“it is critically important to say the right thing in … · 1/8/2018 1 attorney and author 9777...

16
1/8/2018 1 Attorney and Author 9777 Pyramid Ct. #225, Englewood, CO 80112 (866) 582-2586 [email protected] “IT IS CRITICALLY IMPORTANT TO SAY THE RIGHT THING IN THE RIGHT PLACE . . . MORE IMPORTANT STILL TO AVOID SAYING THE WRONG THING AT THE WRONG TIME.” BENJAMIN FRANKLIN

Upload: others

Post on 25-Jul-2020

0 views

Category:

Documents


0 download

TRANSCRIPT

Page 1: “IT IS CRITICALLY IMPORTANT TO SAY THE RIGHT THING IN … · 1/8/2018 1 Attorney and Author 9777 Pyramid Ct. #225, Englewood, CO 80112 (866) 582-2586 j.waite@wwlegal.net “IT IS

1/8/2018

1

Attorney and Author

9777 Pyramid Ct. #225, Englewood, CO 80112(866) 582-2586

[email protected]

“IT IS CRITICALLY IMPORTANT TO SAY THE RIGHT THING IN THE RIGHT PLACE . .

. MORE IMPORTANT STILL TO AVOID SAYING THE WRONG THING AT THE

WRONG TIME.”BENJAMIN FRANKLIN

Page 2: “IT IS CRITICALLY IMPORTANT TO SAY THE RIGHT THING IN … · 1/8/2018 1 Attorney and Author 9777 Pyramid Ct. #225, Englewood, CO 80112 (866) 582-2586 j.waite@wwlegal.net “IT IS

1/8/2018

2

STATEMENTS OF THE PARTIES

• City Officials: Noted that their inspectors have no way to test a tent for structural strength to make sure it can withstand 90 mph winds.

• Plaintiff’s Attorney: "From the git-go, we're alleging that the tent was dangerous," said Greg Shevlin. "Kilroy's knew or should have known that.”

• Bar Owners: Kilroy’s questioned the safety of the tent, but testified they assumed the tent was secure based on the assurances of the City inspectors and Sun Rental.

• Bar Owners: Claimed they had no warning of the storm – the jury was not convinced.

• City Public Safety Director: Called for changes to safety regulations that would require evacuations of large public tents during warnings of severe weather.

• Rental Company: They believed the tent was properly installed. “Those things are not designed to be storm shelters.” (did he tell that to the customer?).

• Critical Remaining Question: Although Sun Rental settled the suit, will the bar seek reimbursement from Sun for failing to warn them of the need to evacuate? WHAT DOES THE CONTRACT SAY?

Kilroy’s Case

LiabilityPersonal Injuries

Injuries to a person’s physical being, as distinguished from his/her property, feelings or reputation

LiabilityProperty Damage

Loss, Injury or damage to real or personal property

Page 3: “IT IS CRITICALLY IMPORTANT TO SAY THE RIGHT THING IN … · 1/8/2018 1 Attorney and Author 9777 Pyramid Ct. #225, Englewood, CO 80112 (866) 582-2586 j.waite@wwlegal.net “IT IS

1/8/2018

3

LiabilityOther Reasonably Foreseeable Damages

All other damages that were “reasonably foreseeable” consequences of the lessor’s breach or misconduct (e.g., the claim of a third party

injured by a collapsed tent).

LiabilityPunitive Damages

Additional amounts awarded as a penalty, usually for commission of some “knowing and intentional” wrong

Liability / Lawsuits

Lessor

Customer/ Lessee

Equipment Operator

Property Owner

Service Providers

Injured Visitors

Other Contractors Bystanders

General Contractor

Potential Lawsuits

Foreseeable Claims

Direct Claims

Indirect Claims

Page 4: “IT IS CRITICALLY IMPORTANT TO SAY THE RIGHT THING IN … · 1/8/2018 1 Attorney and Author 9777 Pyramid Ct. #225, Englewood, CO 80112 (866) 582-2586 j.waite@wwlegal.net “IT IS

1/8/2018

4

Liability / Lawsuits

Lessor

Customer/ Lessee

OperatorProperty

Owner

Service Providers

Injured Visitors

Other Contractors Bystanders

Sublessee

Potential Lawsuits

Foreseeable Claims

Direct Claims

Indirect Claims

Liability / Lawsuits

Lessor

Customer/ Lessee

Equipment Operator

Property Owner

Service Providers

Injured Visitors

Other Contractors Bystanders

General Contractor

Potential Lawsuits

Foreseeable Claims

Direct Claims

Indirect Claims

Products Liability Expansion ORIGINAL APPLICATION:

THE SELLER OR LESSOR WAS LIABLE ONLY TO THE DIRECT CONSUMER.

