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- Tunkl. v. Regents of the University of California [1] was a leading case in California that established a persuasive six-factor test that helps guide courts to decide when a contract relates to the "public interest." Specifically, California courts had a history of holding exculpatory liability waivers within contracts to be valid only if they did not involve the "public interest." This case history arose in relation to Cal. Civ. Code §1668, a statute that states "All contracts which have for their object, directly or indirectly, to exempt anyone from responsibility for his own fraud, or willful injury to the person or property of another, or violation of law, whether willful or negligent, are against the policy of the law." Cal. Civ. Code § 1668. At the time, it was difficult to gauge exactly what the courts meant by interpreting this statute to apply fervently to contracts "in the public interest." Tunkl helped clarify this, though there is still a debate as to how many of the six factors must be met, or whether certain factors should be read to be subservient to others. According to Tunkl, the six factors that determine, in the instance, whether a contract relates to the public interest are:(1) It concerns a business of a type generally thought suitable for public regulation.(2) The party seeking exculpation is engaged in performing a service of great importance to the public, which is often a matter of practical necessity for some members of the public. (3) The party holds himself out as willing to perform this service for any member of the public who seeks it, or at least for any member coming within certain established standards. (4) As a result of the essential nature of the service, in the economic setting of the transaction, the party invoking exculpation possesses a decisive advantage of bargaining strength against any member of the public who seeks his services.(5) In exercising a superior bargaining power the party confronts the public with a standardized adhesion contract of exculpation, and makes no provision whereby a purchaser may pay additional reasonable fees and obtain protection against negligence.(6) Finally, as a result of the transaction, the person or property of the purchaser is placed under the control of the seller, subject to the risk of carelessness by the seller or his agents. If a contract both meets these factors and includes liability waivers, it may be held to be invalid and unenforceable as a matter of law and policy. (en)
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- 7483 (xsd:nonNegativeInteger)
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- Olga TUNKL, as Executrix of the Estate of Hugo TUNKL, Deceased, Plaintiff and Appellant, v. The REGENTS OF the UNIVERSITY OF CALIFORNIA, Defendant and Respondent (en)
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- A release from future negligence liability imposed as a condition for entry to a charitable hospital is invalid as a matter of public policy, under Cal. Civ Code §1668, which prohibits exempting a person from fraud, willful injury, or violation of law in contexts that affect the public interest. (en)
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- Gibson, Traynor, Schauer, McComb, Peters, Peek (en)
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- Tunkl v. Regents of the University of California (en)
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- Appeal from judgment for defendant (en)
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- Tunkl. v. Regents of the University of California [1] was a leading case in California that established a persuasive six-factor test that helps guide courts to decide when a contract relates to the "public interest." If a contract both meets these factors and includes liability waivers, it may be held to be invalid and unenforceable as a matter of law and policy. (en)
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- Tunkl v. Regents of the University of California (en)
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