SALEM, Ore. — A sense of urgency filled the air as members of the Oregon House Committee on Economic Development, Small Business, and Trade listened intently to harrowing stories of recreation-related tragedies across the state, ranging from deadly drownings on the Rogue River to severe skiing incidents on both Mount Hood and Mount Bachelor. Among the testimonies on February 19 were accounts of disastrous events including a horrific rodeo accident and disturbing cases of abuse.
As stakeholders presented evidence, the focus also turned to the burgeoning financial pressures faced by outdoor recreational businesses. Proprietors from ski lodges and rafting enterprises to backcountry outfitters shared their struggles with rising insurance premiums, driven in part by steep jury awards.
Central to the legislative discussion was House Bill 3140, a contentious proposal that would permit recreational enterprises to require customers to forego their right to sue for ordinary negligence by signing a liability waiver. This type of negligence, generally understood to involve a lack of proper care that could have prevented harm, has become a point of contention.
The recreation sector, a significant contributor to Oregon’s economy with over $16 billion spent in 2022 alone, finds itself at odds with consumer advocates. Industry representatives argue that without the ability to enforce waivers, the financial sustainability of their businesses — largely comprised of small operators — is at risk.
Addressing lawmakers, Hannah Wintucky, a representative from the Outdoor Industry Association, underscored the importance of the bill to sustain outdoor access. Conversely, prominent trial lawyer David Sugerman highlighted the imbalance the bill would introduce by stripping consumers of protections against corporate negligence.
This debate harkens back to a landmark case nearly two decades ago involving Myles Bagley, an 18-year-old snowboarder from Bend who became paraplegic following an accident at Mount Bachelor. The Oregon Supreme Court in 2014 found it unconscionable to enforce a liability waiver Bagley had signed, a decision that has since placed Oregon’s stance on liability waivers under scrutiny.
Bagley’s testimony emphasized the vital financial motivations for resorts to maintain safety in their operations. He stressed that liability should not be dismissed for artificially enhanced terrains or critical decisions about when to close dangerous runs.
David Byrd from the Denver-based National Ski Areas Association pointed to the unique legal landscape in Oregon, suggesting that the 2014 ruling made it a regional anomaly that facilitates lawsuits.
Meanwhile, insurance specialist Leslie Frazee and former defense attorney, now plaintiffs’ lawyer, Gretchen Mandekor voiced concerns over Oregon’s current protections for businesses. They noted that existing laws adequately shield companies from unfounded claims, advocating for personal responsibility among recreation participants.
The House Bill 3140 is set to move through further legislative scrutiny, reflecting a broader national conversation about the roles and responsibilities in recreational activity as noted in a recent Vanderbilt Law Review article. This ongoing debate captures a struggle between mitigating industry risks and preserving consumer rights.
In late June, a distressing incident added a personal face to the debate when Allison Hickey, a physical therapist from Bend, was seriously injured by a rogue rodeo bull. Hickey argues that while insurance costs are worth public concern, removing redress for injured parties is not justifiable.
As this legislative journey continues, its outcome holds significant implications not only for Oregon’s economy and legal framework but also for the fundamental principles of consumer protection and business operation within the recreational sector.
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