RESTATEMENT (SECOND) OF TORTS, § 402A (RESTATEMENT

(THIRD) OF TORTS: PRODUCTS LIABILITY) HAS SINCE BEEN

ADOPTED BY ITS DRAFTERS, BUT NOT UNIVERSALLY ACCEPTED

BY COURTS AROUND THE UNITED STATES).

SUBSEQUENT EXPANSION:

NOW: ANYONE CLAIMING TO HAVE BEEN AFFECTED can sue.

Since 1965, Products Liability Law has been expanded to include everyone in the “chain of distribution.

Page 5: “IT IS CRITICALLY IMPORTANT TO SAY THE RIGHT THING IN … · 1/8/2018 1 Attorney and Author 9777 Pyramid Ct. #225, Englewood, CO 80112 (866) 582-2586 j.waite@wwlegal.net “IT IS

1/8/2018

5

“WINNING ISN’T EVERYTHING;

IT’S THE ONLY THING.”VINCE LOMBARDI

ARE YOU SAYING THIS IS A “GAME”?

PERHAPS NOT,

BUT CERTAINLY A “CONTEST”

The Rules

WHAT IF YOU COULD

DICTATE THE RULES?

Page 6: “IT IS CRITICALLY IMPORTANT TO SAY THE RIGHT THING IN … · 1/8/2018 1 Attorney and Author 9777 Pyramid Ct. #225, Englewood, CO 80112 (866) 582-2586 j.waite@wwlegal.net “IT IS

1/8/2018

6

KEY QUESTION #1WHAT ARE YOU

TRYING TO ACCOMPLISH?

Key Question #1WHAT ARE YOU TRYING TO ACCOMPLISH?

1. WIN2. RENT YOUR EQUIPMENT

3. REQUIRE PAYMENT OF ALL CHARGES

4. PROTECT YOUR EQUIPMENT

5. GET YOUR EQUIPMENT BACK

6. GET THE CUSTOMER TO PROVIDE INSURANCE (WHERE POSSIBLE)

7. SELL DAMAGE WAIVER

8. AVOID LAWSUITS / SHIFT LIABILITY TO OTHERS / PROTECT

YOURSELF

Page 7: “IT IS CRITICALLY IMPORTANT TO SAY THE RIGHT THING IN … · 1/8/2018 1 Attorney and Author 9777 Pyramid Ct. #225, Englewood, CO 80112 (866) 582-2586 j.waite@wwlegal.net “IT IS

1/8/2018

7

HOW TO AVOID LITIGATION AND GET OUT EARLY…

USE YOUR RENTAL CONTRACTYour Rental Contract can be enormously valuable as:

(a) a Barrier to Litigation in Distant Jurisdictions;

(b) a means of Avoiding Suit by discouraging potential plaintiffs and their lawyers;

(c) a means of obtaining Summary Judgment at or near the beginning of a case; and

(d) a means of Shifting Costs to someone else in the event you do get sued and cannot obtain Summary Judgment.

Key Question #2

HOW DO YOU ACCOMPLISH

THESE OBJECTIVES?

Key Question #2HOW DO YOU ACCOMPLISH THESE OBJECTIVES?

