Hanks v. Sawtelle Rentals, Inc.

• Decision Date: 23 August 1999
• Docket Number: No. 24176.,24176.
• Citation: 133 Idaho 199,984 P.2d 122
• Parties: Diane Hanks and Clifford HANKS, husband and wife, Plaintiffs-Respondents, v. SAWTELLE RENTALS, INC., an Idaho corporation and Joseph Williams, Defendants-Appellants.
• Court: Idaho Supreme Court

984 P.2d 122

133 Idaho 199

Diane Hanks and Clifford HANKS, husband and wife, Plaintiffs-Respondents, v. SAWTELLE RENTALS, INC., an Idaho corporation and Joseph Williams, Defendants-Appellants.

No. 24176.

Supreme Court of Idaho, Boise, May 1999 Term.

August 23, 1999.

Johnson Olson, Chtd., Pocatello, for appellants. L. Charles Johnson argued.

Cox, Ohman & Brandstetter, Chtd., Idaho Falls, for respondents. John M. Ohman argued.

TROUT, Chief Justice.

Diane Hanks (Diane), a passenger, was injured in a collision involving two snowmachines—one driven by her husband, Clifford Hanks (Clifford), and the other by Joseph Williams (Williams), an employee of Sawtelle Rentals, Inc. (Sawtelle). Sawtelle and Williams appeal from a district judge's decision awarding Diane $450,000 in damages.

I. FACTUAL AND PROCEDURAL HISTORY

In March 1995, Clifford and Diane Hanks (the Hanks) rented two snowmachines from Sawtelle, a licensed Idaho outfitter. Clifford signed a rental agreement that included a "Release and Waiver" provision. Diane, however, neither signed nor saw the agreement. Other than the basic operating information printed on the rental form, Sawtelle provided no additional instructions or training.

After some use, Clifford's snowmachine stopped operating. Clifford and Diane rode "double" to a nearby cafe to contact Sawtelle. Following that conversation Sawtelle dispatched Williams to recover the disabled vehicle. The Hanks, with Sawtelle's approval, chose to return toward the location of the disabled snowmachine riding double on Diane's snowmachine. The Hanks and Williams collided on a blind corner. The Hanks, with Clifford driving, were traveling approximately twenty to twenty-five miles per hour. Williams, an experienced rider, was traveling approximately thirty-five miles per hour. While the record reflects that both drivers attempted evasive maneuvers, the two vehicles glanced off each other ejecting and severely injuring Diane.

Seeking recovery for Diane's medical expenses, pain and suffering, and lost income, the Hanks filed an action against Sawtelle and Williams. Sawtelle and Williams filed a counterclaim seeking to recover for the damage to the snowmachines and to recover for Williams' personal injuries. Following numerous pretrial motions, the case was tried to the district judge without a jury. Addressing the issue of whether Sawtelle was an "outfitter" and Williams a "guide" under the Idaho Recreation Act, the district judge concluded that the only relationship between the Hanks and Sawtelle was that of a lessor and lessee. Consequently, the liability limiting provisions for guides and outfitters found in I.C. § 6-1206 did not apply. The district judge also found that the waiver and release provisions agreed to by Clifford did not bind or obligate Diane since she was not a party to the agreement.

The district judge ultimately concluded that Williams and Clifford were responsible for the accident. Both negligently operated their vehicles violating I.C. § 67-7110.¹ The judge apportioned sixty percent of the fault to Williams and forty percent to Clifford. The judge then awarded $450,000 in damages—$50,000 for Diane's medical bills, $150,000 for her leg injury, and $250,000 for losses attributable to Diane's brain injury. Finding insufficient evidence, the judge refused to award damages for future medical bills or future lost wages. Sawtelle and Williams appeal.

II. DISCUSSION

Sawtelle first complains that the district judge erroneously concluded that Sawtelle was not an outfitter, and thus, its liability was not limited under the Idaho Recreation Act. Second, Sawtelle and Williams argue that the district judge erred in concluding that the waiver and release provision signed by Clifford did not prevent Diane from recovering. Despite Sawtelle's status and the provisions contained in the rental agreement, Sawtelle and Williams argue that the district judge's finding of negligence was clearly erroneous. The two also argue that there was insufficient evidence to support a conclusion that Diane sustained a traumatic brain injury. Finally, Sawtelle and Williams complain that the $450,000 damage award was excessive and unsupported.

A. Sawtelle's Status.

Sawtelle challenges the district judge's conclusion that the relationship between Sawtelle and the Hanks was that of lessor/lessee and that under the facts of the case, Sawtelle was not acting as an outfitter as defined under I.C. § 36-2102(b). Although the Hanks' underlying theory for recovery is negligence, whether Idaho law treats Sawtelle as an outfitter and the Hanks as participants determines the scope of Sawtelle's legal obligations to the Hanks. This issue presents a question of law. In reviewing questions of law this Court exercises free review and is not bound by the conclusions of the trial court, but may draw its own conclusions from the facts found. Mutual of Enumclaw v. Box, 127 Idaho 851, 852, 908 P.2d 153, 154 (1995).

