BATTAGLIA, J.
This case requires us to consider the enforceability of a clause, which contained both an exculpatory provision and indemnification language, in an agreement executed by a parent on behalf of his minor son permitting his son's use of a free supervised play area called the "Incredible Kids' Club" (Kids' Club) offered by BJ's Wholesale Club, Inc. (BJ's), a commercial wholesale retail center at its location in Owings Mills, Maryland. The Kids' Club contained a number of different amusement items, including, for instance, a plastic apparatus called "Harry the Hippo" for children to use while their parents shopped.
To use the Kids' Club, BJ's requires parents to sign an agreement, entitled "BJ's Incredible Kids' Club Rules" mandating usage restrictions
Immediately below in the same paragraph is found an indemnification clause:
This language appears in smaller font than the remaining agreement, but is printed in bold letters just above the line for the parent or guardian's signature.
On July 17, 2005, Russell Rosen executed the "BJ's Incredible Kids' Club Rules," inclusive of both the exculpation and indemnification clauses, on behalf of his three minor children, including his son, Ephraim Rosen. Approximately fifteen months later, Beily Rosen, his wife, went shopping at the BJ's' Owings Mills location and dropped off then five-year old Ephraim at the Kids' Club where, according to the Rosens' Complaint filed in the Circuit Court for Baltimore County, Ephraim was injured:
The Complaint plead a cause of action in negligence, asserting that:
BJ's filed an Answer containing a general denial; after the parties began discovery, BJ's filed a counterclaim against the Rosens, alleging breach of contract for failing to indemnify, defend, and hold BJ's harmless pursuant to the indemnification clause.
Thereafter, BJ's filed a motion for summary judgment under Rule 2-501
After holding a hearing, Judge Thomas J. Bollinger, Sr., of the Circuit Court for Baltimore County granted summary judgment for BJ's:
Id. at 532 [644 A.2d 522]. "The ultimate determination of what constitutes the public interest must be made considering the totality of the circumstances of any given case against the backdrop of current societal expectations." Id. at 535 [644 A.2d 522].
(alteration in original).
In so doing, the Court of Special Appeals struck down the exculpation and indemnification clauses, acknowledging that while our decision in Wolf validated exculpatory clauses, "[t]here are circumstances... under which the public interest will not permit an exculpatory clause in a contract[.]" Id. at 716, 51 A.3d at 105, quoting Wolf, 335 Md. at 531, 644 A.2d 522 (alterations in original). Our intermediate appellate court explored authority from our sister states such as that from New Jersey, Hojnowski v. Vans Skate Park, 187 N.J. 323, 901 A.2d 381 (2006), and Florida, Kirton v. Fields, 997 So.2d 349
BJ's petitioned this Court for a writ of certiorari, which we granted, to consider:
BJ's Wholesale Club v. Rosen, 429 Md. 528, 56 A.3d 1241 (2012). All of these questions essentially ask us to review the trial court's decision de novo, as only matters of law present themselves. See, e.g., Uninsured Employers' Fund v. Danner, 388 Md. 649, 658, 882 A.2d 271, 277 (2005); Johnson v. Mayor & City Council of Baltimore City, 387 Md. 1, 6, 874 A.2d 439, 442 (2005). These questions, moreover, require us to consider the contours of our decision in Wolf, which held that an exculpatory agreement will be permitted except in certain circumstances, including "in transactions affecting the public interest." Wolf, 335 Md. at 531-32, 644 A.2d at 525-26.
Initially, BJ's argues that we should refrain from opining on the enforcement of an exculpatory clause against a minor child in the absence of any legislation prohibiting such clauses, arguing that "declaration of public policy [is] best left to the Legislature." For this proposition, BJ's counsel relied at oral argument on our recent decision in Warr v. JMGM Group, LLC, 433 Md. 170, 70 A.3d 347(2013), in which we declined to adopt dram shop liability.