1. AGREEMENT TO RENT

2. AGREEMENT TO PAY RENT AND ALL OTHER AMOUNTS DUE

3. USE REQUIREMENTS / RESTRICTIONS

4. NOTICES OF SPECIFIC HAZARDS / WEATHER, EVACUATION PLANS, ETC.

5. INSURANCE REQUIREMENTS

6. DAMAGE WAIVER PROVISION

7. WARRANTY WAIVER

8. INDEMNITY, DEFENSE AND HOLD HARMLESS

9. DEFAULT / REMEDIES

10. OTHER HELPFUL PROVISIONS (JURISDICTION, VENUE, INTEREST, ATTY FEES, ETC.)

Page 8: “IT IS CRITICALLY IMPORTANT TO SAY THE RIGHT THING IN … · 1/8/2018 1 Attorney and Author 9777 Pyramid Ct. #225, Englewood, CO 80112 (866) 582-2586 j.waite@wwlegal.net “IT IS

1/8/2018

8

Key Question #3

WHAT’S IN

YOUR

CONTRACT?

Key Question #3WHAT’S IN YOUR RENTAL CONTRACT?

1. WHERE DID IT COME FROM?

2. WHO WROTE IT?

3. DID THEY KNOW WHAT THEY WERE TRYING TO ACCOMPLISH?

4. DO THEY KNOW THE LAW AND HOW TO ACCOMPLISH YOUR

OBJECTIVES?

5. HOW LONG HAS IT BEEN IN USE?

Key Question #3WHAT’S IN YOUR RENTAL CONTRACT?

1. AGREEMENT TO RENT (NO REFERENCE IN OVER 71%)

2. AGREEMENT TO PAY ALL AMTS. DUE: (NO/PARTIAL REFERENCE OVER 95%)

3. USE REQUIREMENTS / RESTRICTIONS (57% - NO REQMT. TO COMPLY WITH APP. LAWS)

4. NOTICES OF SPECIFIC HAZARDS (OVER 70% ONLY PARTIAL WEATHER/COLLAPSE)

5. INSURANCE REQUIREMENT (ONLY 29% REFERENCE INSURANCE)

6. DAMAGE WAIVER PROVISION (OVER 50% / BUT 50% ONLY PARTIAL)

7. WARRANTY WAIVER (100% INCLUDED, BUT 100% WERE INADEQUATE)

8. INDEMNITY, DEFENSE, HOLD HARMLESS (100% INCLUDED, BUT 70% WERE INADEQUATE)

9. DEFAULT / REMEDIES (LESS THAN 30% INCLUDED ANY REFERENCE)

10. OTHER HELPFUL PROVISIONS (MIXED)(JURISDICTION, VENUE, INTEREST, ATTY FEES, ETC.)

Page 9: “IT IS CRITICALLY IMPORTANT TO SAY THE RIGHT THING IN … · 1/8/2018 1 Attorney and Author 9777 Pyramid Ct. #225, Englewood, CO 80112 (866) 582-2586 j.waite@wwlegal.net “IT IS

1/8/2018

9

Key Question #4

WHY SHOULD

YOU CARE?

(WHAT’S THE WORST THAT COULD HAPPEN?

REAL-LIFE LIABILITY CLAIM:FACTS:

A sudden storm hits an air show in Alabama, lifting a string of tents from theground and causing a large air conditioner to fall on a person attending the show,resulting in fatal injuries to a child.The family sued alleging negligence (specifically, failure to perform inspectionsand the lack of an EVACUATION PLAN) against seven (7) different defendants:

1. The Airport Authority;

2. The Event Sponsor;

3. The Event Marketing Director (personally);

4. The Airport Authority’s Operations Director;

5. Aggreko, LLC, the provider of the air conditioner;

6. Empresas Mayer, the air conditioner’s manufacturer; and

7. The Tent Lessor, ALL Needz Rental).Aggreko also cross-claimed against the Tent Lessor.The suit was ultimately settled for an undisclosed amount.

CONTRACT PROVISIONS THAT WOULD LIKELY HAVE HELPED• RECEIPT/INSPECTION CERTIFICATE

• PROPER USE CLAUSE

• LIABILITY DISCLAIMER

• ASSUMPTION OF RISK

• INSURANCE REQUIREMENTS

• HOLD HARMLESS, INDEMNITY AND DEFENSE PROVISION: NOTE: include indemnity for officers, directors, agents and employees in case any individuals get sued

• AGREEMENT TO PERMIT LESSOR TO DELAY/REFUSE DELIVERY OF AND/OR RETRIEVE TENTS in the event of Severe Weather

• EVACUATION PLAN ADDENDUM – providing specific notice to lessee and appointing a “Point Person” and advising event workers and patrons of where to go and what to do in an emergency * OSHA §1910.38, NFPA 101, IFC-2012.

