Exculpatory Agreements

March 12, 2026

Damages based on fraud not limited by contractual language.

Where the trial court found that the defendants committed fraud, not breach of contract, the damages awarded were not limited by language in the parties’ contract.

In Amonett’s Eagle Auction & Realty, LLC v. Norris Bro. Properties, LLC, No. E2024-01931-COA-R3-CV (Tenn. Ct. App. Dec. 17, 2025), the plaintiff was an auction company that contracted to sell real property at auction for the defendants. During the auction, the individual defendants bid on the property themselves to increase the price, and they caused a shill bidder to also take part and increase the price. An LLC owned by the defendants won the auction, but it refused to complete the sale.

The plaintiff auction company filed this suit, asserting various tort claims. The trial court found that the defendants committed fraud and intentional misrepresentation, and it awarded the plaintiff over $91,000 as compensation for the plaintiff’s damages for not having the sale completed, lost time, lost sales expenses, and attorneys’ fees. While the defendants did not appeal the finding of fraud, they did appeal the damages awarded.

January 9, 2020

Pre-Suit Waivers of Liability in Tennessee

by The Law Offices of John Day, P.C.

Those interested in the current law of Tennessee on the issue of whether contractual waivers of liability are enforceable in Tennessee may wish to read my recent article in Tennessee Bar Journal.

Contractual waivers, also referred to as exculpatory provisions, attempt to limit liability for negligence (or perhaps even reckless and intentional misconduct).

September 21, 2017

Exculpatory Provision Enforced in Transportation Agreement

by The Law Offices of John Day, P.C.

An exculpatory agreement contained in a contract for transportation services may be enforceable against a plaintiff claiming ordinary negligence.

In Copeland v. Healthsouth/Methodist Rehabilitation Hospital, L.P., No. W2016-02499-COA-R3-CV (Tenn. Ct. App. Aug. 10, 2017), plaintiff was recovering from knee surgery in a hospital and had a follow-up appointment with his surgeon. The hospital helped arrange for defendant transportation service to take plaintiff to this appointment. “After the appointment, [plaintiff] was injured when he fell while getting back into the MedicOne transport van.” Before being transported by defendant, plaintiff signed several documents. One stated that the van provided was “not an ambulance and no care will be given by the…technician.” The second specified that it was for “transportation services” and that “there are inherent risks associated with such transportation which pose a risk of harm or injury.” This agreement also contained a release, which stated that plaintiff “SPECIFICALLY DISCHARGES MEDIC ONE RELATED PARTIES FROM ANY AND ALL CLAIMS ARISING DIRECTLY FROM OR AS A RESULT OF THE NEGLIGENCE (BUT NOT GROSS NEGLIGENCE OR WILLFUL MISCONDUCT ) OF MEDIC ONE RELATED PARTIES.”

Plaintiff filed this negligence suit against the transportation company and the hospital that arranged the service. The trial court granted summary judgment to both defendants, finding that the release was enforceable and waived all claims of ordinary negligence. Plaintiff appealed, but only as to defendant transportation company, and summary judgment was affirmed.