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Holzer v. Dakota Speedway, Inc.
610 N.W.2d 787
S.D.
2000
Check Treatment

*1 (1952). 383, 55 Absent requisite mutual assent between MXC,

McKennan and the Jurrens case is Jurrens,

inapplicable. See 1998 SD

¶ (An implication 578 N.W.2d at 153

mutual assent cannot overcome direct evi- existed.) that no

dence mutual assent find

[¶ 27.] We that there was no exclu-

sive contract between McKennan and Further, deny-

MXC. the Board’s decision

ing request privileges Read’s for radiology any provision

was not based on set forth III of Bylaws,

Article and therefore

McKennan was in breach contract. It is

unnecessary for this Court to address the pertaining

issues language contract.

CONCLUSION

[¶ 28.] Based on the foregoing, we affirm

and remand this action to the trial court damages. a determination of Justice, MILLER, Chief and

AMUNDSON, KONENKAMP

GILBERTSON, Justices, concur. FITZGERALD, Circuit Judge, SABERS, Justice, disqualified.

2000 SD 65 Marjorie

Paul J. HOLZER J. Wal-

ters, Co-Guardians of the Person and Holzer,

Estate of Vernon Walter Appellants,

Plaintiffs SPEEDWAY, INC.,

DAKOTA a South Corporation,

Dakota and K & K In- Inc., Group,

surance Defendants and

Appellees.

No. 21065.

Supreme Court of South Dakota.

Argued March 2000. May

Decided

Thomas M. Frankman and Dana M. Van Evans, Davenport, Beek of Hurwitz and Smith, Falls, Dakota, Sioux South Attor- neys appellee K K& Insurance. *3 GILBERTSON, Justice [¶ 1.] This case arose from personal a injury accident at Speed the Lake County way, detached, when a race car’s wheel (Hol injured struck and Vernon Holzer1 zer). The circuit granted court both de fendants, Dakota Speedway, (Speed Inc.2 way) (K K K and & Group, Insurance Inc. K) summary & judgment pre- based on a accident signed by Holzer. We affirm. AND

