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Jan 9, 2024
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Ashley Dorris
PLG205
November 6, 2023
Assignment 4.1: Ethical Responses
Review the Critical Thinking Case 4.9 Exculpatory Clause located on page 112. In a minimum of 150
words, explain if the Exculpatory Clause is valid against Koch. You may need to review outside
resources in reference to the case, Koch v. Spaulding.
Critical Legal Thinking Case 4.9 Exculpatory Clause
“Wilbur Spaulding owned and operated the Jacksonville racetrack at the Morgan Country Fairgrounds,
where automobile races were held. Lawrence P. Koch was a flagman at the raceway. One day when Koch
arrived at the pit shack at the raceway, he was handed a clipboard on which was a track release and
waiver of liability form that released the racetrack from liability for negligence. Koch signed the form and
took up his position as flagman. During the first race, the last car on the track lost control and slid off the
end of the track, striking Koch. Koch suffered a broken leg and other injuries and was unable to work for
14 months. Koch sued Spaulding for damages for negligence. Spaulding asserted that the release form
signed by Koch barred his suit. Is the exculpatory clause valid against Koch?” Koch v. Spaulding, 529
N.E.2d 19 (Ill. App. Ct. 1988).
What is Exculpatory Clause? According to our textbook, “An exculpatory clause (also called a release of
liability clause) is a contractual provision that relieves one (or both) of the parties of a contract from tort
liability. An exculpatory clause can relieve a party of liability for ordinary negligence. It cannot be used in
a situation involving willful conduct, intentional torts, fraud, recklessness, or gross negligence.”
(Schlageter et al.)
Issue
:
Is the exculpatory clause against Koch in the lawsuit against Spaulding, which was brought about by
injuries sustained at the Morgan Country Fairgrounds Raceway due to negligence, valid?
Rule:
Exculpatory agreements, like the one the plaintiff in this case signed, have been ruled to be in
compliance with public policy, according to Schlesman v. Henson (1980), 413 N.E.2d 1252, 83 Ill.2d 82.
An exculpatory clause in the release and waiver of liability form limits the liability of one party, in this
case Spaulding, preventing them from being held responsible for the plaintiff's injuries or expenses
during the time the plaintiff was unable to work due to their injuries.
Analysis
:
On May 28, 1982, while working at the raceway during the Morgan County Fair, Koch was asked to sign a
waiver and release of liability form. Plaintiff Koch signed the waiver of release of liability form without
carefully reading the entire document. It stated that he had signed similar forms for the previous ten
years while working at raceways and that he was aware that doing so would bar him from suing
Spaulding for any injuries he sustained while on the restricted areas (which are defined as all areas
adjacent to any area where any racing occurs, including but not limited to the infield, pit areas, racing
surface, burn out area, approach area, shut down area, and all walkways and concessions).
In addition, "the exculpatory language of the document was not covered, so he was unaware that he was
signing a lease," and "the document itself was clearly captioned that it was a release and waiver of
liability." Furthermore, the statement about reading the release was written on each of the document's
signature lines. These facts should have been sufficient to alert the plaintiff as to the nature of the
document that he was signing" (Koch v. Spalding (1988), 174 Ill.App.3d 692, 529 N.E.2d 19).
Conclusion:
In this instance, the exculpatory clause is enforceable, and Spaulding is not liable or to be held liable for
the injuries caused to Koch. Spaulding complied with all legal obligations and safety measures to avoid
being found negligent or liable. Koch signed a release and waiver of liability form without even reading
the entire document, demonstrating his lack of education. This release and waiver states that neither
Spaulding nor Koch will be held liable for Koch's medical expenses during the duration of his off-duty
period while his injuries heal.
Works Cited:
Contract Law for Paralegals. Tradition and E-Contracts, 2
nd
Edition, Reed, K.M., Cheeseman, H.R.,
Schlageter III, J.J.,
https://platform.virdocs.com/r/s/0/doc/545940/sp/173965845/mi/560680228?cfi=%2F4%2F4
Koch v. Spalding (1988), 174 Ill. App.3d 692, 529 N.E.2d 19.
Schlesman v. Henson (1980), 413 N.E.2d 1252, 83 Ill.2d 82.
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