Idaho Code § 6-1206 limits the liability of licensed "guides" and "outfitters" to "participants." A licensed outfitter, acting "in the course of his employment," can only be held liable to a "participant" if the outfitter breached a duty imposed by "chapter 21, title 36, Idaho Code, or by the rules of the Idaho outfitters and guides board, [IDAPA 025.01.01] or by the duties placed on such outfitter or guide by the provisions" of chapter 12, title 6, Idaho Code. I.C. § 6-1206. Idaho Code § 36-2102 defines an "outfitter" as:

any person who, while engaging in any of the acts enumerated herein in any manner: (1) advertises or otherwise holds himself out to the public for hire; (2) provides facilities and services for consideration; and (3) maintains, leases, or otherwise uses equipment or accommodations for compensation for the conduct of outdoor recreational activities....

I.C. § 36-2102(b). Idaho law defines "participant" as "any person using the services of an outfitter or guide...." I.C. § 6-1202(c).

The district judge concluded that Sawtelle was not an outfitter in this case because it did not provide a "service," and consequently, § 6-1206 did not apply. Section 6-1206 operates to limit the liability of a licensed outfitter, acting in the course of its employment, to a "participant." The record reflects that Sawtelle was a licensed outfitter at the time of the accident and, arguably, was acting in the course of its employment by retrieving the disabled snowmachine. However, Diane cannot be characterized as a "participant" as she did not receive "services" from Sawtelle.

As stated above, Idaho law defines an outfitter as any person who (1) holds himself out for hire, (2) provides facilities and services for consideration, and (3) maintains or leases equipment for compensation. As is evident from the definition, the provision of services is separate and distinct from leasing equipment. Moreover, a guide, as defined by the code, is an individual employed by an outfitter to furnish personal services. I.C. § 36-2102(c). All Sawtelle did here was lease equipment. Fitting the Hanks for the rented clothing and helmets was merely incidental to leasing the equipment. Further, Sawtelle's decision to retrieve the disabled vehicle cannot be said to be a service to the Hanks. Consequently, I.C. § 6-1206 does not operate to limit Sawtelle's liability to Diane and the district judge was correct in so holding.

B. The Waiver and Release Provision.

The district judge concluded that the waiver and release provision of the rental agreement signed by Clifford prevented any recovery on Clifford's part, but because Diane did not sign the agreement, it did not apply to her. The interpretation and legal effect of a contract are questions of law over which this Court exercises free review. First Security Bank of Idaho v. Murphy, 131 Idaho 787, 791, 964 P.2d 654, 658 (1998).

Sawtelle and Williams argue that the district judge erred in reaching this conclusion because under Idaho community property law one spouse can contractually bind the community. Nonetheless, the judge, adopting the Hanks position, correctly reasoned that a spouse's health and well-being is personal to that spouse. Damages recovered for personal injuries remain the separate property of the injured spouse. See, e.g., Rogers v. Yellowstone Park Co., 97 Idaho 14, 20, 539 P.2d 566, 572 (1975). Assuming the waiver and release provision is legally enforceable, Clifford's signature cannot bind Diane's separate interests based solely upon Clifford's status as Diane's husband.

C. William's Negligence.

The district judge concluded that Williams was driving his snowmachine in violation of I.C. §§ 67-7110(1) and (3). The judge stated that:

Mr. Williams, an expert snowmobiler, fully expected to meet oncoming snowmachines at every corner, knew the white elephant corner was "sharp and bad" but still he approached the corner at a speed in excess of that which allowed him to safely pass oncoming novice riders.

Sawtelle and Williams complain that this finding is unsupported. To establish a claim for negligence, a plaintiff must prove:

(1) a duty, recognized by law, requiring the defendant to conform to a certain standard of conduct; (2) a breach of duty; (3) a causal connection between the defendant's conduct and the resulting injury; and (4) actual loss or damage.

Orthman v. Idaho Power Co., 126 Idaho 960, 962, 895 P.2d 561, 563 (1995). The question of breach of a duty, as disputed here by Sawtelle and Williams, requires factual findings which this Court will not disturb if supported by substantial and competent evidence. See Rife v. Long, 127 Idaho 841, 851, 908 P.2d 143, 153 (1995).

There is no dispute that Williams, when operating his snowmachine, had a duty to exercise ordinary care to "prevent unreasonable, foreseeable risks of harm to others." Sharp v. W.H. Moore Inc., 118 Idaho 297, 300, 796 P.2d 506, 509 (1990); see also I.C. § 67-7110. There is also no dispute that...