June 19, 2013

Tenth Circuit: Signed Release Barred Plaintiff’s Negligence Claim Against Outdoor Education Center

The Tenth Circuit published its opinion in Squires v. Breckenridge Outdoor Education Center on Tuesday, May 7, 2013.

In 2008, Plaintiff, a legally blind child with cerebral palsy and cognitive delays, was severely injured while skiing at Breckenridge Ski Resort in Colorado. Before the trip, Defendant sent documents regarding the trip to the participants’ parents, including Plaintiff’s mother, Mrs. Squires. The documents included a Letter to Students and a Release. Plaintiff and her mother signed the Release.

On the first day of skiing, Plaintiff was injured when another skier lost control and skied into the tethers connecting Plaintiff and her instructor. Plaintiff filed this action claiming Defendant’s negligence and gross negligence caused her injuries. Defendant moved for summary judgment, arguing the Release barred Plaintiff’s negligence claim and there was no evidence to support her gross negligence claim. The magistrate judge granted summary judgment in favor of Defendant on Plaintiff’s negligence claim, and denied Defendant’s motion on Plaintiff’s gross negligence claim. This claim proceeded to a jury, which found Defendant not liable. Plaintiff appealed.

On appeal, Plaintiff argued the Release was unenforceable. She reasoned that the Release was invalid under the four-part test articulated in Jones v. Dressel, 623 P.2d 370 (Colo. 1981), and that her mother did not make an informed decision as required by C.R.S. § 13-22-107.

In determining whether an exculpatory agreement is valid, Colorado courts consider four factors: (1) the existence of a duty to the public; (2) the nature of the service performed; (3) whether the contract was fairly entered into; and (4) whether the intention of the parties is expressed in clear and unambiguous language. Jones, 623 P.2d at 376.

Plaintiff challenged only the magistrate judge’s conclusion on the fourth factor. In making this  determination, Colorado courts examine “the actual language of the agreement for legal jargon, length and complication, and any likelihood of confusion or failure of a party to recognize the full extent of the Release provisions.” Chadwick v. Colt Ross Outfitters, Inc., 100 P.3d 465, 467 (Colo. 2004). The Tenth Circuit found the Release signed by Plaintiff and her mother clearly and unambiguously waived any negligence claims Plaintiff might have brought against Defendant. Contrary to Plaintiff’s argument, Colorado law does not require that exculpatory agreements refer to the specific activity in which the plaintiff participated and was injured.

The Tenth Circuit then turned to whether Mrs. Squires’s consent to the Release was voluntary and informed, as required by C.R.S. § 13-22-107. Plaintiff argued it was not voluntary and informed, because her mother did not understand the risks involved with adaptive skiing and, specifically, the use of bi-skis. Considering not only the language of the Release, but also the information Defendant provided to Plaintiff and Mrs. Squires in connection with the Release, as well as Mrs. Squire’s actual knowledge on the date she signed the Release, the Tenth Circuit concluded Mrs. Squires’s decision to Release Plaintiff’s prospective negligence claims against Defendant was informed. Mrs. Squires had sufficient information from which to evaluate the degree of risk Plaintiff faced.

The Court concluded the Release satisfied both the Jones test and the voluntary and informed requirement of § 13-22-107 and was, therefore, enforceable.

The magistrate judge’s order granting summary judgment to Defendant on Plaintiff’s negligence claim is AFFIRMED.

SB 13-012: Adding Certain Personnel of Youth Sports Organizations to List of Mandatory Reporters of Suspected Child Abuse and Neglect

On Wednesday, January 9, 2013, Sen. Rollie Heath introduced SB 13-012 – Concerning Reporting of Suspected Child Abuse and Neglect by Youth Sports Organizations. This summary is published here courtesy of the Colorado Bar Association’s e-Legislative Report.

The bill adds directors, coaches, assistant coaches, and athletic program personnel for private sports programs or organizations to the list of persons required to report suspected child abuse or neglect to the county or district department of social services or local law enforcement agency. Assigned to the Judiciary Committee.

HB 12-1295: Creating a Colorado Rockies License Plate

On February 9, 2012, Rep. Kevin Priola and Sen. Lois Tochtrop introduced HB 12-1295 – Concerning the Creation of a Colorado Rockies License Plate, and, In Connection Therewith, Making an Appropriation. This summary is published here courtesy of the Colorado Bar Association’s e-Legislative Report.

