Tag Archives: Exculpatory Clause

In Georgia, A Waiver of Subrogation Clause is not an Exculpatory Clause That Must be Prominently Displayed


This entry was posted by on .

In Allstate Insurance Company v. ADT, LLC, No. 1:15-cv-517-WSD, 2016 U.S. Dist. LEXIS 120880 (N.D. Ga.), the United States District Court for the Northern District of Georgia addressed the question of whether a contract’s insurance and waiver of subrogation clause was an exculpatory clause that was unenforceable because it did not pass Georgia’s Prominence Test. The court held that a waiver of subrogation clause is not an exculpatory clause and, thus, its enforceability does not depend on the clause being prominently displayed.

Continue reading

This entry was posted in Georgia, Waiver of Subrogation and tagged , , .

The Fourth Circuit Applies a Consequential Damages Exclusionary Clause and the Economic Loss Doctrine to Bar Claims by a Subrogating Insurer Seeking to Recover Over $19 Million in Damages


This entry was posted by on .

In Severn Peanut Company, Inc. v. Industrial Fumigant Company, 807 F.3d 88 (4th Cir. (N.C.) 2015), the United States Court of Appeals for the Fourth Circuit (Fourth Circuit), applying North Carolina law, considered whether a consequential damages clause in a contract between the Severn Peanut Company, Inc. (Severn) and Industrial Fumigant Company (IFC) barred Severn and its subrogating insurer, Travelers Property Casualty Company of America (Travelers), from recovering over $19 million in damages that Severn suffered as the result of a fire and explosion at its Severn, North Carolina plant. The Fourth Circuit, rejecting Severn’s unconscionability and public policy arguments related to the consequential damages clause and finding that the economic loss doctrine barred Severn from pursuing negligence claims, affirmed the trial court’s judgment granting summary judgment in IFC’s favor.

Continue reading

This entry was posted in Economic Loss Rule, Limitation of Liability, North Carolina and tagged , , .

In Florida, Exculpatory Clauses Do Not Need Express Language Referring to the Exculpated Party’s Negligence


This entry was posted by on .

By: Edward Jaeger and William Doerler

In Sanislo v. Give Kids the World, Inc., 157 So.3d 256 (Fla. 2015), the Supreme Court of Florida considered whether a party to a contract, in order to be released from liability for its own negligence, needs to include an express reference to negligence in an exculpatory clause. The court held that, unlike an indemnification clause, so long as the language in an exculpatory clause is clear, the absence of the terms “negligence” or “negligent acts” in an exculpatory clause does not, for that reason alone, render the exculpatory clause ineffective.

Continue reading

This entry was posted in Contracts, Florida, Litigation and tagged , .