FACTS PROCEDURE Speedway approximately is located Madison, three miles of southwest South Dakota. open Its stock car races аre public. accident, At the time of the grandstand, consisted a itself, pit racetrack a area inside the race- track, separate pit and a area outside the n track. The racetrack was mile oval track, dirt on which stock cars raced in the standard counter-clockwise direction. - pit [¶ A is an 3.] area at racetrack vehicles, where tow racecars and trailers parked prior are racing upon and leav- ing the track. This area also used for tune-ups, pre-race repairs oper- and other drivers, ations. Frequently mechanics and Gienapp David R. and H. William Diet- other pit congregate members of crews Arneson, rich of Issenhuth & Gienapp, August there.’ The area in on use Madison, Dakota, Attorneys South for of, an area and south outside of plaintiffs appellants. and edge southern the track. Schmidt, Spearfish, Harlan A. South Da- [¶ Holzer was serving as member of kota, Attorney plaintiffs appel- and August Bruce Bortnem’s crew on lants. during accident occurred when. David J. Vickers and James lap E. McMa- the ninth or tenth twelve-lap Boyce, Murphy, hon of sportsmen’s McDowell stock car feature race. The Greenfield, Falls, Dakota, Sioux South At- right away wheel and tire from a broke torneys appellee Speedway. car, airborne, Dakota race became and flew over appeal brought County Speedway This on behalf 2. Lake of Vernon is owned and con- co-guardians, Speedway, Paul Holzer and trolled Dakota Inc. The two (Holzer, Maijorie collectively), ‍​‌​‌​​‌‌​​‌‌‌​​‌​​​​​​‌​​‌​‌‌‌‌‌​​‌​‌​​‌‌​‌​​​​‌‍together Walters as will be entities referred this opinion Speedway. Vernon is in a coma. shaft, part axle had bly, to where Holzer was which hundred feet3 one from the mаin fractured and broken off pit area the official behind standing inside Thus, parts of portion of the axle shaft. consisting concrete barricades.4 a wall bell, brake attached axle and were still head, injuries to the He received severe to the tire and wheel when broke loose shoulder, and has been a coma- face and and struck Holzer. date the acci- since the tose condition Nordstrom, technical Arthur advis- dent. entering area 5.] Before inspector 5, 1995, late-model street stock August Holzer was racetrack sportsmen Speed- stock cars at by Speedway cars and requested officials way, Assump- in his affidavit the wheel of Liability, stated “Release Waiver *4 Indemnity Agreement.”5 off the bell assem- tion of Risk and and tire came because tire, traveling southerly inspectors, surveyors, in a and event underwrit- 3. The wheel and direction, ers, southeasterly propelled give were or consultants and others who recom- mendations, directions, straight-away edge at the of the over south the or instructions or track, parked double and over the row of engage in or risk evaluation loss control awaiting racecars the next race. regarding premises or activities EVENTS(s) the them, and each di- of their Ellingson Speedway manager 4. Ronald stated rectors, officers, agents employees, all and barricades, in his affidavit that seven concrete purposes herein referred to "Re- for as approximately high, each three feet served as leasees,” LIABILITY, FROM ALL TO THE a wall. "an di- This wall ran in east/west UNDERSIGNED, personal representa- his approximately south rection located 100 feet tives, assigns, heirs and next of kin FOR edge of the south of the racetrack.” It served DAMAGE, ANY AND ALL LOSS OR AND protect people "to and drivers from ANY CLAIM OR DEMANDS THEREFOR any oncoming anything or that came cars off ON ACCOUNT THE OF INJURY TO PER- the track.” SON OR PROPERTY OR RESULTING IN DEATH OF THE UNDERSIGNED ARIS- 5. The release stated: ING OUT OF TO OR RELATED THE being permitted IN of to CONSIDERATION EVENT(S), WHETHER CAUSED BY THE officiate, observe, for, compete, work or NEGLIGENCE OF THE OR RELEASEES EVENT(S) participate way any in the or OTHERWISE. any being permitted purpose to enter for 3. HEREBY AGREES TO INDEMNIFY (defined any any AREA RESTRICTED AND SAVE AND HOLD HARMLESS the authorization, requiring special area cre- Releasees and of each them FROM ANY permission any to or area dentials or enter LIABILITY, LOSS, DAMAGE, OR COST general to public which admission they arising of to have incur out or related prohibited), or OF UN- rested EACH THE the EVENTS WHETHER CAUSED BYTHE DERSIGNED, himself, personal rep- for NEGLIGENCE THE OR OF RELEASEES resentatives, heirs, and next of kin: OTHERWISE. Acknowledges, agrees, represents 1. and 4. HEREBY ASSUMES FULL RESPON- immediately upon that he has or will enter- OF SIBILITY FOR ANYRISK BODILY IN- AREA, ing any of such RESTRICTED and JURY, DEATH OR PROPERTY DAMAGE thereafter, inspect continuously the RE- will EVENT(S) arising out orof related to the he and STRICTED AREAS which enters he by the whether caused NEGLIGENCE OF that, agrees any further warrants if at and RELEASEES or оtherwise. time, he about AR- or RESTRICTED acknowledges 5. HEREBY THE AC- unsafe, anything EAS and he feels to be EVENT(S) TIVITIES OF THE ARE VERY immediately advise the will officials such DANGEROUS and involve risk of seri- and will leave the RESTRICTED re- and/or injury property ous death EVENT(s). and/or participate to further in the and/or fuse RELEASES, WAIVES, damage. Each THE UNDERSIGNED 2. HEREBY DIS- expressly acknowledges CHARGES, also INJU- AND COVENANTS NOT TO RIES RECEIVED MAY BE COMPOUND- participants, racing promoters, SUE the sociations, as- ED OR INCREASED sanctioning organizations BY NEGLIGENT any or thereof, RESCUE OPERATIONS OR PROCE- operators, subdivision owners, track track drivers, officials, owners, DURES OF THE RELEASEES. car crews, agrees personnel, any that this and persons any HEREBY Release rescue AREA, Assumption promoters, Liability, Waiver of and sponsors, RESTRICTED Risk advertisers, premises Indemnity Agreement extends to all acts owners and lessees Releasees, EVENT(s), premises negligence by used conduct the INCLUDING wishing Ail complaint individuals to enter the Dakota. South alleged neg- required pay entry area were fеe ligence and disregard and against reckless pro- release form. This document life, safety and health of signees vided that the covenant to sue Holzer and negligent inspection and owners, the track their insurers and others duty breach parties third against K & release, waive, discharge them from K. Both Speedway and K K& filed mo- liability all “for any damage, and all loss or tions for summary judgment, which the any claim or demands therefor on trial court granted. appeals Holzer now injury person account of property or raising review, several issues our one resulting of the undersigned death which dispositive: events, out of or arising related genuine Do issues of material fact exist negligence whether caused as to whether the waiver and release releasees otherwise.” This release was signed by Holzer was valid and enforce- any condition to allowed into “re- being able, thus relieving Speedway and its area,” pit, stricted such as applied insurer, K K liability. & from to anyone competing, officiating, observ- *5 for, ing, working participating in races or STANDARD OF REVIEW speedway. The form defines re- “any requiring special stricted area as area [¶ 8.] Our standard of review a circuit authorization, credentials, permission grant or to court’s of a motion for- summary any enter or area by to which admission judgment is well settled. As recently we the general public prohibit- restricted Land, stated Kimball Investment Ltd. ed.” At the bottom of the form are lines v. Chmela: allowing eighteen signatures. Printed Summary judgment is authorized “if the on signature capitalized each line in bold depositions, pleadings, answers to inter- letters, is “I HAVE READ THIS RE- rogatories, file, and admissions on to- signed LEASE.” Holzer this document gether affidavits, with the if any, show- top literally capitalized of these words. that there no genuine to any issue as He previously signed had agree- the same fact, moving material and that party 14, 29, ment on July June 1995 and is entitled judgment as a matter of accident, K, [¶ At the time K of the & 15-6-56(c). law.” SDCL We will affirm an underwriting agent for Transamerica only when there no genuine are issues of Group, Insurance provided liability insur- legal material fact and the questions coverage ance K & Speedway. K had correctly have been Bego decided. v. nothing inspection. do with A vehicle Gordon, (S.D.1987). 801, 407 N.W.2d 804 responsible official was for in- All reasonable inferences drawn from specting racecars each before race for the facts be viewed in favor of must safety precautions. Baldwin, non-moving party. Morgan v. July 27, 1998, On 783, (S.D.1990).

[¶7.] Holzer 450 filed N.W.2d 785 The complaint against Speedway and K & K in burden is moving party on the clearly Circuit, County, Fourth Judicial Lake an any genuine show absence of issue of TERMS,.UNDERSTAND NEGLIGENT RESCUE OPERATIONS and UNDERSTAND ITS is intended to be as broad and inclusive аs THAT I HAVE GIVEN UP SUBSTANTIAL permitted by IT, the laws of the Province or RIGHTS BY AND SIGNING HAVE Event(s) State in which conducted SIGNED IT AND FREELY VOLUNTARILY is/are any INDUCEMENT, portion and that if thereof is held inval- WITHOUT ANY ASSUR id, shall, agreed it is that the balance not- ANCE OR GUARANTEE BEING MADE TO withstanding, legal continue in full ME force AND MY SIGNATURE TO BE A INTEND and effect. COMPLETE AND ÚNCONDITIONAL RE I HAVE READ THIS RELEASE AND WAIV LEASE OF LIABILITY TO THE GREAT ALL LIABILITY, ER OF ASSUMPTION OF (emphasis RISK EST EXTENT BY ALLOWED LAW. AGREEMENT, original).

