By Lauren M. Law, Associate
The Pennsylvania Supreme Court recently ruled that parents who sign waivers at attraction parks do not have the authority to bind their children or spouses to arbitration agreements. In two related cases, the court found that parents cannot waive their minor children’s right to a jury trial by agreeing to arbitration for injuries that occur at trampoline parks. The decision stated that these waivers represent an unenforceable forfeiture of a minor’s property rights and cannot be executed by a parent acting solely as a natural guardian. Additionally, a parent’s signature does not obligate a non-signing parent unless there is specific evidence of an agency relationship, which cannot be assumed based solely on marital status.
In Santiago v. Philly Trampoline Park, LLC, t/a Sky Zone and Shultz v. Sky Zone, LLC, minor children suffered injuries while at Sky Zone trampoline parks in Pennsylvania. In both cases, adult customers were asked to sign a waiver and arbitration agreement, with only one parent signing on behalf of each child. After children experienced injuries at the park, their parents proceeded to file lawsuits against Sky Zone for negligence.
Sky Zone moved to enforce the arbitration agreements to prevent the cases from proceeding in court. In doing so, Sky Zone argued that the arbitration clause only changes the forum for resolving disputes and does not remove a minor’s substantive rights. The court rejected that view, holding that arbitration affects both the forum and the process. The Pennsylvania Supreme Court determined that a parent does not have the authority to unilaterally bind their child to an arbitration agreement. A parent, as a natural guardian, cannot waive a child’s rights via arbitration agreements. Therefore, a parent’s signature on such an agreement does not legally bind the minor to arbitration.
Additionally, the court held that one spouse cannot automatically bind the other to arbitration without evidence of agency. A principal agent relationship does not automatically arise from a marital relationship. A married person cannot sign away the legal rights of their spouse unless there is evidence that one had authority to act on the other’s behalf.
This is a significant decision on the enforceability of arbitration clauses in liability waivers signed by parents.
Key Rulings
Enforceability: Because the arbitration provisions are unenforceable against the minor child and the non-signing parent, the cases against Sky Zone can proceed in court.
Minor’s right to a jury trial: Parents are not permitted to enter into arbitration agreements on behalf of their minor children that waive the right to a jury trial. An arbitration agreement is classified as a forfeiture of a minor’s property right, and a natural guardian requires court approval to make such decisions.
Spousal agency: A marital relationship alone does not establish an agency relationship. Consequently, one parent’s signature on an arbitration agreement does not obligate the other parent to arbitrate unless evidence exists of a valid agency relationship.
