SB 452: Exculpatory Clauses for Commercial Recreational Facilities Unenforceable Starting Oct. 1
On May 16, 2024, Gov. Moore signed into law Senate Bill 452, which makes exculpatory clauses for ordinary negligence in liability waivers and releases by commercial recreational facilities unenforceable as against public policy. This new law, which will be codified at Courts & Judicial Proceedings Art. § 5–401.2, goes into effect on October 1, 2024.
What is an exculpatory clause?
An exculpatory clause is a “contractual provision relieving a party from liability resulting from a negligent or wrongful act.” Black's Law Dictionary (9th ed.2009). Exculpatory clauses are customary provisions in liability waivers or releases used to limit liability in case of injury due to negligence. Prior to SB 452, exculpatory clauses releasing liability for negligence were generally valid and enforceable.
What does the new law do?
Although provisions intended to release liability for gross negligence or criminal conduct have never been enforceable, under SB 452, now waivers designed to release liability for injuries resulting from ordinary negligence of commercial recreational facilities or their employees are also unenforceable.
Who does the new law apply to?
The new legislation only applies to commercial “recreational facilities.” Although the law does not define “recreational facilities” the Fiscal and Policy Note accompanying SB 452 states that “recreational facilities” is meant to include any commercial recreational facility, a commercial athletic facility, or an amusement attraction. Gymnasiums and swimming pools are specifically included as “recreational facilities.” However, SB 452 specifically exempts “lodging establishments” and “health club services agreements” for services rendered to adults.
Our litigation attorneys have decades of experience helping clients with negligence issues and liability waivers both before and after litigation. If you would like to consult with an attorney about protecting your business with liability waivers or need assistance with a pending or potential lawsuit in Maryland, Washington, DC, or Virginia, please contact one of the litigation attorneys at McNamee Hosea.