AND INDEMNITY FULLY 792 by signed The Holzer document judg- [¶ 13.] an fact and entitlement

material more separate document. As will be law. v. was Wilson ment as a matter 207, 212, fully developed, this concern is connected Co., 157 Ry. N. 83 S.D. Great ‍​‌​‌​​‌‌​​‌‌‌​​‌​​​​​​‌​​‌​‌‌‌‌‌​​‌​‌​​‌‌​‌​​​​‌‍knowledge (1968). and voluntari- 19, with claims 21 N.W.2d ness. ¶ 7, 289, 6, (citing 292 2000 SD ¶ ancients, Rachetto, 51, 8, of the SD Since the time

Mattson v. racing on foot and (quoting Shuck v. Per records exist of 816-17 ¶ 6, enlarged Century The 20th has 577 N.W.2d animal. County, 1998 SD kins 586)). racing competition to that of “Summary judgment scope will be rac- any dangerousness affirmed if there exists basis which motor vehicles. ruling.” automobiles at the fastest support ing the trial court’s numerous would Game, speeds and Parks is obvious. such Dept., possible v. Fish SD Wolff ¶ 23, 32, instаnce, thing as an there is no such SD 544 N.W.2d race. The one inherently Fire Marine Ins. v. safe auto closer (citing Paul & St. (S.D.1994)) S84, the risk of greater is to the action the Schilling, 520 N.W.2d added). injury placed death. Holzer’s duties (emphasis track, edge

him at the close to AND ANALYSIS DECISION racing action. recognized have that releases [¶ 15.] We genuine material Do issues of signed typical such as the form Holzer are exist the release fact as to whether racing industry. used in the See of those signed valid and en- Beauchene, Lee forceable, relieving Speedway thus *6 (S.D.1983) Nadel, (citing G. Anno- Andrea insurer, K K & from liabili- its tation, or Death Liability Injury ty. for Automobile Race Participant or Horse argues Holzer the release violates [¶ 10.] (1982) Track, 13 at Public A.L.R.4th 623 public policy and therefore is ineffective Nadel]); Randy see J. also [hereinafter He also contends and unenforceable. Annotation, Sutton, Validity, Cоnstruc- summary judg- granting the motion for tion, Agreement Exempting and Effect of improper

ment was because whether Facility Li- Operator Amusement from re- knowingly voluntarily signed ability Injury Personal or Death of jury. question is a of fact We lease Patron, (1998)[hereinaf- 5th 513 54 A.L.R. arguments. disagree with both Lee, plaintiff In stock car Sutton]. ter Policy 11.] A. Public [¶ injuries car driver sustained when his flipped, A re- a hole in the track and involving review of cases struck him activity leaving paralyzed es- from the waist concerning leases recreational (1) general anticipa- Upon entering down. the racetrack before tablishes two trends: accident, to tory, pre-injury required are much more Lee was a releases affirming In the cir- likely agreement. to be deemed valid and enforceable grant summary judgment a they separate when are written on docu- cuit court’s part separate speedway, written we stated absent ment and not as the defendant (2) directive, inherently legislative “a these releases have material and the more dan- contrary activity, they attacks that are gerous risky or recreational withstood Lee, likely public policy.” release will 337 N.W.2d at 828 anticipatory the more City (citing Hills Rac- Rapid Tope held valid. v. v. Road be Johnson Waterford (S.D. Ass’n., ing Mich.App. 265 N.W.2d Corp., Softball 1994) (Wuest, (1978)). concurring in result and Dakota no such J. South legislative directive exits.6 concurring specially). legisla- moving a direction policy by the ture would seem be

6. Public as established However, lessness,” place [¶ 16.] releases that Speedway’s conduct willful or negligence are construed cover coverage release, outside the of the ques intentional torts are not valid and are tion of fact must exist that Speedway acted against public policy. (citing Id. Winter- disregard with a “conscious of an unrea Wilcom, Md.App. stein v. 293 A.2d sonable and substantial risk serious bod 53-9-3). (1972); SDCL “Willful and ily to another.” Id. harm something wanton misconduct more Although Holzer raises this ordinary negligence than but less than de claim, legal the record does not contain liberate intentional conduct.” Id. at 829 any supporting showing facts Speedway Rohde, (citing 66 S.D. Granflaten recklessly or consciously disregarded any (1938)). alleged 283 N.W. 153 risk harm to him. Seven concrete bar complaint his “negli that acted ricades, approximately each three feet gently and disregard with reckless toward high, protectivé served aas wall “to pro life, safety, and health” “to failing tect the people and drivers from any provide protection adequate from the race oncoming anything cars that came off track pits, they for the individuals in the the track.” fаiled to warn pits individuals in the potential they dangers, and located the Holzer also alleges that be unsafe, in an pits unprotected and unse cause the area in use on the night of his cured area.” accident pit area, not the interior willful, gross, [¶ 17.] “Conduct is genuine issue of material fact as to exists wanton, or person reckless when acts or whether it contributed to his accident. act, fails to with a conscious realization However, Ellingson stated his affidavit injury probable, distinguished evening “[t]hat and throughout the last 3 possible from a (ordinary negligence), re years, pitting we’ve been on the outside of sult such conduct.” Id. (citing VerBou 'Thus, the racetrack.” Speedway had al Products, wens v. Hamm Wood 334 ready using been area regularly, (S.D.1983) (emphasis in and there no evidence in the record *7 (Second) original)). The of Restatement indicating any accidents had occurred in (1965) § Torts 500 the defines recklessness years those three because of its location of standard as: the area. is in nothing There the The actor’s conduct is in reckless disre- question record to create a of fact that of gard of safety another if he does Speedway knew or had reason to know of an act or intentionally fails to an do act an unreasonable risk of harm to Holzer ‍​‌​‌​​‌‌​​‌‌‌​​‌​​​​​​‌​​‌​‌‌‌‌‌​​‌​‌​​‌‌​‌​​​​‌‍or do, duty which it to the other to other workers because of the" location knowing or having reason to know of Hovey, See v. area. Huber 501 facts which would lead reasonable (Iowa 1993) N.W.2d 53 (summary judg [person] not only to realize that his con- ment affirmed in of raceway favor based duct creates an of unreasonable risk upon a person-standing release-where a in physical another, harm to but also such a pit area was struck a wheel and axle

