Tunkl v. Regents of University of California

383 P.2d 441 · California Supreme Court · 1963

Facts

Hugo Tunkl was admitted to the University of California Los Angeles Medical Center, a nonprofit charitable research hospital. As a condition of admission, he signed a document releasing the hospital from liability for negligence, provided it used due care in selecting employees. Tunkl later sued for injuries allegedly caused by physician negligence, and after his death, his wife continued the suit. The trial court upheld the release's validity, and the plaintiff appealed.

Issue

Is an exculpatory provision in a contract for admission to a charitable research hospital, which releases the hospital from liability for future negligence, valid under Civil Code section 1668, or does it affect the public interest and thus render the provision invalid?

Holding

The Supreme Court reversed the trial court's judgment, holding that the exculpatory provision was invalid. The court found that the agreement between the hospital and the patient affected the public interest, making the release unenforceable under Civil Code section 1668.

Rule

An exculpatory clause is invalid under Civil Code section 1668 if the contract involves a transaction that affects the public interest. Such a transaction typically involves a business suitable for public regulation, performing an essential service, holding itself out to the public, possessing a decisive bargaining advantage, presenting a standardized adhesion contract, and placing the purchaser under the seller's control.

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