California Court of Appeals Upholds Validity of Participant Release Forms in Hazardous Recreational Pursuits.

SALT LAKE CITY--(BUSINESS WIRE)--June 19, 1995--Rick Lindsey, president of Evolution Insurance Group, Inc., commented today on a recent decision by the California Court of Appeals in the matter of (Evolution client) Whitewater Voyages, Inc. v. the Superior Court of Contra Costa County.

The decision, filed May 16, 1995, in Division Four of the First Appellate District of the Court of Appeal of the State of California, upheld the validity of participant release forms in hazardous recreational pursuits and reaffirms the position previously set forth by the California appellate court earlier this year in the matter of Diane Ferrari v. Grand Canyon Dories, et al (February 10, 1995). In the latter case, the court also entered summary judgment in favor of the company.

In each case the plaintiff had signed a release form, which the court found constituted an express assumption of risk. Evolution Insurance Group, Inc., which provides customized insurance and risk management for so-called "stressed" lines--including professional liability insurance for recreational outfitters and guides--was instrumental in bringing both cases before the appellate court for summary judgment.

"Evolution Insurance Group, Inc. has been since its inception a strong proponent of safety training and preventative measures, as well as the use of participant release forms that set forth risk to the participant," said Rick Lindsey. "While these recent cases represent positive rulings for our specific clients, they also help set an important precedent concerning risk management and the use of release forms. They are most certainly a step in the right direction toward controlling the high cost of personal injury claims arising from participation in hazardous recreational activities," said Lindsey.

Lindsey said that he agrees with the writ of the court in National and International Brotherhood of Street Racers, Inc. v. Superior Court (1989) 215 Cal.App.3d 934, 938), which stated in part, "Defense costs are devastating. Unless courts are willing to dismiss such actions without trial, many popular and lawful recreational activities are destined for extinction." According to Lindsey, Evolution will, in its ongoing effort to control insurance costs, continue to press for the dismissal of complaints that disregard release forms, as a way of discouraging inappropriate and frivolous lawsuits.

Evolution Insurance Group, Inc. is a privately held holding company, which through its subsidiaries provides customized insurance and risk management and specializes in group liability insurance for so-called "stressed" industry and professional groups. Evolution's underwriting approach is based upon industry-specific professional guidelines and incorporates re-engineered methods of claims management, including aggressive and expeditious defense against excessive, inappropriate and unwarranted personal injury claims.

CONTACT: Evolution Insurance Group, Inc., Salt Lake City

Rick J. Lindsey or Steven R. Love, 801-944-3250

or

Jordan Richard Assoc., Salt Lake City

Madeleine Franco or Richard Bernot, 801/595-8611