risk substantially greater than that par had become detached from a car is necessary which to make his conduct race); Kellar, 509 ticipating in a at N.W.2d negligent. (stating plaintiff 96 allege failed to defen 162, v. Lloyd, Kellar 180 Wis.2d 509 dants knew or had reason of to know an 87, Thus, (Ct.App.1993). N.W.2d 95 for unreasonable risk of harm her flag prevail Holzer to theory under a of “reck ging workers of of design because Inc., 93, providing inherently of liability limited Sports SD men’s 1999 dangerous sporting 99, events. See ch. 42- SDCL v. Corp., 525 and Nielson AT & T 1999 SD providing immunity 11 engaging limited 597 N.W.2d 434. equine activity. in See also Vilhauer Horse- 794 exculpa- courts have found 23.] Some [¶ the racetrack her

structure at station public when policy violate injured). tory releases where she a matter interest they involve alleged has Holzer [¶ 20.] Nor large at or the state. Seaton v. public know had reason to knew or Inc., 400 Pa.Su- Speedway, East Windsor from in race car which any defects (1990). 1380, 134, 1382 per. 582 A.2d See id. The broke loose. tire wheel and However, in public interest recreation when it stated court was correct circuit facility an es- typically providing involves a the file “[u]pon searching opinion, its letter n Sutton, su- public service. See sential willful, or intentional I no wanton can find matters of interest pra at 528. Other place an of fact issue which would conduct employer- “the public or state include it out of the release taking question service, pub- relationship, public employee Lee, at 829. area.”7 337 See carriers, hospi- utilities, lic common complained conduct The [¶21.] Seaton, 1382 (citing A.2d at tals.” 582 that occurred are of accident type Inc., Enterprises, 252 v. Deseret Leidy by, and contemplated within clearly (1977)). 164, 162, 381 A.2d 167 Pa.Super. failed to release. Holzer has scope a claim evidentiary support for provide any signed this The place that would of willful or reckless acts public a matter does not involve case the coverage outside Speedway’s conduct interest, rather, private agreement but of the release. Such a release has between individuals. little, the release argues impact Holzer also any, negative 'if on the very public involves a policy because violates v. Reading general population. See Grbac do not public in recreation. We Co., interest Inc., F.Supp. 521 1355 Fair Dakota; releases Besides South agree. (W.D.Pa.1981) (concluding “a release in an races have been participants in automobile participation in agreement concerning public any and found not violate upheld any automobile race does contravene jurisdictions. See policy a number law”). dealing are with policy of the “We cases); Nadel, (citing Gore v. supra 635 public par- fairly segment narrow Inc., F.Supp. Raceway, Tri-County relatively dangerous sport- in a ticipating (M.D.Ala.1974) (citing Doster v. public as a whole ing activity. general Inc., Ga.App. Nalley, C.V. minimally Tope, affected.” (1957); v. New Bre Seymour S.E.2d 432 utility at 764. Nor does this case involve Inc., Speedway, App.2d 31 Ohio men supplies quasi-public entity or other (1971); v. Keden N.E.2d 111 Theroux Id. at essential services. Assn., 50 Misc.2d burg Racing *8 participated Speedway in 25.] Holzer [¶ 789; Sports Associ N.Y.S.2d Lee v. Allied automobile races as a form of recreation— ates, (1965); 349 209 N.E.2d 329 Mass. Morton, depend working did not as 279 his livelihood v. Corpus Speedway Christi crew, as a a as he served a (Tex.Civ.App.1955)). member of 903 S.W.2d states, issue, also plated "[i]t its occurrence.” He of this we 7. Becaúse of our resolution that, fact, in in the manner which the the accident seems do not reach the whether issue However, only was left the ‘freak’ we do note that tire vehicle was foreseeable. accident, place at occurred in the race- accident but evidence in the record indicates the unlikely.” extremely Hol- prevented. where it was have Nordstrom track could not been states, no doubt that "[t]here there would have zer further stated in his affidavit that during accident could not have been con- nothing to see an this ‘freak’ been look for or parties.” templated by It is either one the inspection of also could the vehicle. There Speedway per- warning type apparent the record that of this from have been no advance fact, safety inspections the racecars be- a wheel axle. Holzer con- formed break to In shоwing how this appellate each race. There no fore "[b]ecause cedes in his brief accident, be “reckless” conduct could characterized cannot be said that nature of realistically "willful.” contem- Mr. Holzer could have

795 racing nonpaid for the Bortnem of this claim holding volunteer mindful of our Grbac, Thus, F.Supp. 521 at team. 1355. accepts “one who a contract is conclusively compelled in any way Holzer was not to presumed to know its contents and to as enter the area. See Gervasi them, fraud, sent in the absence of Inc., Raceway, Holland 40 A.D.2d misrepresentation or other wrongful act (N.Y.App.Div.1972) 334 N.Y.S.2d 529 another contracting party.” LPN Trust v. (rejecting argument that a ¶ release was Farrar, 97, 13, 1996 SD 552 N.W.2d public policy unenforceable as violative of (citing Lockhart, 799 Flynn v. racing