Page 10: “IT IS CRITICALLY IMPORTANT TO SAY THE RIGHT THING IN … · 1/8/2018 1 Attorney and Author 9777 Pyramid Ct. #225, Englewood, CO 80112 (866) 582-2586 j.waite@wwlegal.net “IT IS

1/8/2018

10

EVACUATION PLANS:

Audience Poll:

1. Who Currently Requires that their Customers Create and Post an EVACUATION PLAN?

2. Do You Typically Get a Copy of the Customer’s EVACUATION PLAN before the Event?

3. How Many People Actually Know Whether Their Customers are Creating EVACUATION PLANS?

4. How Many People Know What Should be Included in an EVACUATION PLAN?

Why Should You Care?1. POTENTIALLY DISASTROUS LAWSUITS

• PRODUCTS LIABILITY• NEGLIGENCE• BREACH OF CONTRACT • OTHERS

2. UNCOMPENSATED EQUIPMENT DAMAGE/LOSSES • DAMAGE• DESTRUCTION• THEFT/DISAPPEARANCE

3. NO INSURANCE COVERAGE• DEDUCTIBLES

• COVERAGE LIMITS

• CLAIM DENIALS (E.G., FOR DEMOS. DEALER-TYPE INSURANCE SEEMS TO EXCLUDE THEM)

4. LEGISLATIVE/REGULATORY ISSUES – FINES / SEIZURES• ENVIRONMENTAL REGULATIONS: TIER IV (EQUIPMENT REQUIREMENTS, TAMPERING FINES,

ETC.)• NOISE RESTRICTIONS, SPARK ARRESTOR REQUIREMENTS, IDLING LIMITS, TRAINING AND

FAMILIARIZATION REQUIREMENTS, DIG NOTICES, OSHA, ANSI, DOT, FMCSA, NFPA, IBC, ETC.

5. TAXES, TOLLS, FEES, FINES, EQUIPMENT SEIZURES

Limiting/Avoiding Breach of Contract Claims

1. CONTRACT OBLIGATIONS: LIMIT THE LESSOR’S OBLIGATIONS BY INCLUDINGSPECIFIC TERMS IN THE RENTAL CONTRACT;

2. WARRANTY WAIVER: INCLUDE AN ENFORCEABLE WAIVER OF ALL EXPRESS ANDIMPLIED WARRANTIES;

3. INSPECTION: HAVE CUSTOMERS DOCUMENT THEIR INSPECTIONS IN WRITING(INSPECTIONS GENERALLY WAIVE CLAIMS FOR DEFECTS A REASONABLEINSPECTION SHOULD REVEAL);

4. INCIDENTAL AND CONSEQUENTIAL DAMAGES: INCLUDE A CONTRACTUALWAIVER OF INCIDENTAL AND CONSEQUENTIAL DAMAGES;

5. REPAIR AND REPLACEMENT: INCLUDE A RIGHT OF THE LESSOR TO REPAIR ORREPLACE ANY ITEM(S) THAT PROVE(S) DEFECTIVE, AND MAKE THAT REMEDY“EXCLUSIVE;”

6. LIABILITY LIMIT: INCLUDE A CONTRACTUAL UPPER LIMIT OF THE LESSOR’SLIABILITY TO THE BUYER / LESSEE;

7. JURISDICTION AND VENUE: INCLUDE LOCAL JURISDICTION AND VENUEPROVISIONS;

Page 11: “IT IS CRITICALLY IMPORTANT TO SAY THE RIGHT THING IN … · 1/8/2018 1 Attorney and Author 9777 Pyramid Ct. #225, Englewood, CO 80112 (866) 582-2586 j.waite@wwlegal.net “IT IS

1/8/2018

11

But Wait . . .

