Bogoroch & Associates LLP strongly believes
that victims of Personal Injury are entitled to access to justice. This new post is based on law in Ontario, Canada and generally.
With warmer weather
finally on the horizon, Ontarians are enthusiastically heading outdoors to
enjoy recreational activities such as rock-climbing, treetop rope courses, and
skydiving simulators. Many of us will hardly reflect on the effect of signing a
waiver before getting in line to enjoy these activities.
A recent Ontario
Court of Appeal decision has made it more difficult for victims injured while
partaking in activities like these to obtain compensation. The Court of
Appeal upheld the use of waivers by commercial occupiers, including ski
resorts, to avoid or mitigate liability, and held that plaintiffs could not
rely on the Consumer Protection Act to override valid waivers
under the Occupiers’ Liability Act.
This decision related
to two appeals that involved similar issues concerning the interaction and
conflict of the Occupiers’ Liability Act, RSO 1990, c. O.2 (“OLA”)
and the Consumer Protection Act, 2002, SO 2002, c. 30, Sched. A (“CPA”).
The plaintiff in the
first action, David Schnarr, purchased a season ski pass to Blue Mountain
Resorts, and executed a waiver that waived any claims against the ski area
operator and others, and released them from liability for any damages that he
may suffer. Mr. Schnarr then allegedly collided with a piece of debris while
skiing on the premises. In the Rule 21 motion decision, Schnarr v. Blue
Mountain Resorts Limited, 2017 ONSC 114, Tzimas J. held that there was no
conflict between the OLA and the C.P.A. Tzimas J. held that Mr. Schnarr could
advance two causes of action: one for negligence, which would be subject to the
waiver, and one for breach of warranty, which would not be subject to the release
as the release was void under sections 9(3) and (4) of the CPA Blue Mountain
appealed the decision.
The plaintiff in the
second action, Elizabeth Woodhouse, purchased a lift ticket, equipment rental
and a ski lesson at Snow Valley and executed a waiver. Ms. Woodhouse was then
allegedly injured while using a tow rope on the premises. In Rule 22 case
motion decision Woodhouse v Snow Valley, 2017 ONSC 222, McCarthy J.
held that section 9 of the CPA voided the waiver and that these sections
superseded the OLA provisions. However, McCarthy J. held that a court could have
a void waiver bound a consumer under section 93(2) of the CPA. Ms. Woodhouse
appealed the decision concerning the applicability of section 93(2) and Snow
Valley cross-appealed concerning the application of section 9.
The main legal issue
on appeal was whether sections 7(1) and 9 of the CPA overrides or otherwise
impacts section 3 of the OLA. Section 7(1) of the CPA expressly prohibits the
use of waivers:
7(1) The substantive
and procedural rights given under this Act apply despite any agreement or
waiver to the contrary.
9(1) The supplier is
deemed to warrant that the services supplied under a consumer agreement are of
reasonably acceptable quality.
(3) Any term or
acknowledgment, whether part of the consumer agreement or not, that purports to
negate or vary any implied condition or warranty under the Sale of Goods Act or
any deemed condition or warranty under this Act is void.
(4) If a term or
acknowledgment referenced in subsection (3) is a term of the agreement, it is
severable from the agreement. It shall not be evidence of circumstances showing
an intent that the deemed or implied warranty or condition does not apply.
Conversely, sections
3 and 4 of the OLA permits the use of waivers:
3(1) An occupier of
premises owes a duty to take such care. In all the case circumstances, it is
reasonable to see that persons entering the premises and the property brought
on the premises by those persons are reasonably safe while on the premises.
(2) The duty of care
provided for in subsection (1) applies whether the danger is caused by the premises’
condition or by an activity carried on the premises.
(3) The duty of care
provided for in subsection (1) applies except in so far as the occupier of
premises is free to and does restrict, modify, or exclude the occupier’s duty.
4(1) The duty of care
provided for in subsection 3(1) does not apply in respect of risks willingly
assumed by the person who enters on the premises. Still, in that case, the
occupier owes a duty to the person to not create a danger with the deliberate
intent of doing harm or damage to the person or their property and not act with
reckless disregard of the presence of the person or his or her property.
As Nordheimer J.A.
stated, “what the OLA permits, the CPA prohibits” (para. 43). It was
held that there was an apparent conflict between the provisions.
Turning to the issue
of how the conflict should be resolved, the Court of Appeal held that the OLA
should take precedence for the following reasons:
- section
9(1) of the OLA sets out a “class of things” that may have
higher liability or standard of care, including innkeepers, common
carriers, and bailees. The Court held that while the list was not
exhaustive, the items are of a different class than the consumer
transactions considered under the CPA.
- The
OLA was intended to be an exhaustive legislative scheme that replaced the
common law concerning occupiers’ liability, and the CPA should not be
interpreted to infringe on that scheme.
- The
OLA deals specifically with waivers of liability, whereas the CPA generally
applies to all consumer transactions. The specific provisions of the OLA
override the general conditions of the CPA; and
- it
would be absurd to conclude “that the Legislature went through the
exercise of amending the OLA to clarify the liability of occupiers, and to
encourage them to open their property for use by members of the public,
all to have it rendered of no force or effect because of the existence of
the CPA” (para 68).
Ms. Woodhouse’s claim
raised the specific issue of whether section 93(2) of the CPA could be used to
hold a consumer to a waiver of liability, even if section 9(3) of the CPA
voided the release. The Court of Appeal dismissed the defendant’s argument that
the Court could hold a consumer to a waiver of liability, even if the waiver were
void under section 9(3), stating:
The purpose behinds.
93(2) is to avoid situations where a consumer, who has received the benefit of
a consumer agreement, attempts to retain those benefits without performing his
or her side of the agreement because of a technical breach of the CPA Section
93(2) is not intended to permit the Court to hold a consumer to a consumer
agreement that violates one of the basic tenets of the CPA, especially when the
provision is void. (para 77)
The Court of Appeal
held that the Blue Mountain waiver bound Mr. Schnarr and Ms. Woodhouse was
bound by the release in her lift ticket and the Snow Valley waiver, regardless
of whether their claims were in tort or for breach of warranty.
Suppose you have been
injured in a skiing accident or during another recreational activity. In that
case, the personal injury lawyers at Bogoroch & Associates LLP can help you
understand your legal rights and the impact of any waivers you signed.