when mechanics were not employ- 743, (S.D.1995) (quoting 746 17A Am. racetrack, they ees of the defendant (1991))). § Jur.2d Contracts participate could have refused to in the [¶ 29.] Holzer given claims was release); Gore, sign race toor “meaningful no opportunity read the (noting at F.Supp. “participation agreement signing before [it].” He relies in automobile and other sporting races heavily on Eder v. Lake Raceway, Geneva voluntary is a undertaking.”). events If 187 Wis.2d 429 (Ct.App. enjoyment Holzer’s recreational was 1994) for this contention. Eder race, involved viewing from achieved he could who, spectators two required being after specta- have entered the grandstands as a to. a release and waiver of liability subject tor and would not have been before entering raceway, injured were he signed a member aof become when a motorbike left the racetrack and pit crew. struck each of them. 523 N.W.2d at 430- public policy There is no in this 31. The court reversed the circuit court’s against promoters being state race afford- grant summary judgment in favor of the protection ed spon- some contractual raceway. soring racing, inherently automobile Lee, dangerous sport. at 828. circumstances and facts in- Grbac, agree We with the court in when it in Eder are distinguishable volved from promoters willing stated: “fewer First, would be the case us. before Eder involved to hold automobile races if 'spectators, courts refused observing two who were permit them to limit exposure their to races grandstand from the when they were accidents, liability for racetrack case, what is injured. actually this Holzer was undeniably sport.” a dangerous 521 participating in the races aas crew 1355; Gore, F.Supp. m,ember. at see Second, also plaintiff Eder was F.Supp. at (stating agreе- these stopped “[i]f parking lot entering before ments, ... upheld, were not the effect vehicle, track while she still in her would be to liability increase those spectators with other waiting behind her. organizing sponsoring such events to at Id. 430. The court “[w]e stated cannot such an extent that no one would be will- Raceway believe intended that entrants [them].”). ing sponsor to undertake to' up We hold would of cars into progression find the release this case does not vio- the racetrack in order to read the release.” public policy. late Finally, injured spectators Id. *9 had never to been the racetrack before the B. Knowledge [¶ 27.] and Voluntariness. accident. The court “[signifi- concluded [¶ 28.] Holzer also contends that familiarity cant with the dangers involved knowingly voluntarily whether he plus knowledge of the terms of the release signed the a question release is fact of necessary precedent” are conditions en- valid, jury. the be a “To release must be the force release. Id. at 433. Johnson, fairly knowingly made.” 514 Ltd., N.W.2d at 697 (citing Paterek v. 6600 Holzer on [¶ 31.] relies the affidavit of 445, 342, Sanner, 186 Mich.App. 465 N.W.2d Jay regular pit 344 crew worker at (1990)). However, we analysis Speedway. commence in the Sanner stated his affi- 796 area, generally a release is one of pit obtaining to the upon that entrance

davit Lee, (citing N.E.2d at Bar- fact.” 209 333 required sign waiver pit workers were 35, 33, 18 Conragan, 302 Mass. people rett v. there are several form and “that 369). Here, however, there are no N.E.2d area at waiting gain entrance repre- any indicating facts made only thing on Affi- The same time. the him, represen- false entering gate let alone time the sentations mind at the of ant’s attempt signing. is made to what he was There no tations as rаcing and therefore that waiver form.” no evidence and no contention to read the aforementioned is also However, in the rec- the sheet was printing there is no evidence the release cov- opportuni- the was denied concealed from Holzer. ord Holzer ered or otherwise may 332; Seaton, have any line that A.2d ty step out of 582 at Id. at see also had he so the release plaintiff existed and read did not make an (finding 1383 in rec- no evidence desired. There is that the he was allegation signed release it. sign forced to While ord he was hidden so as to consti- folded or otherwise fraud). waiting at people” may have been “several tute area, there same time to enter This is also not a case where [¶ 34.] workers were denied no evidence he a roster or signing Holzer was told was to read the release оr ask opportunity of instead a release. some other document Lee, 209 N.E.2d at questions about it. See (not Johnson, Compare at 698 “[although people the line of (stating 332 was told she needed to ing Johnson at on which the release sheets the table play team roster before she could on the was ‘rolling along,’ located was there were team, when the ac softball document was op- no that Lee was denied the evidence ‍​‌​‌​​‌‌​​‌‌‌​​‌​​​​​​‌​​‌​‌‌‌‌‌​​‌​‌​​‌‌​‌​​​​‌‍release). tually a Nor was disclaimer had so portunity to read the release he inconspicu liability language hidden desired.”). City ously in the release. See Baker v. Seattle, 405, 1. Misrepresentation 79 Wash.2d 484 P.2d 406- (1971) (holding 07 release invalid when dis “[a] This Court has held [¶ 33.] claimer was buried the middle of the if fairly not made and is invalid release is conspicuous). agreement and was misrep was of the instrument the nature presented tо Holzer contained its release was resented or there other fraudulent language capital critical in block letters in Johnson, 514 overreaching conduct.” any print. bold “In the absence con Paterek, (citing N.W.2d at 697 representations as to cealment or false Trust, 344); LPN see also SD it of the release could be contents ¶ 13, 552 at 799. Other courts also matter law that the [a] ruled as of fraud or breach look evidence Lee, procured by fraud.” was not trust: Although N.E.2d at 333. unfortunate In the of fraud or a relation absence explain is not able to his intent par- between trust and confidence release, we have not discovered signing ties, ordinarily can not avoid releasor indicating any the record he evidence upon ground of a release effect misled, signing coerced or forced into signed paper that at the time he the fоrm. contents, its but did not read it or know 2. Comprehension it. another said relied on what about Seaton, (citing Am. Paul Holzer states A.2d at 1383 (1973); Ray § affidavit that Holzer “was of lower intelli Jur.2d Release Ackler Indus., Inc., unsure whether Pa.Super. gence [Paul was] mark (1988); the release or Standard could even read [Holzer] 551 A.2d 294-95 *10 implications of what he Empire Blind v. American understand] Venetian Co. (1983)). Co., 300, states signing.” A.2d 563 was Paul Holzer further Ins. 503 Pa. 469 in in question there is fraud his affidavit: “The whether

