The plaintiff was injured during a charity bike ride through the City of Philadelphia when he rode into a known, unmarked and un-barricaded sinkhole. Prior to participating, the plaintiff executed an exculpatory contract, thereby releasing the City from lability resulting from "any and all claims of liability for [personal injury,] . . . even if caused by the negligence of [the City.]" The plaintiff was awarded damages following a jury trial. The trial court denied the City's judgment notwithstanding the verdict based in part on the release, concluding the release violated public policy by exculpating the City from liability pursuant to the Political Subdivision Tort Claims Act's (PSTCA) "streets" exception to sovereign immunity.
The Commonwealth Court reversed, holding that the release was a voluntary, private agreement.
The Pennsylvania Supreme Court reversed, reinstating the trial
court's order. The Supreme Court held that the release violated
public policy, given that the General Assembly did not provide a
mechanism for a municipality to immunize itself through exculpatory
contracts or "any other means." The court emphasized that
the Legislature is the exclusive body with authority to confer
immunity upon political subdivisions and, as such, has removed
immunity, vis-à-vis the PSTCA, for a municipality's
negligence in the maintenance or repair of dangerous street
conditions for which they have proper notice. The court concluded
the release removed incentives for City to exercise minimal
standards of care due to maintain public streets in a reasonably
safe condition for their reasonably foreseeable uses, such as a
planned charity bike ride, where known or knowable dangerous
conditions pose great and reasonably preventable risks.
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