Total Eclipse of …Liability? A Cosmic Reminder of the Use and Effectiveness of Exculpatory Language in Contract

Southern Illinois recently drew national attention as the path of a total solar eclipse crossed the state, bringing hundreds of thousands of visitors—and renewed focus on liability risks associated with public events. The eclipse serves as a timely reminder of the role exculpatory clauses can play in allocating risk through express assumptions of liability. Although Illinois law generally permits parties to contractually limit liability for negligence, such provisions are strictly construed and disfavored by courts. To be enforceable, an exculpatory clause must clearly and unequivocally identify the specific activity and foreseeable risks being assumed. Broad, generalized waivers that fail to define the nature and scope of the risk are unlikely to withstand judicial scrutiny, underscoring the importance of precise drafting when attempting to shift liability for known dangers.

Economic Loss Doctrine? Alive and Well in Missouri

Are you tempted to turn breach of contract disputes into tort claims? Think again. The Eighth Circuit’s recent ruling in Dannix Painting, LLC v. Sherwin-Williams Company reaffirms the economic loss doctrine in Missouri, emphasizing that tort claims cannot replace contractual risk allocation. With a painting contractor’s negligent misrepresentation claim dismissed, the court highlights the importance of understanding the limitations of warranty provisions under the UCC. This decision serves as a crucial reminder for buyers and sellers alike: navigate your contracts with care to avoid costly pitfalls. Dive deeper into the implications of this ruling and protect your interests.