Why Minnesota Businesses Need to Reevaluate Their Liability Waivers After the Lund Decision
If you own a gym, fitness studio, adventure park, or any business where physical risk is involved, you’ve probably asked: Will a liability waiver actually protect my business from a lawsuit? A new decision from the Minnesota Supreme Court—Lund v. Calhoun Orange, Inc.—offers critical guidance and a cautionary tale for business owners across the state.
What Happened in Lund?
In 2017, a man named Fred Karasov joined Orangetheory Fitness in Uptown Minneapolis. As part of the signup process, he filled out a short “Client Intake Form” that included a paragraph full of legal language—essentially a waiver. Two years later, Karasov suffered cardiac arrest during a workout and, due to delays in using a defibrillator, suffered catastrophic brain injuries.
His conservator sued the gym for negligence, arguing that their actions directly caused his injuries. The gym defended itself using the waiver Karasov had signed.
Did the Waiver Hold Up?
Yes, because it clearly shifted liability for negligence claims.
The Minnesota Supreme Court held that the waiver was enforceable only because it included language that explicitly stated the gym would be indemnified for “all acts of active or passive negligence.” This language was specific and clearly showed the parties’ intent to shift liability, which is required under Minnesota’s strict legal standard for waivers.
However, the court also made it clear that vague, boilerplate phrases like “any and all claims” are not enough. Businesses must spell out in unmistakable terms that they are protecting themselves even from their own future negligence.
What This Means for Your Business
If your waiver isn’t carefully drafted—or if it hasn’t been updated in years—it may not offer the protection you think it does. The Lund decision reinforces several key takeaways and is a good reminder to check whether your waiver will hold up to scrutiny.
- Use Clear, Explicit Language
Your waiver must plainly state that it covers injuries arising from your business’s own negligent acts. Generic phrases won’t cut it. If your waiver uses language like “I waive all claims,” it may be thrown out by a court. - Be Consistent Within the Document
The Supreme Court emphasized that conflicting or inconsistent clauses can undermine the waiver’s enforceability. All parts of the document must work together to send a clear message. - Make the Waiver Easy to Understand and Prominently Displayed
Although the Court did not rule on formatting issues in this case, it noted that formatting flaws—like small print, poor grammar, or burying the waiver among unrelated policies—could pose problems in future cases. - Indemnity = Exculpation
Even if you think of indemnity clauses as a way to shift costs rather than liability, Minnesota courts treat them the same as exculpatory clauses when it comes to negligence. That means both require the same level of clarity and specificity.
What Should You Do Now?
This case is a wake-up call. A poorly drafted waiver can leave your business wide open to lawsuits—and the financial fallout that comes with them.
A good next step? Have an experienced Minnesota attorney review your current waiver or draft a new one that meets the legal standards clarified in Lund. As this case shows, the difference between a legally solid waiver and a vague one could determine whether your business survives a serious lawsuit.
Need Help?
At Hellmuth & Johnson, we help Minnesota businesses reduce legal risk through careful, proactive planning. Contact us today to schedule a waiver review or to develop a liability strategy that protects what you’ve built. Even if you need help because someone has threatened or started a lawsuit, we can discuss whether your waiver can protect your business.