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). By entering into an exculpatory agreement, "the parties expressly... agree in advance that the defendant is under no obligation of care for the benefit of the plaintiff, and shall not be liable for the consequences of conduct which would otherwise be negligent." Wolf, 335 Md. at 531, 644 A.2d at 525, quoting W. Page Keeton, et al., Prosser and Keeton on the Law of Torts, § 68, at 482 (5th ed.1984) and citing Restatement (Second) of Contracts § 195 (1981). We have had occasion to address the validity of exculpatory clauses most recently in Wolf,
In Wolf, after articulating the general acceptance of exculpatory clauses, we elucidated various exceptions to their validity. Persuaded by the rigor of Winterstein v. Wilcom, 16 Md.App. 130, 293 A.2d 821(1972), we recognized that there were circumstances in which enforcement of an exculpatory clause could be precluded, the first two being:
Wolf, 335 Md. at 531, 644 A.2d at 526. The third circumstance precluding enforceability was when a transaction affects the public interest:
Id. at 531-32, 644 A.2d at 525-26.
"Transactions affecting public interest," under Wolf encompasses three distinct categories, two of which are not relevant here, because they were not relied upon by Judge Bollinger in reaching his decision in this matter, those being: public service obligations, see, e.g., Collins v. Virginia Power & Elec. Co., 204 N.C. 320, 168 S.E. 500, 504 (1933) (invalidating an exculpatory agreement between a customer and a telegraph company); Bowman & Bull Co. v. Postal Tel.-Cable Co., 290 Ill. 155, 124 N.E. 851, 852 (1919) (invalidating an exculpatory clause between a customer and a telegraph-service provider); Reeder v. W. Gas & Power Co., 42 Wn.2d 542, 256 P.2d 825 (1953) (invalidating an exculpatory clause between a customer and gas-service provider); and other transactions "so important to the public good that an exculpatory clause would be patently offensive." Wolf, 335 Md. at 532, 644 A.2d at 526 (citation and quotations omitted); e.g., Wartsila NSD N. Am., Inc. v. Hill Int'l, Inc., 530 F.3d 269 (3d Cir.2008) (applying Maryland law and holding that an exculpatory clause in an agreement between a construction consulting firm and an engineering firm was enforceable because construction consulting is not essential to the public good); Seigneur v. Nat'l Fitness Inst., Inc., 132 Md.App. 271, 284, 752 A.2d 631, 637 (2000) (holding that an exculpatory agreement between a customer and a health club was enforceable because services provided by a health club are "not ... of great public importance nor of practical necessity").
Judge Bollinger, rather, relied upon a final catch-all category of the public interest exception to the validity of exculpatory clause, which he recognized was not easily defined, opining that: "While ... the Maryland Court of Appeals has intended to create a public interest exception, without further guidance, [I am] not capable of evaluating `the totality of the circumstances' against `a backdrop of current societal expectations.'" In Wolf, we attempted to define the contours of this category of the public interest exception by dissecting Winterstein, in which the Court of Special Appeals had adopted a six-factor test established by the Supreme Court of California in the case of Tunkl v. Regents of University of California, 60 Cal.2d 92, 32 Cal.Rptr. 33, 383 P.2d 441, 444-46 (1963), which held that a transaction affects the public interest when:
Id. 32 Cal.Rptr. 33, 383 P.2d at 445-46 (footnotes omitted). We declined, however, to adopt the Tunkl factors, determining that the "fluid nature of the public interest" renders strict reliance on "the presence or absence of six fixed factors" arbitrary and inappropriate. We recognized, instead, that while the factors may be persuasive to evaluate the public interest, "[t]he ultimate determination of what constitutes the public interest must be made considering the totality of the circumstances of any given case against the backdrop of current societal expectations." Wolf, 335 Md. at 535, 644 A.2d at 527.
The concept of "societal expectations," then, was undefined in Wolf, as Judge Bollinger noted, as he grappled with its application in this case. Our decision in declining to offer a precise definition, however, was based on our recognition that the "public interest" is an amorphous concept not easily defined. Nevertheless, we agree with the parties and the Court of Special Appeals that, in discerning societal expectations, we should look to relevant statutory and common law. See Porterfield v. Mascari II, Inc., 374 Md. 402, 427, 823 A.2d 590, 605 (2003); Maryland Nat. Bank v. Comptroller of Treasury, 264 Md. 536, 549, 287 A.2d 291, 298 (1972).