797 poor Vernon was a His student. read AND INTEND MY SIGNATURE TO ing comprehension very was low. The BE A COMPLETE AND UNCONDI- grade highest English he attained TIONAL RELEASE OF ALL LIABIL- Literature was a D+ ninth grad as a ITY TO THE GREATEST EXTENT passed er.... through Vernon was BY ALLOWED (capitalization LAW. school, although I do not believe he original). graduated should have been. He 105th In addition to statement, this printed on in a days class 110. He had 14 each signature line in capitalized bold let- always absences as a senior ... I took ters, “I HAVE READ THIS RE- care to rеad him things explain LEASE.” signed his name direct- writing that he insure understood ly top on these words. read, comprehension what he as his poor. This ambiguous. release not It Initially, we must direct, note simple and cannot be “understood language signed by the release Hol- in more than one sense.” To hold rea unambiguous. zer is “Whether the lan person sonable would not realize sig guage of a contract is ambiguous is ordi nificance of the release signed by Holzer narily question of law.” Enchanted ignore would be to the unambiguous text Buskohl, Doll World Museum 398 of the document. v. St. Haines Charles 149, (S.D.1986) N.W.2d 151 (citing Jensen Inc., Speedway, 572, (8th 874 F.2d 575 International, Ltd., v. Pure Plant Food Cir.1989); Doolin, see also Provence v. 261, (S.D.1979)). 274 N.W.2d The lan 271, Ill.App.3d 46 Ill.Dec. 414 N.E.2d guage may a contract be said to be (1980) (ruling the form and lan ambiguous when “it is reasonably capable guage agreement of an stating “WAIVER being understood in more than one AND RELEASE FROM LIABILITY Ponderosa-Nevada, sense.” Id. (citing AGREEMENT,” AND INDEMNITY “is Venners, Inc. v. 90 S.D. 243 N.W.2d conspicuous so that reasonable men could (1976); Co., Jones v. American Oil 87 not reach different conclusions the im 384, 387, (1973)). S.D. port and significance of the instrument person Johnson, where a knowingly willingly In ruling this Court in document.”). signed the genuine permit par issue of material “To fact existed as to ty, contract, when sued whether Johnson on a written sign- was aware she was release, ing a admit that signed deny it but to it recognized “the did plain expresses not contain a the agreement and clear he made or statement directly signature him allow to admit that he signed lines.” 514 but before us, at did not read it or stipulations case before know its release did contain a would unambigu- absolutely destroy clear the value of all ¶ ous immediately Trust, 97, 13, statement sig- before the contracts.” LPN 1996 SD provides: nature line. The statement 552 N.W.2d at 799 17A (citing Am.Jur.2d (1991)); Huber, §§ Contracts 224-228 I HAVE READ THIS AND RELEASE LIABILITY, 55. In WAIVER OF Johnson we cited with ASSUMP- Omer, approval v. City Dombrowski TION OF RISK AND INDEMNITY AGREEMENT, (1993), Mich.App. 502 N.W.2d 707 FULLY UNDER- TERMS, STAND which signed ITS also involved the of a UNDERSTAND issue THAT I waiver liability participation HAVE GIVEN UP in a SUBSTAN- IT, TIAL sporting RIGHTS BY event. SIGNING AND Dombrowski held that HAVE SIGNED IT signs FREELY AND “one who a contract cannot seek to VOLUNTARILY WITHOUT ANY IN- invalidate it on the basis that he or she did DUCEMENT, ASSURANCE it ... showing OR read absent a of fraud GUARANTEE MADE BEING TO ME or mutual mistake.” 502 N.W.2d at 710. *11 spectator as to their and participant the cir- fully considered Having [¶ 40.] of a race car’s characteristics knowledge the execution of surrounding cumstances argu- knowledge and their release, during Holzer’s a race we conclude liability. mate- of a waiver of “Just genuine legal fail that issues effect ment must compre- to ability his from as to were not deterred rial fact exist as the drivers agreement. being in- danger terms of the hend the participating a Haines, validity crash, upheld the the court in crew members jured a he car driver after by race signed releаse a near to station themselves who chose court considered injured. accepted was obvious signals to give track only possessed Provence, that he Haines’ claim car.” being risk of struck ability, and grade reading second or third 414 N.E.2d at Ill.Dec. .46 is function- Norman Haines “[i]f concluded established there Speedway has [¶ 44.] illiterate, duty procure to it was ally fact con- issues of material genuine are no explain to the release to read someone and we hold that cerning the release Haines, 874 F.2d it.” signing him before judgment to as Speedway was entitled at 575. release unambiguous law. The matter of case, Similarly, although in this [¶ 41.] Speed- signed effectively released pos- legally competent, and Holzer was law. way liability from as a matter of diploma,-if high school Holzer’s sessed a and ratio- upon the same document Based explain writings to typically father had K released K & Insurance nale also he he what him to “insure that understood Group Speedway’s underwriter/insurer. read,” have re- Holzer should either then Huber, N.W.2d at where (Compare explain the release quested someone to specifically as the K K not released & was it, simply refused signing him before for the track’s owner underwriter/insurer re- unambiguous sign. There are three operator). Affirmed. and record, before the in the two from leases question, in all with and the one accident [¶ 45.] AMUNDSON signature. Holzer’s KONENKAMP, Justices, concur. legal or There can be no valid [¶ 42.] Justice, SABERS, in concurs [¶ 46.] disputing he vol- whether argument

factual result. untarily, knowingly chose we are sensitive agreement. While MILLER, Justice, Chief concurs Holzer, facing now circumstances part. in part in and dissents sport placed “doubtlessly that knew result). SABERS, in (concurring Justice spectators.” pаrticipants risks both agree I with Chief Justice 48.] would [¶ volunteer crew Id. He had worked as a if the first writing this were such Miller’s other occasions member on at least two LIABILI- AND WAIVER OF RELEASE Ellingson stated prior to his accident. TY, AND IN- OF RISK ASSUMPTION Holzer was “relr although his affidavit that that DEMNITY AGREEMENT form Ver- circuit,” racing atively a new man him, Unfortunately for signed. non buying some- “looking Holzer had been third RELEASE fact is that this deeply getting “was body’s [race] car” and that OF LIABILITY form AND WAIVER in racing.” interested signed. Vernon racing not an indi- Automobile numerous driv- vidual It involves sport. MILLER, (concurring Chief Justice staff, ers, and is finan- support pit crews dissenting part) part and the attendance of cially supported by generally agree requiring I spectators. paying substantial number sign a participants to reasonable, require car race It nor realistic policy. public liability is not violative individually test each management

