Governor signs Walsh bill protecting nonprofits from lawsuits

Speaker Pro Tem John Walsh (left) recently announced that Gov. Rick Snyder (right) has signed legislation into law that would protect nonprofit organizations from being sued by parents who had signed a written release allowing their child to participate in a sport.

"Nonprofits were exposed to liability for injuries suffered by children participating in sports, even though the parent or guardian had signed a written release of liability," said Walsh, R-Livonia.

"The bill permits use of the waiver as long as the injury was sustained during the normal participation in the sport or activity. However, if the injury resulted because of negligence on the part of the sponsoring organization, parents could still seek legal relief."

Changes in the law were deemed necessary after Michigan courts determined that written waivers signed by parents were invalid based on common-law rules. Walsh's bill provides a statutory exception to common law that the Michigan Supreme Court ruled necessary.

"Because of the court decisions, many smaller nonprofits were in a position where they might not have offered sports and recreation activities," Walsh said. "They were precluded from organizing events because they would have been put in financial jeopardy without the protection of the waivers."

The bill would cover only nongovernmental, nonprofit organizations, because governmental organizations such as schools already have immunity, and for-profit ventures can obtain insurance.

Published: Thu, Jun 23, 2011