Section 5-203(b) of the Family Law Article, Maryland Code (1974, 2012 Repl.Vol.) defines globally the role of a parent, providing that "the parents of a minor child... are ... responsible for the child's support, care, nurture, welfare, and education[.]" Closely associated with these obligations and duties is our long-standing recognition that "parents are presumed to act in their children's best interests," Boswell v. Boswell, 352 Md. 204, 240, 721 A.2d 662, 679 (1998), which is evinced throughout our cases, including those involving custody, visitation, and adoption disputes. There are, thus, clear societal expectations set forth in the law that parents should make decisions pertaining to their children's welfare, and that those decisions are generally in the child's best interest.
The societal expectation that parents should make significant decisions pertaining to a child's welfare is manifest in statutes that enable parents to exercise their authority on behalf of their minor child in the most important aspects of a child's life, including significant physical and mental health decisions. Parents are empowered, on behalf of their children to: consent to medical treatment, see Section 20-102 of the Health-General Article, Maryland Code (2000, 2009 Repl.Vol., 2013 Supp.); consent to having their children give blood, Section 20-101(b) of the Health-General Article, Maryland Code (2000, 2009 Repl. Vol.); consent to the use of a tanning device by their child,
In addition to empowering parents to make significant health decisions, the General Assembly also has directly enabled parents on behalf of a child to make the most significant decisions pertaining to a child's education and employment. With respect to education, parents may: choose to home school their children, Section 7-301(a)(1) of the Education Article, Maryland Code (1978, 2008 Repl.Vol., 2013 Supp.); and choose to defer compulsory schooling for one year if a parent determines that the child is not mature enough to begin schooling. Section 7-301(a)(2) of the Education Article, Maryland Code (1978, 2008 Repl.Vol., 2013 Supp.). Additionally, Section 7-305(c) of the Education Article, Maryland Code (1978, 2008 Repl. Vol., 2013 Supp.) mandates that a parent meet with a school superintendent in the event that a child is suspended for more than ten days or expelled from school. With respect to a child's employment, a child may not work more than is statutorily permitted without a parent giving written consent, Section 3-211(b)(1) of the Labor and Employment Article, Maryland Code (1999, 2008 Repl.Vol.); and if the minor child is working for the parent, the wage and hour restrictions are not applicable, thereby leaving it to the parent's discretion as to how much the child should work. Maryland Code (1999, 2008 Repl. Vol.), Section 3-403(a)(7) of the Labor and Employment Article.
Parents also are empowered to permit a fifteen to seventeen-year old child to marry, see Section 2-301 of the Family Law Article, Maryland Code (1999, 2012 Repl. Vol., 2013 Supp.); to use corporal punishment to discipline their children, Section 4-501(b)(2) of the Family Law Article, Maryland Code (1999, 2012 Repl.Vol.); to apply on behalf of a minor child to the "Address Confidentiality Program," a program designed to ensure that domestic violence victims addresses are kept confidential and from their perpetrators, Section 4-522(a)(2) of the Family Law Article, Maryland Code (1999, 2012 Repl.Vol.); to bring an action on behalf of their minor child parent for unpaid support payments under the Maryland Uniform Interstate Support Act, Section 10-314 of the Family Law Article, Maryland Code (1999, 2012 Repl. Vol.); and to consent to a child obtaining a hunting license. Section 10-301(h) of the Natural Resources Article, Maryland Code (2000, 2012 Repl.Vol.).
From this brief survey of various pieces of legislation, it is clear that parents are empowered to make significant decisions on behalf of their children. The Rosens, though, have asserted that there are significant limitations on parental decision-making apparent in legislation, including Section 5-502(b)(1) of the Family Law Article, Maryland Code (1999, 2012 Repl. Vol.), containing a statement that it is the State's policy "to protect minor children whose care has been relinquished to others," which appears as part of a large regulatory scheme applicable to child and foster care facilities. The policy statement, however, merely recognizes the obvious, that children are vulnerable and are entitled to protection. It does not suggest
The Rosens also have advanced a number of cases that they assert reflect limitations on parental decision-making, all of which, however, are inapposite to define societal expectations with respect to a parent's role in contracting on behalf of her minor child. To support their argument, the Rosens assert first the ability of a minor to disaffirm a contract entered into with an adult, as determined in Schmidt v. Prince George's Hospital, 366 Md. 535, 553, 784 A.2d 1112, 1122 (2001); the inability to defend on the basis of contributory negligence against children as young as five, as opined on in Taylor v. Armiger, 277 Md. 638, 648-49, 358 A.2d 883, 888 (1976); and the prohibition against a parent abdicating her parental responsibilities by contracting away her obligation to support her minor child, as discussed in Geramifar v. Geramifar, 113 Md.App. 495, 503, 688 A.2d 475, 478 (1997). None of these cases, however, involve a parent acting on behalf of a minor child, and we, therefore, glean no limitations on parental authority from these decisions.