. . . “BREACH OF CONTRACT” LIABILITY IS ONLY PART 1 OF A 2-PART LIABILITY

ANALYSIS (AND IT’S GENERALLY THE SMALLER PART) . . .

PART 2.A.: TORT LIABILITY

A BROAD FORM OF NON-CONTRACT LIABILITY FOR “CIVIL

WRONGS” SUCH AS “NEGLIGENCE” AND/OR “PRODUCTS LIABILITY”

Common Tort Liability Claims

1. NEGLIGENCE (ORDINARY OR GROSS)“THE OMISSION TO DO SOMETHING WHICH A REASONABLE PERSON,GUIDED BY THOSE ORDINARY CONSIDERATIONS WHICH ORDINARILYREGULATE HUMAN AFFAIRS, WOULD DO, OR THE DOING OFSOMETHING WHICH A REASONABLE AND PRUDENT PERSON WOULDNOT DO.” BLACK’S LAW DICTIONARY, © WEST PUBLISHING (1991)

2. PRODUCTS LIABILITYa) NEGLIGENCE (PRODUCTS LIABILITY)b) BREACH OF WARRANTYc) MISREPRESENTATIONd) STRICT LIABILITY (INCLUDING FAILURE TO WARN)

Limiting/Avoiding Negligence Claims: i. SATISFY IMPLIED DUTIES (INSPECT; INSTRUCT; WARN);

ii. DOCUMENT YOUR OWN INSPECTIONS;

iii. DOCUMENT CUSTOMERS’ RECEIPT OF INSTRUCTIONS;

iv. DOCUMENT CUSTOMERS’ RECEIPT OF WARNINGS;

v. HAVE CUSTOMERS DOCUMENT THEIR INSPECTIONS IN WRITING;

vi. WARN CUSTOMERS (IN WRITING) TO LIMIT USE OF EQUIPMENT TO THE“MANUFACTURER’S INTENDED USE” (“MISUSE” CAN BE A VALUABLE DEFENSE);

vii. INCLUDE AN INDEMNITY PROVISION (REMEMBER 3RD PARTIES CAN ALSO SUEYOU FOR NEGLIGENCE; “TORT” CLAIMS DO NOT REQUIRE “PRIVITY OFCONTRACT”);

viii. REMEMBER, YOU CANNOT WAIVE LIABILITY FOR NEGLIGENCE IN MOST CASES,BUT IN MANY, YOU CAN SHIFT LIABILITY TO OTHERS.

Page 12: “IT IS CRITICALLY IMPORTANT TO SAY THE RIGHT THING IN … · 1/8/2018 1 Attorney and Author 9777 Pyramid Ct. #225, Englewood, CO 80112 (866) 582-2586 j.waite@wwlegal.net “IT IS

1/8/2018

12

But Wait . . .

. . . “NEGLIGENCE” LIABILITY IS ONLY PART 1 OF A 2-PART

TORT LIABILITY ANALYSIS (AND IT’S GENERALLY THE

SMALLER PART) . . .

PART 2.B.: PRODUCTS LIABILITYA BROAD FORM OF NON-CONTRACT LIABILITY

THAT PERMITS PLAINTIFFS TO HOLD EVERYONE UP THE “CHAIN OF DISTRIBUTION” LIABLE FOR

“DEFECTS.”

What is Products Liability?

DEFINITION:A legal theory which permits injured parties to sue theproduct manufacturer AND all other parties in the“chain of distribution” (including sellers and lessors),for injuries and damages arising from or in connectionwith the use of an allegedly defective product.JAMES R. WAITE, ESQ.

In Other Words:The plaintiff now doesn’t necessarily need to show that you did something wrong; only that

the plaintiff was harmed by a defective product and that the Seller or Lessor was in the “chain of distribution.”

Restatement (Second) of Torts, § 402A

MEDIAN(1) AND AVERAGE PERSONAL INJURY JURY AWARDS BY TYPE OF LIABILITY, 2015

Liability Awards“What are the Damages?”

Source: Thomson Reuters.

