Can You Waive Liability For Reckless Conduct? Iowa Supreme Court Finally Says No.

• Published date: 14 January 2022
• Subject Matter: Litigation, Mediation & Arbitration, Trials & Appeals & Compensation, Personal Injury, Professional Negligence
• Law Firm: Husch Blackwell LLP
• Author: Mr Robert C. Rakers and Nicholas Stepp

Earlier this year, litigants tested the limits of liability waivers under Iowa law. In a 6-1 decision, the Iowa Supreme Court joined the bulk of other jurisdictions and held a contractual liability waiver was not enforceable "to the extent it purports to eliminate liability for the willful, wanton, or reckless conduct" a plaintiff alleges. Lukken v. Fleischer, 962 N.W.2d 71, 82 (Iowa 2021).

What Happened

In 2016, Mr. Lukken was seriously injured on a zip line near Honey Creek, Iowa. Lukken "slammed" into a pole, fracturing his neck after an employee of the zip line business failed to reset the zip line's brake. Lukken signed a liability waiver before zip lining but still sued the zip line business owner. Mr. Lukken also sued the zip line's original manufacturer even though its braking system was not installed when Lukken was injured.

Both defendants filed motions for summary judgment in the district court. The district court granted summary judgment in favor of the zip line manufacturer, reasoning it breached no duty to Lukken and did not cause Lukken's injuries. The district court also granted summary judgment in favor of the zip line business, reasoning that Iowa courts "consistently" uphold liability waivers and that the waiver at issue contained language sufficiently "clear and unequivocal" to show that Lukken understood he was waiving "any and all negligence" claims, including claims for gross negligence.

What the Court Decided

The Iowa Supreme Court affirmed summary judgment in favor of the zip line manufacturer. Because its braking system was uninstalled, the defendant-manufacturer owed no duty of care to Lukken, and Lukken's negligence theory failed against this defendant. The defendant-manufacturer also had no duty to provide training or policies on the safe operation of the replacement braking system.

However, the Iowa Supreme Court reversed the summary judgment entered in favor of the zip line business and remanded claims for further proceedings. As the Iowa Supreme Court explained, in Iowa "there are no degrees of care or of negligence." Iowa does not differentiate between "gross" negligence and "ordinary" negligence. As such , the liability waiver blocked all negligence claims against the zip line business - regardless of the degree of negligence.

But Lukken's petition did not merely allege negligence and gross negligence. It also alleged willful, wanton, and reckless conduct. Iowa courts recognize "separate grounds for tort liability based...