799 However, grant it improper was to sum- to gain entrance pit area at the mary judgment on the issue Holzer’s only same time. The thing on [Sanner’s] voluntariness, knowledge genu- because at mind the time of entering gate the is presented ine issues of material fact were racing and therefore no attempt is made the court. read the aforementioned waiver form. To the best of knowledge, [Sanner’s] this is Initially, [¶ 50.] it must be noted that only way pit into the area before enter- summary judgment usually is not suitable ing a race.” involving actions state of mind. Wilson Co., 207, 212, Ry. v. Great N. 83 S.D. 157 [¶ 53.] The waiver form and Sanner’s (1968). also, 22 N.W.2d See Ahl v. affidavit, together with common knowl- Arnio, (S.D.1986). N.W.2d edge, could well lead a factfinder to con- “[Sjurmise a party that will not prevail clude that Holzer unknowingly or involun- upon trial is not grant sufficient basis to tarily signed the part waiver form as [summary judgment] on issues which are pressure-filled routine of gaining access sham, not shown to be frivolous so pit area. pieces These of evidence unsubstantial that it is obvious would be show that Holzer was among a steady Wilson, to try futile them.” at S.D. stream of people waiting pit to enter the 21; also, Ahl, at N.W.2d see night. area that at appeal, 533. On we are not to [¶ As fact, out, 54.] Sanner’s points decide the affidavit only issue whether one Wilson, important 211,157 exists. signing 83 S.D. at ramifications of waiver were not discussed or even men- participants tioned to those in line waiting The record contains several items Instead, to enter. they were all handed raise legitimate factual issue wheth- form, the roster-like told to print sign and er Holzer knowingly or willingly signed name, their and then required pay a fee. First, itself, the waiver. the waiver form situation, In this thing the last on the mind which attached to this writing, confus- of these entrants was understanding their ing misleading. and At the bottom half of legal rights. Rather, they were focused on the rоster-like form there are 18 lines getting prepare into the area to for the containing the same signatures. number of Surely, race. when faced with choice signer Each name, print asked to blindly signing pro- the roster-form and states, sign his name a provision over ceeding area, on into the signing or not release,’’and “I have read this list his jeopardizing and qualification of his printed name, duties. Holzer’s signature, race, team to participant opt would “# 2” appear and on the second line the former. waiver, followed signa- sixteen other tures. Moreover, the format of the waiv- Next, the record contains the affi- form clearly, er to de-emphasize served its Sanner, davit of Jay who important Indeed, has attended legal effect. it could be races, many automobile including races at more petition likened to a or a roster County Sрeedway, (forms Lake and has entered that do not require an individual and worked in the area for pause various appreciate race consequences car drivers. document) Based on his familiarity with signing such a than a legally process gain utilized to entrance to binding release of liability. itsWith small pit area of County Lake Speedway, print, single-spaced paragraphs, blank that, “upon testified gate, entrance to the lines signatures for numerous at the bot- waiver form tom, is handed to the individual easily reader could confuse the form entering pit, they print are told to and with a insignificant document of legal ram- in, and then pay entry ifications, their fee.” In especially when it presented addition, “there are people several waiting explanation. without It would been a have (8thCir.l989) (providing 874 F.2d process appropriate meaningful more 572/ forms). aTo waiver examples of similar an individual given been person had each *13 function, the reading limited person with waiver. and release just well been one have as form could ap- participants That none of [¶ as legalese such dialogues, with Plato’s they what significance preciated the of,” “cove- “indemnity,” “in consideration the waiver from is evident signing were sue,” in “hold harmless” not to nants participants it directed form itself. Where poor reading capital letters. Holzer’s bold “duties,” including everyone, to list their large crowd ability, combined with numbers, pre- which Holzer, merely listed to the gain to access participants waiting the car number of sumably referred him, surely could have pit area behind a Such they worked. team on whose signed where he a situation created the contention response .supports vague peоple just the flow of keep to waiver form or the confusing form was that either least, a very creates going. At it, or signing hurried into signers were fact. of material genuine issue both. majority that “there The states type at this Any spectator [¶57.] Holzer was in the record that no evidence parade of certainly seen event has step to out of opportunity denied the any ‍​‌​‌​​‌‌​​‌‌‌​​‌​​​​​​‌​​‌​‌‌‌‌‌​​‌​‌​​‌‌​‌​​​​‌‍wait- race cars trailers pulling vehicles may and read-the have existed line that to the race. prior area to enter the ing what? had he so desired.” So release form, together waiver format of the The Speedway of- it show that Neither does partic- under which the circumstances with it. step to let him aside read fered to required as Holzér were ipants such opinion further concludes majority The knowing how about sign, question create a no in the record that evidence “[t]here liability a voluntary such a to it.” Such was forced specta- Like the line of could have been. realities is out of touch with the conclusion in v. waiting get to into the race Eder tors above, noted of the situation. For reasons Inc., Raceway, 187 Wis.2d Lake Geneva not the same scenario clearly this is 596, (Ct.App.1994), there 523 N.W.2d Haines, presented in where the court opportunity for Holzer meaningful nowas functionally opined plaintiff that if the was signing. agreement before to read the illiterate, to have someone duty it was his intended [Speedway] cannot “We believe signing him it. release to before up progres- read the would hold that entrants 874 F.2d at 575. into the racetrack order sion of cars at this release.” Id. 432. read the summary judgment Under our situation, not signature would Holzer’s review, we are bound inde- standard a at least entirely voluntary; have been any genu- the record for pendently review jury present. question fact fact, in most light of material ine issue Holzer, non-moving party. the hur favorable compounding 58.]-Further Township, v. Howard 1997 SD ried, Fritz pressure-filled facing situation ¶ are not have had We might that he the fact was n merit, as such facts have comprehend the decide whether ability to read or question pre- majority an has done. “The contains affi form. The record waiver effect, summary judgment a motion by sented Paul Holzer to this stat davit from genuine is a issue or not there very poor stu is whether was a ing that “Vernon contemplate fact. ‘It does not comprehension was of material reading ... dent. His form, issue of court shall decide such that the The which contains very low.” fact, terms, whether one only but shall determine legal seemingly abundance ” Jensen, 519 N.W.2d Piner v. boilerplate lawyers. drafted exists.’ document (S.D.1994) Wilson, n.6; Eder, (quoting See, at 433 e.g., N.W.2d 21). Inc., 211,157 at S.D. Speedway, Haines Saint Charles [¶ 61.] Guided this standard of re- it. denied guarantees Constitution view, genuine I find a issue of material fact that courts shall open remain trial —the as to exists Holzer’s knowledge or intent in court it.” Reiman, closed Reeves v. signing the waiver. It should now be left (S.D.1994) (Sabers, J., con- to the factfinder to decide the merits of the curring result part dissenting claim. As Justice appropriate- Sabers has part). That principle clearly applies here. ly observed: guarantees “The Constitution I would reverse. right jury trial —the trial court *14 LIABILITY, OF AND WAIVER RELÉASE OF AGREEMENT

