Section 7.16 Release of Future Liability

• Library: Settling Cases 2014

Missouri has long permitted the release in advance of future liability for ordinary negligence, whether in traditional release form or as exculpatory, indemnification, disclaimer, or immunity clauses in contracts.

Missouri courts have repeatedly rejected the argument that, insofar as private individuals and private interests are concerned, an agreement to exempt or exonerate parties from the consequences of their own negligence is against public policy. See:

• Rock Springs Realty, Inc. v. Waid,392 S.W.2d 270, 272 (Mo. 1965)

• Hornbeck v. All Am. Indoor Sports, Inc.,898 S.W.2d 717, 721 (Mo. App. W.D. 1995)

• Schaffer v. Prop. Evaluations, Inc.,854 S.W.2d 493, 495 (Mo. App. E.D. 1993),abrogated on other grounds by Purcell Tire & Rubber Co. v Exec. Beechcraft, Inc., 59 S.W.3d 505 (Mo. banc 2001)

The rationale lies within the basic contract principle that a party dealing with private interests may properly bargain for its exoneration from the consequences of its ordinary negligence in arriving at the meeting of minds necessary to the formulation of a contract. Liberty Fin. Mgmt. Corp. v. Beneficial Data Processing Corp.,670 S.W.2d 40, 48 (Mo. App. E.D. 1984); see also 6 ARTHUR L. CORBIN, CORBIN ON CONTRACTS § 1472 (1962).

Future negligence claims can also be waived by contract. Purcell Tire & Rubber Co., 59 S.W.3d at 510. A controversy does not need to exist at the time that a release agreement is entered. Id. Agreements that relieve a party from future negligence are to be strictly construed against the party seeking...