Negotiations over waivers for Oregon gyms, ski resorts and more face ‘impasse’ in Legislature

An effort in the Oregon Legislature to curb frivolous lawsuits and rising insurance premiums that have rocked gyms, ski resorts and other health and recreation providers is facing another roadblock as talks reached an impasse over the weekend.

Lawmakers are trying to fix what industry leaders describe as an insurance crisis gripping businesses throughout Oregon.

The effort centers on restoring the legal authority of liability waivers, a written agreement that a customer won’t sue a business for negligence.

Unlike other West Coast states, they aren’t enforceable in Oregon because of a 2014 state Supreme Court ruling.

But a dispute between those businesses and trial lawyers over how to tackle this problem while preserving Oregonians’ right to sue is leaving the legislation’s chances uncertain, with less than a week to go in the legislative session.

State Rep. Emerson Levy, D-Bend, told OPB that leaders have been locked in negotiations over exceptions outlined in Senate Bill 1517, which passed the state Senate last week.

Those exceptions would allow people who sign waivers to sue under a variety of circumstances, including if an accident occurred in a parking lot or stemmed from a negligently hired person.

Critics fear those exceptions in the bill would effectively render liability waivers ineffective, allowing customers to file frivolous lawsuits and increasing liability.

Supporters say such exceptions are necessary to protect Oregonians’ rights in the case of tragic accidents.

But after hours of talks over the weekend, the Oregon Trial Lawyers Association declared an “impasse,” according to Levy. The group said “the divide is not one that can be bridged between now and Sine Die,” according to an email reviewed by OPB.

Oregon lawmakers must end the session by March 8.

“Every side tried very, very hard,” Levy said in a public hearing Monday morning. “We’re going to have to pick winners and losers. That’s just the truth of this.”

The association, a powerful political lobbying force in Salem, submitted testimony on Monday opposing the bill.

The group called one amendment to it “overly broad,” and said another risks “tipping the balance away from Oregon consumers and toward negligent actors who have inflicted real harm to Oregonians recreating in our state.”

“In the face of an extremely hyperbolic public relations campaign by the recreation industry, the stories of victims have been lost,” the testimony said.

Left unaddressed, industry leaders have warned that their insurance woes could worsen, increasing costs for customers and further straining a cornerstone of Oregon’s economy. Among the most vocal groups have been those representing ski resorts, many of which are contending with dismal snow conditions across the state this year.

State Sen. Mark Meek, D-Gladstone, who proposed a competing bill that is broadly supported by those industries, testified in the public hearing on Monday opposing the bill.

“Oregon is in an affordability crisis for recreation, health and fitness, and insurers are leaving the market or refusing to write coverage at all,” Meek said.

“And the result is simple: Families are losing access to the activities they love, whether that’s skiing, youth sports, climbing gyms, paddling or local fitness studios,” Meek said.

The bills would not have a person sign away their right to sue under “gross negligence,” a higher degree of recklessness in which a facility was aware of a problem but failed to address it before a person was injured.

Lawmakers are still jockeying over several amendments to SB 1517.

Meek’s bill remains in the Senate Committee on Rules. An identical bill to that one did not advance earlier this session.

Levy and other sources in Salem say the effort isn’t dead yet, as further discussions were scheduled on Monday.

“There’s still a chance,” Levy said. “I think there’s always a chance until the gavel falls.”