Page 13: “IT IS CRITICALLY IMPORTANT TO SAY THE RIGHT THING IN … · 1/8/2018 1 Attorney and Author 9777 Pyramid Ct. #225, Englewood, CO 80112 (866) 582-2586 j.waite@wwlegal.net “IT IS

1/8/2018

13

Limiting / Avoiding Products Liability Claims:FOLLOWING ARE SOME ISSUES THAT SHOULD BE ADDRESSED IN “TERMS OF SALE” AND/OR “LEASE TERMS AND CONDITIONS”:

• Acknowledgment: Lessor is not the manufacturer of the equipment

• Acknowledgment: Lessor is not the designer of the equipment

• Acknowledgment: Lessee/Customer has received all of the manufacturer’s instructions and warnings.

• Post: Warning Signs: Including the Need to Evacuate in the Event of Severe Weather

• Acknowledgment: Lessee/Customer has carefully examined, inspected and tested the equipment and found it to be in good working order, condition and repair.

• Acknowledgment: Item(s) are leased “As-Is” and/or “With All Faults”

• Waiver: Of all warranties, express and implied

• Limitation: Of Customer’s remedies and damages (e.g., repair and/or replacement), and make the stated remedies “EXCLUSIVE”

• Indemnity: Include the Customer’s obligation to indemnify the Lessor for all claims

• Waiver: Of incidental, consequential, general, special, exemplary and punitive damages (to the extent permitted under applicable law).

Warning Signs:

Post Warning Signs In and/or On Tents:

INSURANCE REQUIREMENTSWHAT SHOULD BE REQUIRED OF LESSEES?

1. INSURANCE: TRY TO ENSURE LESSEES SHOULD PROVIDE AT LEAST THE FOLLOWING (SPACE PERMITTING)

a) PUBLIC OR COMMERCIAL GENERAL LIABILITY (AT LEAST $1 MILLION)

b) PROPERTY DAMAGE / INLAND MARINE (OR EQUIVALENT) – REPLACEMENT COST OR ACV:

2. INSURANCE (OTHER TYPES, AS NECESSARY):a) UMBRELLA LIABILITY

b) WORKERS’ COMPENSATION

c) HIRED AUTO PHYSICAL DAMAGE / LIABILITY

3. ADDITIONAL REQUIREMENTS:

i. INSURER(S) ACCEPTABLE TO LESSOR (RATED A- OR BETTER BY BEST’S)

ii. ADDITIONAL INSURED

iii. LOSS PAYEE

iv. CLOSED CLAUSE BASIS

v. ATTORNEY-IN-FACT STATUS

vi. LIMIT DEDUCTIBLE

vii. NON-CANCELABLE (OR AT A MINIMUM, NOTICE TO LESSOR)

viii. SEVERABILITY OF INTERESTSix. SCHEDULED: ON LEASED EQUIPMENT FLOATER (COVERS PROPERTY THAT IS MOVED).

4. LESSEE MAY INSIST THAT INSURANCE BE PROVIDED BY LESSOR – NEGOTIATION ISSUE

Page 14: “IT IS CRITICALLY IMPORTANT TO SAY THE RIGHT THING IN … · 1/8/2018 1 Attorney and Author 9777 Pyramid Ct. #225, Englewood, CO 80112 (866) 582-2586 j.waite@wwlegal.net “IT IS

1/8/2018

14

OPTIONS/ALTERNATIVES(LIABILITY CLAIMS)

1. Insurance (Liability, Products-Completed Operations, Umbrella, etc.). Maintain your own liability coverage, AND

require your customers to maintain their own and to name you as an “additional insured.”

2. Limit Representations and Warranties (Limit or eliminate language from advertisements and websites

that includes promises, and make sure your salespeople limit the promises they make).

Note: Many states now require manufacturers to provide warranties on all new equipment.

3. Write Careful Documents Do not attempt to practice medicine or law on yourself. Remember, it’s not

about being able to write a coherent sentence; it’s about knowing the law and how to use it to your advantage;

4. Limit Contract Modifications (always include language “objecting to” handwritten changes);

5. Carefully Inspect All Equipment You Sell or Lease to ensure it is not damaged or defective;

6. Familiarize Customers and Provide All Manufacturers’ Instructions and Warnings(include a written acknowledgment of the customer’s receipt, and have the customer sign it;

7. Never Remove or Paint Over Safety Placards/Warnings (Doing so can expose you to negligence

and strict liability claims for “failure to warn” of potential hazards).

