Effective October 1, 2024, New Liability Rules for Exculpatory Clauses
Most recreation businesses, think your local fitness center, swimming pool, or ice skating rink around the holidays, require customers to sign a waiver of liability before allowing a customer to enter the facility and engage in conduct that could result in injuries. Case law in Maryland has been replete with examples of decisions upholding the validity of such agreements, including Seigneur v. National Fitness Inst., Inc., 132 Md. App. 271 (2000) and BJ’s Wholesale Club, Inc. v. Rosen, 435 Md. 714 (2013). That, however, is likely to change.
Effective October 1, 2024, Senate Bill 452 will be new law in Maryland in the Courts and Judicial Proceedings Article of the Maryland Code, and establish new rules concerning liability agreements related to recreational facilities, defined as “a commercial recreational facility, a commercial athletic facility, or an amusement attraction” specifically including gymnasiums and swimming pools as examples. This new law states that any contract or agreement with a recreational facility that seeks to limit, release, indemnify, or hold the recreational facility harmless for injuries caused by negligence or wrongful acts of the facility, its agents, or on-duty employees is void and unenforceable. The new law has exceptions including that it does not apply to “lodging establishments” that do not own, maintain, or operate a recreational facility that is available for use by the general public. It also does not apply to State or local government entities that lease land or facilities to a recreational facility. It also does not apply to “health club services agreements” for services to be rendered to an adult as that term is defined in Section 14-12B-01 of the Commercial Law Article. This new law, even with the applicable exceptions, is a significant shift in Maryland and changes the landscape of tort litigation going forward.
At Eccleston & Wolf, our attorneys have extensive experience representing and defending entities, including recreational facilities, in personal injury claims throughout Maryland, as well as in Washington D.C. and Virginia. If your business has questions or concerns regarding such claims, contact your local Eccleston & Wolf office to see how we can assist you.