The bill creates the Colorado Rockies special license plate. A person becomes eligible to use the plate by donating $52.80 to the Colorado Rockies baseball club foundation. In addition to the normal motor vehicle fees, the plate requires 2 one-time fees of $25. One of the fees is credited to the highway users tax fund and the other to the licensing services cash fund. The bill passed out of the House on March 28. The Senate finance Committee approved the bill on March 29 and sent it to the Appropriations Committee on March 29.

Since this summary, the bill made it through the Appropriations Committee and passed three readings on the Senate floor. It was signed by the Speaker of the House at 4:20 p.m. on April 5 and is now awaiting the governor’s signature.

Summaries of other featured bills can be found here.

American Needle v. NFL: Collective Commercial Efforts of Professional Leagues

Editor’s Note: CBA CLE Legal Connection staff track U.S. Supreme Court cases and reactions, but we only post on select cases. We do, however, welcome and encourage members of the Colorado legal community to submit guest posts on recent cases. Please email your submissions to legalconnection@cobar.org.

In American Needle v. NFL, the United States Supreme Court considered whether the NFL’s business organization was properly classified as a single-entity with thirty-two franchises, similar to other franchise businesses like Taco Bell or McDonald’s. American Needle contended that the NFL was more properly classified as thirty-two individual organizations that operate independently, but toward a common goal.

Under the NFL’s business model, NFL Properties was created to develop and promote the NFL brand. Part of this marketing strategy included a new merchandizing agreement and, in 2000, the NFL signed a ten-year licensing agreement with Reebok, giving them exclusive rights to all manufacturing and sales of the sport’s paraphernalia for all thirty-two teams in the NFL. As part of the agreement, the thirty-two teams were prohibited from competing with each other in the licensing of merchandise and were not to contract with any Reebok competitors for that period of time. American Needle was a company that made apparel for the NFL before the exclusive contract with Reebok was signed, and brought suit against the NFL for violation of Section 1 of the Sherman Antitrust Act, claiming the agreement unreasonably restrained competition.

As Casey McLaughlin explains, in defense of American Needle’s claims, the NFL claimed that its organization was not a collection of thirty-two individual businesses, but was a single business entity that was comprised of thirty-two teams; these teams act collectively, not combatively, in promoting the NFL brand and competing against products of other sports and entertainment organizations like the MLB and NBA. If such a classification were to be successful in court, the NFL would be exempt from the Sherman Antitrust Act.

While the Seventh Circuit accepted this business model, holding that the teams act as a single source of economic and promotional power for the NFL through the licensing, the Supreme Court disagreed. Justice Stevens, writing for a unanimous court, found that while the teams as a collective whole have a common interest in promoting the NFL brand, “they are still separate, profit-maximizing entities, and their interests in licensing team trademarks are not necessarily aligned.” The Court determined that because each individual team competed in the market for intellectual property, a manufacturing company would find each individual team to be “potentially competing suppliers of valuable trademarks.”

However, as Kristi Dosh affirms, the Supreme Court did not decide the merits of the case as to whether the NFL teams colluded to exclude American Needle from manufacturing NFL merchandise, creating unfair competition under Section 1 of the Sherman Antitrust Act. A lower court will again take up this issue, evaluating the NFL’s business organization based on the Supreme Court’s findings. The lower court will have to discern whether the any anticompetitive behavior by the NFL is outweighed by business justifications. The NFL has some strong arguments in its favor here, including a showing of evidence that “they garner greater bargaining power when all [thirty-two] teams join together to license their trademarks.” In Justice Stevens’ opinion, he noted that there would be certain times, conditions, and decisions in which collective action might be justified. Additionally, Dosh contends that the bidding process for the exclusive manufacturing contract was a seemingly fair one and was simply awarded to the highest bidder.

Ultimately, American Needle’s win at the Supreme Court does not necessarily foretell a win on remand to determine the underlying issues of the case. However, the Supreme Court’s decision does offer some insight into how the collective commercial efforts of other professional leagues like the NFL may be considered by the Court (excluding MLB, which has specifically been exempt from antitrust laws since 1922), according to Lyle Denniston.

See SCOTUSblog and SCOTUSwiki for more details and analysis of this case, and all recent U.S. Supreme Court cases.

(image source: United States Supreme Court)

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2013-06-19 08:17:30