The Rosens, likewise, posit McCormack v. Board of Education of Baltimore County, 158 Md.App. 292, 310, 857 A.2d 159, 169 (2004), as a limitation on parental exculpation, in which the Court of Special Appeals opined that a parent is permitted to assert or waive the psychologist-patient privilege on behalf of her child absent a substantial conflict of interest with the child. McCormack, too, has no bearing on this matter; it does not address a parent's right to contract on behalf of her child. The Rosens also rely upon Grimes v. Kennedy Krieger Institute, Inc., 366 Md. 29, 782 A.2d 807 (2001), a case in which we considered whether it was appropriate for children to be used in a potentially hazardous nontherapeutic research study; as we made clear in Grimes, though, "[t]he issue in these specific contested cases does not relate primarily to the authority of the parent, but to the procedures of [the researchers] and similar entities that may be involved in such health-related studies." Id. at 104, 782 A.2d at 852. The Court of Special Appeals did not rely on these decisions in reaching its decision, nor de we find them persuasive; these decisions do not impose any limitations on a parent's right to contract on behalf of her child.
With specific reference to a child's cause of action and parental authority, Section 6-405 of the Courts and Judicial Proceedings Article, Maryland Code (1974, 2013 Repl. Vol.),
The language of Section 6-405(a) of the Courts and Judicial Proceedings Article, which permits a parent to settle a child's existing claims without judicial interference, notably, is in stark contrast to other states' statutes and rules that require judicial oversight to settle a child's claim, which form the foundation for cases upon which the cases posited by the Rosens rely. See, e.g., Cooper v. Aspen Skiing Co., 48 P.3d 1229, 1233 (Colo.2002) (noting that pursuant to Colorado statutory law a child's claim can be settled only by court approval or by a conservator,
The Rosens contend, alternatively, that Section 6-405 is without relevance, arguing that a prospective waiver of a negligence claim as exculpation is "fundamentally different" from a release of an existing claim; our intermediate appellate court similarly opined that unlike a release of an existing claim, an exculpatory clause that prospectively releases a party from liability for negligence "may remove an important incentive to act with reasonable care." Rosen, 206 Md.App. at 724, 51 A.3d at 110-11, quoting Hawkins, 37 P.3d at 1066. The intermediate appellate court also noted other differences between the two types of releases that, ostensibly, justified their limiting parental authority to prospectively waive a claim for negligence:
Id. at 724-25, 51 A.3d at 110-11, quoting Hawkins, 37 P.3d at 1066.
The policy dichotomy proscribed, however, by the Rosens and the Court of Special Appeals has at its core stereotypes that warrant further exploration by the Legislature, rather than that which should be relied upon in judicial decision-making. The preconceptions utilized are pro hac differentiation
The Rosens assert, however, that parental decision-making with respect to a minor child's tort claim is limited by Sections 13-401 et seq. of the Estates and Trusts Article, Maryland Code (2001, 2011 Repl. Vol.), requiring, inter alia, that tort awards recovered by a minor exceeding $5,000 be placed in trust, and moreover, limits access to those funds for limited reasons, such as educational or medical needs. Section 13-402 of the Estates and Trusts Article clearly states, in reference to Sections 13-401 et seq., that "judgment in tort should be preserved for the benefit of the minor," limiting the parent's use of the settlement or judgment money, but not the authority to terminate a claim.
The Rosens similarly advance Section 5-201 of the Courts and Judicial Proceedings
Now that we have explored societal expectations as discerned by statutory and common law, we turn to the juxtaposition of the instant facts against those expectations. This case involves the decision made by Mr. Rosen to sign an exculpatory agreement on his behalf and that of his children. Our review of our statutes and cases reflect a societal expectation that a parent's decision-making is not limited. The Court of Special Appeals, likewise, did not assert any limitation on a parent's right to prospectively waive a minor child's tort claim. We conclude, therefore, that Mr. Rosen's execution of an exculpatory agreement on behalf of Ephraim to allow him to use the Kids' Club was not a transaction affecting the public interest within the meaning of Wolf, which otherwise would have impugned the effect of the agreement.
