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1995 WL 681532
Tags: Capacity
tl;dr:
Signing a rehab center's waiver disclaiming their tort liability while intoxicated may render that contract voidable.Case Summary
In the 1995 case Ervin v. Hosanna Ministry, Inc., Jacqueline and Curtis Ervin sued a rehab center and its owner for personal injuries and fraud. Jacqueline had slipped on a wet floor while in the rehab program for substance abuse problems. The couple claimed that the center had lied about its qualifications to treat addiction.
Hosanna Ministry argued that Jacqueline had forfeited her right to sue by signing a liability release upon entering the program. The Ervins countered that due to her intoxicated state, Jacqueline could not understand the release when she signed it.
The court decided that a trial was needed to determine if Jacqueline understood the release and if the rehab center had lied to her about its qualifications. This case is an example of the legal concept of capacity, meaning whether a person can understand the consequences of a contract they are entering.
Generally, those found to be intoxicated, minors, or mentally incapacitated may be exempt from contract obligations to protect them from being exploited when their decision-making is impaired. However, exceptions exist, such as contracts for essential goods or when an individual regains their capacities and confirms the contract.
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