ASSUMPTION RISK AND INDEMNITY EVENT(S) officiate, observe, any in the way work or permitted participate to compete, for. IN CONSIDERATION boina authorization, (defined requiring as area any any special RESTRICTED AREA being any to enter tor permitted potpose or credentials, EACH prohibited), is restricted or permission general pubBc any to enter or area to which admission or heirs, kin: himself, and next of UNDERSIGNED, personal representatives, lor his THE OF AREAS, Immediately any of Birch RESTRICTED upon he has wiB represents or Acknowledges, agrees, entering that, agrees and warrants thereafter, which he enters and he further continuously Inspect RESTRICTED AREAS and wilt unsafe, Immediately wffl advise to be he time, anything or AREAS and feels about RESTRICTED any he Is in if EVENT(s). offc.,13 further In the participate and/or the RESTRICTED AREAS refuse to will leave of 6uch and racing participants, TO the promoters, AND COVENANTS NOT SUE RELEASES, WAIVES, DISCHARGES 2. HEREBY owneis, officials, drf- owners, car thereof, track operators, or any subdivision track associations, organizations sanctioning advertisers, AREA, owners and promoters, sponsors, any RESTRICTED crews, any vets, personnel, rescue persons underwriters, consultants Inspectors, surveyors, event EVENT(S), premises end to conduct used premises lessees of or activities directions, evaluation losа control recommendations, In risk engage or Instructions who give and others at) directors, officers, purpos- for the thorn, employees, agents their and each regarding premises EVENT(S) UNDERSIGNED, representatives, personal THE "Reléaseos," LIABILITY,TO ALL FROM referred es herein assigns, DAMAGE, ON DEMANDS THEREFOR OR AND ANY CLAIMOR Iwlra, LOSS ANY AND ALL next of tdn FOR ARIS- THE IN DEATH OF UNDERSIGNED PROPERTY OR RESULTING THE PERSON OR OF INJURY TO ACCOUNT *15 OR OF RELEASEES THE THE WHETHER CAUSED BY NEGLIGENCE EVENT(S), TO OF OR RELATED THE ING OUT OTHERWISE. ANY them end each ot FROM AND HOLD HARMLESS Rotéaseos AND SAVE TO INDEMNIFY AGREES 3. HEREBY BY CAUSED or to the WHETHER DAMAGE, arising EVENT(S) Incur out of related LIABILITY, OR LOSS, they may COST OR OTHERWISE. OF THE RELEASEES THE NEGLIGENCE INJURY, OR DAMAGE OF DEATH PROPERTY FOR ANY RISK BODILY RESPONSIBILITY ASSUMES FULL A. HEREBY or olheiwtee. by OF RELEASEES whether caused the NEGLIGENCE EVENT(S) out of related arising risk of EVENTfS) OF VERY DANGEROUS and involve the THE ARE ACTIVITIES acknowledges'that THE S. HEREBY damage. Each THE UNDERSIGNED also injury property expressly acknowledge» and/or death and/or aerious PROCE- BY RESCUE OPERATIONS OR BE OR INCREASED NEGLIGENT MAY COMPOUNDED INJURIES RECEIVED OF THE RELEASEES. DURES Agreement Rtek entendí UatNty, and Waiver agrees Assumption Indemnity Bits Release a HEREBY Releasees, broad RESCUE OPERATIONS and Is Mandad be at INCLUDING NEGILGENT acts ot nagHgence Evontfs) arty por- In Is/are conducted and that K permitted laws the Province State which and Inclusive as (otea sha», Invalid, notv/tthstaraing, legal te lhat the balance continue tul and eflecL agreed It Is tion Itereof held LIABILITY, OF ASSUMPTION OF RISK AND INDEMNITY I READ THIS AND WAIVER AGREEMENT. HAVE RELEASE TERMS, I UP BY HAVE GIVEN SUBSTANTIAL RIGHTS SIGNING Fuav UNDERSTAND ITS UNDERSTAND THAT IT. VOLUNTARILYWITHOUT ANY ASSURANCE OR GUARANTEE HAVE IT FREELY AND INDUCEMENT. AND SIGNED A OF ALL ME MY SIGNATURE TO BE COMPLETE AND UNCONDITIONALRELEASE MADE TO AND INTEND BEING ALLOWED BY LAW. LIABILITYTO THE GREATEST EXTENT MUST ALL SECTION BE COMPLETED.

Case Details

Case Name: Holzer v. Dakota Speedway, Inc.
Court Name: South Dakota Supreme Court
Date Published: May 17, 2000
Citation: 610 N.W.2d 787
Docket Number: None
Court Abbreviation: S.D.
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