The Court of Special Appeals's decision, however, rested upon two other considerations aside from the Wolf decision. The intermediate appellate court rooted its opinion on a perceived distinction between commercial and non-commercial enterprises, opining that "because commercial enterprises `derive economic benefit from' the provision of their services, `they are better able to bear the costs associated with injures than the children or their families,'" because they could better afford to insure against a risk of loss than a non-commercial entity. Rosen, 206 Md. App. at 728, 51 A.3d at 112, quoting Hojnowski, 901 A.2d at 381. The Rosens have likewise posited this argument, contending that "BJ's, a profitable company, can insure against injuries at its Play Center." The distinction between commercial and non-commercial entities, however, is without support in our jurisprudence; we have upheld the legitimacy of exculpatory agreements in commercial settings against adults and the policy arguments upon which we have validated or invalidated exculpatory clauses know no such distinction. The Court of Special Appeals opined, however, that "a minor child is far less capable of looking out for his own safety and welfare than an adult, a difference which, in [its] view, justifies a more protective rule for children." Rosen, 206 Md.App. at 728, citing Kirton v. Fields, 997 So.2d 349, 359-60 (Fla.2008) (Anstead, J., concurring).
Whether an agreement prospectively waiving a claim for negligence executed by a parent on behalf of a child should be invalidated because a commercial entity may better be able to bear the risk of loss than a non-commercial entity by purchasing insurance, moreover, is for a matter of legislative fact-finding as well as discussion of the relative balance sheets of a commercial entity and of a self-insurer, such as the State, or a religious organization, such as the Catholic Church, for example. The inherent difficultly of this line drawing was elucidated by Justice Charles Wells of the Supreme Court of Florida in his dissent in Kirton v. Fields:
Kirton, 997 So.2d at 363 (Wells, J., dissenting). As a result, we do not adopt the commercial, non-commercial dichotomy posited by the Court of Special Appeals.
Rosen, 206 Md.App. at 727, 51 A.3d at 112, citing Wolf, 335 Md. at 531, 644 A.2d 522. The application of the parens patriae doctrine has generally been invoked only in proceedings where parental rights have been abrogated, pursuant to a statutory scheme, as in CINA cases.
We have also applied the parens patriae doctrine in cases in which we have observed that the juvenile delinquency systems
We have, thus, never applied parens patriae to invalidate, undermine, or restrict a decision, such as the instant one, made by a parent on behalf of her child in the course of the parenting role. We conclude, therefore, that the Court of Special Appeals erred by invoking the State's parens patriae authority to invalidate the exculpatory clause in the Kids' Club Rules agreement.
ADKINS and McDONALD, JJ., dissent.
ADKINS, J., dissenting, in which McDONALD, J. joins.
The Majority holds that exculpatory agreements in which parents prospectively waive their child's legal claims arising from a commercial entity's negligence are valid. Relying on Wolf v. Ford, 335 Md. 525, 535, 644 A.2d 522, 527 (1994), the Majority bases its decision on a societal expectation, enunciated by Maryland statutes and common law, that parents have the authority to make decisions concerning their child's welfare. In adopting a position held by a minority of states, the Majority has ignored the significant public policy interests in invalidating these prospective exculpatory agreements when a commercial entity contracts with a consumer. Such exculpatory agreements are directly adverse to the interests of minors, and ultimately shift the costs of commercial entities' negligence to families and the State. For these reasons, I respectfully dissent.
In Wolf v. Ford, this Court hoped to promote freedom of contract by announcing that we would generally enforce exculpatory clauses. 335 Md. at 535, 644 A.2d at 527. Nevertheless, we recognized three exceptions to enforcement when exculpatory agreements: (1) covered extreme forms of negligence; (2) were a result of unequal bargaining power; or, (3) covered transactions that affected the public interest. Wolf, 335 Md. at 531-32, 644 A.2d at 525-26. Concerning the third exception, we declined to adopt the test followed by other states and the federal circuit for when a transaction involves the public interest. Wolf, 335 Md. at 535, 644 A.2d at 527. Instead, we announced a totality of the circumstances test based on societal expectations. Id. ("The ultimate determination of what constitutes the public interest must be made considering the totality of the circumstances of any given case against the backdrop of current societal expectations.").
