03/23/2024
Please support opposition to this!!!
The window for submitting testimony on this bill is ONLY 8:00 am - 6:00 pm on Monday March 25. You can create your account anytime before then, but you can only upload your testimony during that window.
In Maryland, most people who enter shows or take lessons or rent horses for a trail ride sign forms that contain clauses that waive claims of ordinary negligence. This bill would make those clauses illegal. Since insurance rates are set in part by claims experience, passage of this bill would likely result in increased insurance premiums for barns, instructors, shows, rental stables, etc. That in turn means increased costs to the consumer. And, since, especially in situations involving horses, establishing negligence can be pretty unclear, this could result in increased litigation, and resulting increased insurance costs. It might result in some places deciding to shut down.
LIABILITY WAIVERS - FINAL UPDATE - 4/8
The Maryland General Assembly today passed Senate Bill 452, which makes provisions in "waiver" or "release" documents that purport to limit a "recreational facility's" liability for ordinary negligence unenforceable.
It is important to note that the bill, as passed, does NOT ban the use of all waivers or releases.
The right to ask clients or customers to acknowledge the risk of an activity and to assume that risk remains unaffected. You should consult with your attorney to see how the provisions of this bill might affect the documents you use in your business.
When we became aware of the bill, we mounted a major grassroots campaign, which was shared throughout the equestrian industry and beyond. The House hearing on 3/27 had well over 100 witnesses in opposition, many from the equestrian community, but also including the Maryland Chamber of Commerce, the Maryland Farm Bureau, the Ocean City Chamber of Commerce, and numerous motor and water sports organizations. There were only about a half dozen witnesses in favor of the bill.
Some of the opponents who were equestrian business owners tried to make the point that, when you are talking about animals in general, and horses in particular, the considerations are fundamentally different from other activities where the equipment and maintenance are entirely in the control of humans. When a horse is involved, even the most careful human cannot prevent certain equine actions/reactions; and even the best trained horse is still a prey animal and can react unpredictably to certain stimuli. Therefore, when an accident happens, it is not so easy to determine whether the cause was human negligence or animal whim.
At the urging of many members of the horse industry, Del. Griffith (R - Cecil & Harford) offered an amendment that would have exempted equine facilities, but it was defeated 34-98. Ultimately, the legislators were persuaded by the argument that businesses should not be allowed to require their customers to waive their right to compensation if they are injured by the business' negligence.
It remains to be seen how the bill will affect the incidence of negligence claims and insurance rates.
MHC PLANS TO HOLD AN EDUCATIONAL WEBINAR IN THE COMING MONTHS TO DISCUSS THIS COMPLEX AREA OF TORT AND CONTRACT LAW. WE WILL POST MORE INFORMATION HERE AS IT BECOMES AVAILABLE.
Stay tuned!
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LIABILITY WAIVERS - LATEST UPDATE 4/5
As expected, today the Senate refused to accept the House's stripped down version of the bill. A conference committee has been appointed, to see if they can work out the differences. The conference committee is composed of Sen. Carter, [email protected], the sponsor of the bill; Sen. Charles, [email protected]; and Sen. West. [email protected].
LATEST UPDATE! 3/29
The House Judiciary Committee concluded their voting session on the Senate version of the liability bill on 3/29. House Judiciary rejected the amendments that the Senate had added. This means that the bill will go back to the Senate, and will likely end up in a Conference Committee. This increases the chance - but does not guarantee - that the bill will not pass this session.
UPDATE -3/27
The House Judiciary Committee held a hearing on this bill today. Although they acknowledged the huge number of comments expressing concern about the bill, it is not clear what they will do. There was no discussion about the fact that - unlike "trampoline parks, climbing gyms, etc." horses are a unique situation. The legislators may not understand that horses are "special case." When you are talking gyms, trampoline parks, etc., you are talking about situations where humans are solely in control of the function and maintenance of the "equipment." With horses - 1,000-1,200 pound animals with minds of their own - not so much. It becomes much harder, when horse behavior is involved, to assign fault to human negligent behavior, or innate horse behavior. But that won't stop the proliferation of litigation, which may, in turn, raise insurance rates.