8. Limit In-House Equipment Modifications (Strict Liability claims for design and/or manufacturing defects).

WHY SHOULD I WORRY? MY INSURANCE COVERS IT, RIGHT?

THERE ARE SOME DRAWBACKS:• DAMAGE/INJURY CLAIMS

• VALUES HIGHER THAN YOUR INSURANCE COVERAGE LIMITS

• DAMAGED EQUIPMENT • YOU STILL OWE YOUR DEDUCTIBLE

• PAID CLAIMS• INSURANCE RATES MAY INCREASE

• BREACH OF CONTRACT ALLEGATIONS• NOT COVERED BY INSURANCE

• EPA FINES• NOT COVERED

• EQUIPMENT DOWNTIME• NOT COVERED (IN MANY CASES)

WHEN RELYING ON INSURANCE• IS IT ADEQUATE?

• DO I WANT TO RELY SOLELY ON IT?

PARTICULARLY, IF I DON’T HAVE TO.

ANSWER:

OF COURSE NOT.

WHAT’S THE WORST THAT COULD HAPPEN?

NEGOTIATING DO’S AND DON’TS:DO: INSIST ON RETAINING (DO NOT DELETE): INCLUDE (WHENEVER POSSIBLE) THE FOLLOWING PROVISIONS:

- WARRANTY WAIVER

- CUSTOMER’S ACKNOWLEDGMENT OF RECEIPT OF INSTRUCTIONS AND WARNINGS

- CUSTOMER’S ASSUMPTION OF RENTAL-RELATED RISKS

- CUSTOMER’S WAIVER OF INCIDENTAL AND CONSEQUENTIAL DAMAGES

- LEGAL AND PROPER USE REQUIREMENT

- PROHIBITION ON SUBLEASING OR ASSIGNING EQUIPMENT WITHOUT YOUR APPROVAL

- HOLD HARMLESS PROVISION

- INDEMNITY PROVISION (WHERE POSSIBLE – NOT WITH MOST GOVERNMENTAL AGENCIES)

Page 15: “IT IS CRITICALLY IMPORTANT TO SAY THE RIGHT THING IN … · 1/8/2018 1 Attorney and Author 9777 Pyramid Ct. #225, Englewood, CO 80112 (866) 582-2586 j.waite@wwlegal.net “IT IS

1/8/2018

15

NEGOTIATING DO’S AND DON’TS:

DO NOT ADD THE FOLLOWING PROVISIONS, EVEN IF THE CUSTOMER REQUESTS YOU DO SO:

- WAIVER OF YOUR MECHANIC’S LIEN RIGHTS

- WAIVER OF YOUR RIGHT TO INSPECT AND MONITOR YOUR EQUIPMENT;

- WAIVER OF YOUR RIGHT TO REPOSSESS RENTED EQUIPMENT

- WARRANTIES BY THE SELLER/RENTAL COMPANY

- INDEMNITY OBLIGATIONS OF SELLER/RENTAL COMPANY

- OBLIGATION OF THE RENTAL COMPANY TO REPAIR EQUIPMENT

- DOLLAR AMOUNT LIMITATIONS ON YOUR CLAIMS

- TIME DEADLINES FOR SUBMISSION OF YOUR CLAIMS

- A REQUIREMENT THAT THE CUSTOMER “APPROVE” YOUR CLAIMS BEFORE BEING REQUIRED TO PAY THEM.