We did not take the opportunity to define "societal expectations" in Wolf. Although the appropriate method for defining the legal concept of "societal expectations" is debatable, I do not quarrel with the Majority's conclusion that "parents are empowered to make significant decisions on behalf of their children." Maj. Op. at 730, 80 A.3d at 354.
Yet when dealing with children, we must keep in mind that circuit courts act as parens patriae, and parental authority is
Although Maryland has not considered the enforceability of exculpatory agreements such as these, many other jurisdictions have done so, and the majority have held them unenforceable. See Galloway v. State, 790 N.W.2d 252, 258 (Iowa 2010) ("Like a clear majority of other courts deciding such releases are unenforceable, we believe the strong policy in favor of protecting children must trump any competing interest of parents and tortfeasors in their freedom to contractually nullify a minor child's personal injury claim before an injury occurs."); see also Kirton v. Fields, 997 So.2d 349, 356 (Fla.2008) ("In holding that pre-injury releases executed by parents on behalf of minor children are unenforceable for participation in commercial activities, we are in agreement with the majority of other jurisdictions."), superseded by statute, Fla. Stat. Ann. § 744.301 (West); Woodman v. Kera, LLC, 486 Mich. 228, 785 N.W.2d 1 (2010) (pre-injury waiver of liability of commercial children's play facility unenforceable); Doyle v. Bowdoin College, 403 A.2d 1206, 1208 n. 3 (Me.1979) (parent or guardian cannot release college and directors of summer hockey clinic); Hawkins v. Peart, 37 P.3d 1062 (Utah 2001) (parent's release and indemnification of commercial trail guide service violates public policy), superseded by statute Utah Code Ann.1953 § 78B-4-203 as recognized in Penunuri v. Sundance Partners, Ltd., 301 P.3d 984, 990 n. 43 (Utah 2013); see also 75 A.L.R.6th 1 (originally published in 2012) ("The general rule has been stated throughout the years as follows: generally, a parent cannot compromise or release a minor child's cause of action absent statutory authority."). The Court of Special Appeals aptly describes such exculpatory clauses as promoting a "misalignment of incentives," and points out that commercial enterprises are in a better position not only to control their premises and employees, but also to carry insurance against liability for negligence. Rosen v. BJ's Wholesale Club, Inc., 206 Md.App. 708, 725-28, 51 A.3d 100, 111-12 (2012).
In rejecting this majority rule, the Majority places heavy weight on a Maryland statute that authorizes a parent to terminate litigation on behalf of their minor children. Section 6-405(a) of the Courts and Judicial Proceedings Article ("CJP"), provides: "[a]ny action ... brought by a next friend for the benefit of a minor may be settled by the next friend." Md.Code (1973, 2013 Repl.Vol.). The majority reasons that because Maryland legislation has given parents the power to settle lawsuits
I would not extrapolate from CJP § 6-405, as the Majority does, that the General Assembly created a policy that means that a parent can release from all liability a business that promises to care for their children in return for their shopping dollars. Section 6-405 is legislation that promotes the settlement of lawsuits, a longstanding public policy goal. See Chertkof v. Harry C. Weiskittel Co., 251 Md. 544, 550, 248 A.2d 373, 377 (1968) ("Courts look with favor upon the compromise or settlement of law suits in the interest of efficient and economical administration of justice and the lessening of friction and acrimony."). But unlike pre-injury exculpatory clauses, settlement of lawsuits resolves only past conduct, and has little to no impact on an organization's incentive to maintain safe practices and safe premises. In objectively examining the terms of CJP § 6-405, we have no reason to think that the legislature also considered and rejected as unimportant the negative ramifications of parents handing over the care of their children, and giving the caretaker immunity from negligence. In deciding whether businesses who take responsibility for children can immunize themselves from liability for negligence, we should not rest on CJP § 6-405 to delineate policy. Rather, we should note the absence of any legislation authorizing parents to sign pre-injury releases for their children. In addition to their fundamental rights to raise their children, parents have been given various rights by statute, but never has the legislature authorized them to execute this type of release.