If you would like to share your thoughts about this bill - for or against - you can contact the committee here: [email protected]
The committee vote to advance the bill to the House floor may happen in the next few days.
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In Maryland most people who enter shows or take lessons or rent horses for a trail ride sign forms that contain clauses that waive claims of ordinary negligence. This bill would make those clauses illegal. Since insurance rates are set in part by claims experience, passage of this bill would likely result in increased insurance premiums for barns, instructors, shows, rental stables, etc. That in turn means increased costs to the consumer. And, since, especially in situations involving horses, establishing negligence can be pretty unclear, this could result in increased litigation, and resulting increased insurance costs. It might result in some places deciding to shut down.
The House Judiciary Committee has scheduled the Senate version of the bill to prohibit waivers of negligence (SB 452) for a hearing on Wednesday, March 27 at 1:00 pm. Because the Committee has already had a hearing on the identical House version (HB 162), this hearing will accept oral testimony only from the bill sponsor. However, it should be possible to submit written testimony. Submitting written testimony through the General Assembly's website is the best way to go, because that testimony will become part of the official bill file; that means that the Committee members will have it in front of them during the hearing, and the testimony will "follow" the bill to the House floor for the final vote.
To submit written testimony, you must first create an account on the General Assembly website. It is very easy to do, and takes only about a minute or so. There is a short (less than 3 minutes) video tutorial on how to set up an account. Scroll to the bottom left to see "My MGA New Account." https://mgaleg.maryland.gov/mgawebsite/Information/VideoTutorials.
Once you have set up your account, you can then go to the General Assembly's main page: https://mgaleg.maryland.gov/mgawebsite/. Click on "MyMGA" on the very upper right, then select "Witness sign up" from the drop down menu. You will then need to scroll down to the House Judiciary Committee list of bills, select "SB 452." check the box on the left next to the bill, and select your position, and that you are submitting written testimony. Then you can upload your written testimony. It must be a .pdf. THE MOST IMPORTANT THING IS TO REMEMBER TO CLICK "SAVE" WHEN YOU HAVE FINISHED. Then, you can also click "Signed up items" to make sure it all went through. The video tutorial on how to do this is here - scroll down to the bottom right, "Witness signup": https://mgaleg.maryland.gov/mgawebsite/Information/VideoTutorials
The window for submitting testimony on this bill is ONLY 8:00 am - 6:00 pm on Monday 3/25. You can create your account anytime before then, but you can only upload your testimony during that window.
If you do not want to submit official written testimony, you can still email the Committee here: [email protected] You can do that at any time, but the legislators may or may not see your individual message. Sometimes staffers review and summarize those emails. Be sure to put "SB 452 - Courts - Prohibited Liability Agreements - Recreational Facilities" in the subject line.
PLEASE ACT NOW!!
A bill is pending in the Maryland Legislature (HB 162/SB 452 - Courts - Prohibited Liability Agreements - Recreational Facilities) that would significantly impact most lesson, boarding and rental stables in the state, as well as competition venues. The text of the bill is here: https://mgaleg.maryland.gov/2024RS/bills/hb/hb0162t.pdf.
This bill would declare provisions in routine liability disclaimers/waivers of negligence claims, as well as clauses relating to indemnification and hold harmless agreements, such as are routinely found in lesson, boarding, and competition documents, null and void as against public policy.
The Legislators' own analysts have concluded: "The bill has a meaningful impact on small business recreational facilities whose contracts contain these provisions and who face increased liability, insurance costs, and/or litigation under the bill."
TIME IS OF THE ESSENCE, as both the House and Senate versions of this bill have passed in their chambers of origin and crossed over to the opposite chamber, where further action could be swift. You can contact the two committees who will vote to send the bill to the floor here: House Judiciary - [email protected]; Senate Judicial Proceedings - [email protected].
If you would also like to contact your personal legislative representatives (who will vote on the bills when they reach the Floor), you can find them and their contact info here: https://mgaleg.maryland.gov/mgawebsite/Members/District Be sure to put "HB 162/SB 452 - Courts - Prohibited Liability Agreements - Recreational Facilities" in the subject line. If you are interested in this issue, ACT NOW!
