Attorneys: Disclaimers could limit liability

By
|

WASHINGTON -- A specific, clearly worded disclaimer signed by a client could help limit a travel agency's exposure to consumer lawsuits, according to several top attorneys speaking during a daylong travel law symposium jointly sponsored by ARTA and Travel Weekly with MasterCard International.

The lawyers noted, however, that although disclaimers bolster an agency's ability to fend off lawsuits, most firms do not use them.

"It is somewhat astounding that disclaimers are still not used [and] how lawsuits could have been prevented by taking a few simple steps," Mark Pestronk, travel attorney and Travel Weekly columnist, said.

Framington, Mass.-based attorney Rodney Gould of Rubin, Hay & Gould said the disclaimer should spell out that some travel services are provided by a supplier and that the client agrees to settle any claims through arbitration, rather than a potentially expensive and time-consuming lawsuit.

ARTA's legal counselor, Alexander Anolik, said that without a disclaimer, "you are asking for it."

Gould estimated a travel agency has a one-in-10 chance of being sued by a client. Students, honeymooners and inexperienced travelers are more likely to sue than veteran travelers.

Many of the lawsuits emerge from seemingly simple problems that, if handled expeditiously, might not have mushroomed out of control, Gould said. Others involve disputes that border on the outrageous.

For instance, Gould said one of his agency clients was sued by a honeymoon couple who lost a piece of luggage while traveling through Italy.

"The complaint was that the birth control devices were in the suitcase, so they had to abstain from sex for the rest of the honeymoon," Gould said.

In another instance, a couple traveling in Mexico were moved from their beachfront hotel to a safer property farther inland by government officials because of a hurricane.

During the hurricane, the client left his inland hotel room to complain to the manager about the accommodations. "While he is out in the rain yelling at the manager, he falls. So what does he sue the travel agent for? His injury -- because he fell while yelling at the manager," Gould said.

Typically, agents don't lose these types of cases, according to Gould. But they can drag on in court, tapping the agency's financial resources and time.

Disclaimers are important, Gould said, because "the motto of the plaintiff's bar is that for every injury someone must pay and usually that somebody is close to where the plaintiff is," which means the travel agent.

The attorneys suggested that agents have clients sign disclaimers or waivers when they choose to disregard the agent's recommendations.

But attorneys warned retailers not to present themselves as experts on such topics as current visa requirements for certain countries or the latest information on communicable diseases in different regions of the world, especially if they are not. "Agents can expect a big mess if they try to fake their way through advice," Pestronk said.

Rather than fake it, Anolik said, agents should, as part of a disclaimer, direct their clients to experts such as the State Department and the Centers for Disease Control and Prevention or other government agencies.

"Get the ball out of your court and into theirs," Anolik said, "because they will lie when they go to court, so help your attorney and yourself by having clients sign disclaimers."

From Our Partners


From Our Partners

Worry-Free Access to the World - Part 1
Worry-Free Access to the World - Part 1
Register Now
Sponsored Video: New Orleans on Cruises and Advisor Perks
Sponsored Video: New Orleans on Cruises and Advisor Perks
Read More
Sell More, Your Way: Real-World Avanti Success Stories with Two Top Advisors
Sell More, Your Way: Real-World Avanti Success Stories with Two Top Advisors
Register Now

JDS Travel News JDS Viewpoints JDS Africa/MI