When the Wolf test is properly applied, we look to the totality of the public interests touched by exculpatory clauses. Wolf, 335 Md. at 535, 644 A.2d at 527. Parents are signing away their child's legal right without knowing what injury will befall their child, without equal bargaining strength and without the opportunity to negotiate. Id. In cases like this, where the exculpatory clause is signed as part of a membership agreement at a shopping center, parents may not even be fully cognizant of the decision they are making. Hojnowski
If the business entity's negligence leads to injury of a child, the burden of dealing with the aftermath shifts from the responsible tortfeasor to the backs of young families in Maryland, and potentially, the State itself. The Majority does not address this concern, or identify it as a policy interest that should factor into its totality of the circumstances test. In this case, five-year-old Ephraim Rosen allegedly suffered serious injury when he fell off the "Hippo" play apparatus, onto a concrete floor covered only by thin carpet, without the thick foam padding located in most of the play area. As a result, he required emergency transportation and a craniectomy. Assuming the truth of the allegations, the burden for paying for this medical care has shifted from the negligent party, who is in the best position to insure against its negligence, to the victim, or perhaps the hospital, or a governmental entity.
The Majority worries that holding this exculpatory clause unenforceable would negatively impact non-profit entities who provide services for children, and that recognizing an exception for commercial entities would lead to inscrutable line-drawing issues. Maj. Op. at 738-41, 80 A.3d at 359-61. Relying on a dissenting opinion in Kirton, 997 So.2d at 363, the Majority posits that the line between commercial and non-commercial entities will be difficult to draw. Maj. Op. at 739-41, 80 A.3d at 360-61. I do not share these misgivings, because I believe we sit to draw such lines. I am confident that we could do so in a principled manner.
Finally, although the question is a closer one, I agree with the Court of Special Appeals that the same public policy interests that render such exculpatory clauses unenforceable apply with equal force to the indemnification clause. Undoubtedly, the same public policy interests concerning cost-shifting apply. Moreover, the parens patriae interest is meant to afford "protection in the law to the rights of those who are unable effectively to protect those rights themselves." Childress v. Madison County, 777 S.W.2d 1, 7 (Tenn.Ct.App. 1989). And the same issues that prevent a parent from adequately protecting their children in signing the exculpatory clause — namely, the unequal bargaining position and inability to negotiate — are at play when signing the indemnification clause. I agree with our intermediate court that to hold otherwise "would be contradictory [and] ... effectively undercut a minor's rights to sue by allowing indemnity clauses that make such suits for all realistic purposes unlikely." Rosen v. BJ's Wholesale Club, Inc., 206 Md.App. 708, 732, 51 A.3d 100, 115 (citing Cooper v. Aspen Skiing Co., 48 P.3d 1229, 1237 (Colo.2002)).
Judge McDONALD authorizes me to state that he shares the views set forth in this dissenting opinion.
(f)
Md.Code (1974, 2013 Repl. Vol), § 6-405 of the Courts & Judicial Proceedings Article. All references to Section 6-405 of the Courts and Judicial Proceedings Article ("Section 6-405") throughout are to Maryland Code (1974, 2013 Repl. Vol.), unless otherwise noted.
Hojnowski v. Vans Skate Park, 187 N.J. 323, 901 A.2d 381, 396 (2006) (LaVecchia, J., dissenting). These differences, among others, may justify a more protective rule when a parent settles an existing claim, rather than when she executes a prospective waiver of negligence:
Angeline Purdy, Note, Scott v. Pacific West Mountain Resort: Erroneously Invalidating Parental Releases of A Minor's Future Claim, 68 Wash. L.Rev. 457, 474 (1993) (footnotes omitted).
Wentzel v. Montgomery Gen. Hosp., Inc., 293 Md. 685, 702, 447 A.2d 1244, 1253 (1982) (citations omitted); see also In re Adoption/Guardianship of Victor A., 386 Md. 288, 300-01, 872 A.2d 662, 669 (2005) ("A parent's right to raise his or her children, however, is not beyond limitation, and there may be countervailing considerations that the State, pursuant to its parens patriae authority, must protect.").