Schillachi v. Flying Dutchman Motorcycle Club

• Decision Date: 19 October 1990
• Docket Number: Civ. A. No. 88-7186.
• Citation: 751 F. Supp. 1169
• Parties: Emil SCHILLACHI, Jr., Plaintiff, v. FLYING DUTCHMAN MOTORCYCLE CLUB, Luke Zechman, Honda Motor Company Limited of Japan, American Honda Motor Co., Inc., American Motorcyclist Association, Schuykill County Ambulance Service, Schuykill Haven Lions Ambulance Service, "ABC Co.", and "John Doe", Defendants.
• Court: U.S. District Court — Eastern District of Pennsylvania

751 F. Supp. 1169

Emil SCHILLACHI, Jr., Plaintiff, v. FLYING DUTCHMAN MOTORCYCLE CLUB, Luke Zechman, Honda Motor Company Limited of Japan, American Honda Motor Co., Inc., American Motorcyclist Association, Schuykill County Ambulance Service, Schuykill Haven Lions Ambulance Service, "ABC Co.", and "John Doe", Defendants.

Civ. A. No. 88-7186.

United States Dist. Court, E.D. Pennsylvania.

October 19, 1990.

Daniel B. Juyett, Stevens & Lee, Reading, Pa., for plaintiff.

Eugene J. Maginnis, Jr., Cozen & O'Connor, Philadelphia, Pa., for defendants Flying Dutchman Motorcycle Club, Zechman and American Motorcyclist Ass'n.

Robert St. Leger Goggin, Marshall, Dennehey, Warner, Coleman & Goggin, Philadelphia, Pa., for defendants Honda Motor Co. Ltd. of Japan and Honda Research & Development Ltd. of Japan.

Robert J. Casey, Jr., Mylotte, David & Fitzpatrick, Philadelphia, Pa., for defendant Schuylkill Haven Lions Ambulance Service.

MEMORANDUM

TROUTMAN, Senior District Judge.

On September 21, 1986, plaintiff Emil Schillachi, Jr., was racing his Honda All-Terrain Vehicle ("ATV") in an ATV race at the Flying Dutchman Race-Track. An accident occurred in which plaintiff suffered severe injuries. Plaintiff filed the above action on September 16, 1988, alleging that his injuries were, in part, the result of the failure of defendants Flying Dutchman Motorcycle Club, Luke Zechman, and American Motorcyclist Association ("Race-Track defendants") to maintain the racetrack in a proper and safe condition, and failure to properly inspect, examine or otherwise determine whether plaintiff's ATV was in a proper and safe condition.

On August 18, 1989 the Race-Track defendants filed a motion for summary judgment, contending that plaintiff executed releases of liability when he signed the papers that allowed him to participate in the race. Plaintiff contends that when the Race-Track defendants gave him the papers, including the releases, to sign before he would be allowed to race, the Race-Track defendants did not fully explain the nature of the papers. Instead, plaintiff claims that the statements of the Race-Track defendants lead him to believe that the papers were given to him simply for obtaining membership in the American Motorcyclist Association ("AMA"), and that signing was a mere formality.

The exhibits attached to the Race-Track defendants' motion for summary judgment indicates that plaintiff signed two releases. The first release, in substantially smaller print than the rest of the form, reads:

I understand that all benefits become effective upon receipt of my membership card, except the right to participate in AMA-sanctioned meets, which becomes effective immediately. I understand that $7.50 of my Full Membership dues is for my monthly American Motorcyclist. AMA benefits may be changed at any time by the AMA Board of Trustees. I understand that the AMA cannot assume responsibility for any aspect of my safety and that if I participate in any sanctioned meet, I do so voluntarily on my own assessment of my own ability, the track course and all facilities and conditions, assuming all risk; and, I release and hold the AMA harmless for any injury or loss to my person or property which may result therefrom.

Race-Track defendants' Exhibit "C". The second release, again written in substantially smaller print than the rest of the form, reads as follows:

I, hereby release, and agree to hold harmless the American Motorcyclist Association, American All-Terrain Vehicle Association, the promoters, the owners and lessees of the premises, the participants, and the officers, directors, officials, representatives, agents and employees of all of them, of and from all liability, loss, claims and demands that may accrue from any loss, damage, or injury (including death) to my person or property, in any way resulting from, or arising in connection with this event, and whether arising while engaged in competition or in practice or preparation therefor, or while upon, entering or departing from said premises, from any cause whatsoever, I know the risk and danger to myself and property while upon said premises or while participating or assisting in this event, so voluntarily and in reliance, upon my own judgment and ability, and I thereby assume all risk for loss, damage or injury (including death) to myself and my property from any cause whatsoever.