NEGOTIATING DO’S AND DON’TS:NEVER DO THE FOLLOWING IF YOU CAN AVOID IT:

1) USE A CONTRACT FORM PROVIDED BY A PRINTER OR BY A SOFTWARE COMPANY;2) REPLACE YOUR RENTAL CONTRACT WITH THE CUSTOMER’S CONTRACT;3) SIGN THE CUSTOMER’S PURCHASE ORDER THAT SAYS “ADDITIONAL TERMS ON REVERSE SIDE”

UNLESS YOU’VE REVIEWED THEM CAREFULLY;4) PERMIT A CUSTOMER TO DELETE PROVISIONS FROM YOUR CONTRACT WITHOUT CAREFULLY

REVIEWING AND UNDERSTANDING THE EFFECT OF THE DELETION(S);5) PERMIT A CUSTOMER TO “RUBBER STAMP” YOUR RENTAL CONTRACT (SOME SUCH STAMPS SAY

“TERMS AND CONDITIONS AS PROVIDED IN CUSTOMER’S P.O.”);6) PERMIT THE CUSTOMER TO MAKE NOTATIONS ON YOUR RENTAL CONTRACT (PARTICULARLY

NOTATIONS SUCH AS “FOR RECEIVING PURPOSES ONLY” WHICH CAN NULLIFY YOUR CONTRACTENTIRELY AND CONVERT IT TO A “PACKING LIST”);

7) PERMIT A CUSTOMER TO ATTACH THE CUSTOMER’S OWN “TERMS AND CONDITIONS” TO YOURCONTRACT;

8) PERMIT A CUSTOMER TO TAKE POSSESSION OF RENTED EQUIPMENT WITHOUT HAVING SIGNEDYOUR RENTAL CONTRACT (PARTICULARLY IF THERE IS ANY QUESTION AS TO WHOSE CONTRACTCONTROLS).

“LIFE’S TRAGEDY IS THAT WE

GROW OLD TOO FAST, . . . AND

WISE TOO LATE.”BENJAMIN FRANKLIN

Page 16: “IT IS CRITICALLY IMPORTANT TO SAY THE RIGHT THING IN … · 1/8/2018 1 Attorney and Author 9777 Pyramid Ct. #225, Englewood, CO 80112 (866) 582-2586 j.waite@wwlegal.net “IT IS

1/8/2018

16

JAMES R. WAITE, ESQ.

RENTAL/SALE CONTRACTS: ADDENDA:• TENTS AND EVENT EQUIPMENT * DAMAGE WAIVER / GUIDE

• HOMEOWNER EQUIPMENT * AWPS (FALL PROTECTION)

• CONSTRUCTION EQUIPMENT * TIER 4 / STAGE IV

• VEHICLES AND TRAILERS * SAFETY RULES

• MASTER (LONG-TERM) LEASES * DANGEROUS EQUIPMENT

JAMES R. WAITE, ESQ.

• “I’ve had other attorneys work on my Terms and Conditions before, but after James tightened up all the holes it was apparent that he really understands the rental industry. Thanks James!”Phil Gottula, Owner: Flexx Productions

• “Thank you, and it was a pleasure to work with you. Your company is extremely efficient, easy to work with and very accessible. Mr. Waite explains everything clearly, allows time for any questions, and provides the requested information/items very quickly. It’s a pleasure to work with an attorney who understands the rental equipment business and it makes the process much easier.”Chris Quillen: Grand Rental Station

• “James, thank you for a job well done! All aspects of your services were professional, thorough and timely. Your critical eye for understanding and responding to the unique challenges of the rental industry was exceptional. The deliverables received exceeded our expectations in every measureable area. We are eager to share with our partners the quality product and clarity you brought to Main Attractions. Again, thank you for a job well done!”KMB, Chief Executive Officer: Main Attractions Inc.

• “With rental contracts, details make all the difference between being vulnerable or protected. James Waite has a firm grasp on potential threats in our industry and knows how to cover those in written agreements.“Allen McCandless: Commercial Tent Rentals and Sales Limited

• “Nancy and James were great and so easy to work with. Very prompt. James told me things that I needed to include in my contract and explained why they were important. He definitely spent his time with me. I would recommend him to everyone, even if you already have a contract in place.”Ken Bernard, Owner: Fun Services

• “We are very satisfied with the contract that Mr. Waite wrote for us. The personal guarantee that we added to the contract may very well enable us to recover a substantial amount of money that we likely would not have recovered otherwise. James knew what questions to ask so that we got a contract specifically tailored for our business.”Jeff Johnstone, President: Party Perfect

James R. Waite, Esq.O: (866) 582-2586M: (303) 921-0478

[email protected]