parent that is signing. Second, there must be a place for the minor participant to signas well. Some may question this but it is an absolute must. The minor must sign in order to trigger the assumption of risk defense as the waiver / release serves as the risk warning and the acceptance of risk by the minor. If these additional electronic safeguards can’t be initiated, I would advise the use of a paper waiver / release with a hard signature to supplement the electronic registration.
Of course, it goes without saying that the waiver / releases must be properly worded to be given weight by a court. So many of them violate the basic principles of contract law. A copy of a sample waiver /release can be found under the Risk Management section of our website at www.sadlersports.com/riskmanagement.
John Sadler