Race-Track defendants' Exhibit "D". The circumstances under which the subject documents were executed are, according to plaintiff's brief in opposition, important material facts upon which this Court may base a denial of the Race-Track defendants' motion. The Court, however, finds this unpersuasive, and for the following reasons, will grant the Race-Track defendants' motion for summary judgment.

I. Summary Judgment.

Summary judgment shall be granted when there are no genuine issues of material fact in dispute and the movant is entitled to judgment as a matter of law. Fed.R.Civ.P. 56(c). To defeat summary judgment, an issue of fact in dispute must be both genuine and material, i.e. one upon which a reasonable factfinder could base a verdict for the non-moving party and one which is essential to establishing the claim. Anderson v. Liberty Lobby, 477 U.S. 242, 106 S.Ct. 2505, 91 L.Ed.2d 202 (1986). The Court is not permitted, when considering a motion for summary judgment, to weigh the evidence or make determinations as to the credibility thereof. The Court's sole function, with respect to the facts, is to determine whether there are any disputed issues and, if there are, to determine whether they are both genuine and material. Id. The Court's consideration of the facts, however, must be in the light most favorable to the party opposing summary judgment and all reasonable inferences from the facts must be drawn in favor of that party as well. Tigg Corp. v. Dow Corning Corp., 822 F.2d 358 (3d Cir.1987).

In order to obtain a summary judgment, the proponent of the motion has the initial burden of identifying evidence, from the sources enumerated in Rule 56, which demonstrates the absence of a genuine issue of material fact. When confronted by a properly supported motion for summary judgment, the opposing party is required to produce, from the same sources, some contrary evidence which could support a favorable verdict.

II. Conflict of Laws.

Although plaintiff's brief in opposition urges the Court to apply the law of New Jersey, the Court concludes that the law of Pennsylvania determines the effect of the exculpatory clause contained in the release. In support of his argument that New Jersey law is applicable, plaintiff cites Griffith v. United Air Lines, Inc., 416 Pa. 1, 203 A.2d 796 (1964) which accepted the reasoning of Babcock v. Jackson, 12 N.Y.2d 473, 191 N.E.2d 279, 240 N.Y.S.2d 743 (1963) and quoted therefrom: "The merit of a flexible choice of law rule is that `it gives to the place "having the most interest in the problem" paramount control over the legal issues arising out of a particular factual context' and thereby allows the forum to apply `the policy of the jurisdiction "most intimately concerned with the outcome of the particular litigation".' (citation omitted)" Griffith, 416 Pa. at 22, 203 A.2d 796. See also Compagnie des Bauxites de Guinee v. Argonaut-Midwest Insurance Co., et al., 880 F.2d 685 (3d Cir. 1989).

In the instant motion for summary judgment, the "problem" and "legal issue" is only the contractual validity and enforceability of the releases. The releases were signed in Pennsylvania, the accident occurred in Pennsylvania, and all relevant acts leading to the instant case occurred in Pennsylvania. The only event giving rise to the possible application of New Jersey law is the citizenship of plaintiff¹. For these reasons, the Court concludes that Pennsylvania is most immediately concerned with the legal issues involved in this motion for summary judgment. Thus, Pennsylvania law regarding the validity and enforceability of the releases should apply in this case. It cannot be expected, as plaintiff argues, that the (possibly) more lenient law of New Jersey should follow New Jersey citizens any time they leave that jurisdiction and avail themselves of opportunities that lie in other states.

III. Pennsylvania Law Regarding Releases of Liability.

The Pennsylvania Supreme Court set forth the conditions under which a release from liability is valid and enforceable in Employers Liability Assurance Corp., Ltd. v. Greenville Business Men's Association, 423 Pa. 288, 224 A.2d 620 (1966):

Generally speaking, an exculpatory clause is valid if: (a) `it does not contravene any policy of the law, that is, if it is not a matter of interest to the public or State....' citation omitted; (b) `the contract is between private persons relating entirely to their own private affairs' citation omitted; (c) `each party is a free bargaining agent' and the clause is not in effect `a mere contract of adhesion, whereby one party simply adheres to a document which he is powerless to alter having no alternative other than reject the transaction entirely.' citation omitted.

Assuming, arguendo, that the instant exculpatory clause satisfies all three conditions and is valid, our case law requires that, even if valid, an exculpatory clause must meet certain standards to be enforceable....

Id. at 291-292, 224 A.2d 620.

A. Validity of the Releases.

1. Public Policy.

The public policy of the law of Pennsylvania regarding an exculpatory clause releasing the promoters of a race such as involved here was summarized in Grbac v. Reading Fair Co., Inc., 521 F.Supp. 1351 (W.D.Pa.1981) aff'd 688 F.2d 215 (3d Cir. 1982):

A release in an agreement concerning participation in an automobile or motorcycle race does not contravene any policy of the law. Such a release has very little, if any, negative impact on the general population. Moreover, fewer promoters would be willing to hold automobile or motorcycle races if

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