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THE RACERS EDGE

THE LEGAL SIDE OF THE TRACK PROMOTION
The following questions from track promoters and the answers were provided courtesy of RPM Newsletter.

(Disclaimer: While answers to legal questions have been researched, we do not represent them as legal advice. Laws vary in different jurisdictions. Readers should contact attorneys in their area in all matters. RPM (and e-KMI.com) assumes no responsibility for actions taken as a result of, or in spite of, answers appearing herein.)

QUESTION: Am I free to single out and criticize a driver during the driver’s meeting or can I be accused of libel or slander?

ANSWER: You ask a question that is as much a question of common sense and common courtesy as it is a legal question. It’s generally unwise to criticize people before an audience, and better to handle sensitive discussions on an individual basis. It’s wisest, in public, to discuss incidents in terms of circumstances and rules, keeping personalities and specifics out of the discussion. Charges of libel and slander are hard to prove, but that’s no reason to throw caution to the wind. Legal defense against any charge is risky and costly. Racing can be emotional and officials can lose their tempers, let frustration and pressure get to them, or let personalities interfere. When they do, they often say things that put the track and its owners at risk. We have seen tracks sued because statements made by officials led entrants to conclude that the promoter, the track or an official, was prejudiced against them. That’s not good and tracks have paid dearly in bad PR, legal fees and business disruption. Our best advice: Keep personalities out of it. Treat everyone respectfully. You’ll stay out of trouble.

QUESTION: RPM often recommends licensing drivers. Refresh my memory about why you do that?

ANSWER: In short, licensing entrants protects your track and creates a revenue stream. The contract created between your business and the entrant is actually more important than any revenue. The language in sanctioning group license agreements creates a relationship between the entrant and the sanction not your track. By buying a license and signing your application, entrants agree to many details of business too numerous to list here. Most important, they warrant that they are independent contractors, that they will abide by track rules and track officials’ decisions. Most rules of competition are written by speedways, not sanctioning groups, and probably half the class rules as well. These rules are where controversy arise and suits are born. The license gives insurers and attorneys a strong defense when they must persuade juries and judges, who are unfamiliar with racing’s parochial way of doing things. RPM offers a blank form license that tracks may adopt to their needs. Request it by e-mail (racepromomonthly@centurytel.net) or telephone (920-294-0830).

QUESTION: We read about the effect of law suits on our insurance, but what is the chief cause of claims at speedways?

ANSWER: Insurers told promoters at the recently concluded RPM Workshops that most claims result from unspectacular incidents. The biggest claim producers have mundane causes such as bleacher falls and debris thrown into seat, striking patrons. Walkway and parking area slips, trips and falls are a close third. Afterward, not necessarily in order, come liquor liability and claims related to restricted area activities, ranging from incidents with ATV’s and speeding cars, to the headline-grabbing claims resulting from accidents during competition. Historically, the biggest claim producers have always been the day-to-day problems that result from hosting the public, and all the trouble patrons can find themselves in, now made worse by the glut of hungry plaintiff’s lawyers, who use minor incidents and injuries as the basis of suits. Insurers have long urged promoters to pay utmost attention to the details of risk management, fixing risks such as slip and trip hazards, training employers to work more safely, installing bleacher kick boards, cabling, barriers, and other potential causes of claims.

Next month: More track promoter questions answered.

The above was used with permission of RPM – Racing Promotion Monthly. For more information about RPM, see www.racingpromotionmonthly.net or call 920-294-0820.

END

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