You’ve seen the sign a million times: “Cars Parked at Owner’s Risk.” Whether it’s at your favorite shopping mall, outside a restaurant, or in a commercial parking lot, it seems like a catch-all warning meant to tell you, “If something happens to your car, don’t blame us!” But have you ever wondered how effective that sign really is? Can businesses and property owners in Nigeria truly wave away their responsibility with a simple sign?
In this edition of the Lawpadi newsletter, we’re diving deep into the world of disclaimers and exclusions of liability to help you understand how this work, when they are valid, and what the law says about protecting your rights.
What’s the Deal with Disclaimers and Exclusions of Liability?
A disclaimer is essentially a statement that tries to limit a person’s or business’s legal responsibility for something that could go wrong. In the case of parking lots, the infamous “Cars Parked at Owner’s Risk” sign is a clear example of a disclaimer that tries to exclude the owner of the car park from liability if your car gets stolen or damaged.
An exclusion of liability clause is the legal term for this kind of disclaimer. It is typically used by businesses to shield themselves from potential claims by customers or visitors. But, like most things in law, it’s not that simple. Just because there’s a sign doesn’t mean the business is off the hook. Let’s break down when these disclaimers are valid and when they aren’t under Nigerian law.
Can a Simple Sign Really Make a Business Not Liable?
In Nigerian law, an exclusion of liability clause can be effective if it meets certain conditions. Just putting up a sign isn’t enough—there are rules businesses must follow to ensure their disclaimer holds water. Here’s what the law says:
Reasonable Notice of the Disclaimer
For any exclusion of liability to be valid, the business or occupier (e.g., the car park operator) has to give you reasonable notice before you park your car. In legal terms, this means the disclaimer must be made known to you clearly and early enough for you to make an informed decision about whether you want to park your car there. If you only see the sign after you’ve already parked, the business may not be able to rely on it to avoid liability.
The Disclaimer Must Be Clear and Unambiguous
Nigerian courts expect disclaimers to be clear and easy to understand. If the language used in the exclusion clause is vague or confusing, it might not hold up. For instance, a sign that says, “Cars Parked at Owner’s Risk” might need further clarification on what exactly the risk is—are they excluding liability for theft, damage, or both? If the disclaimer isn’t clear, a court may rule that it’s not valid. Disclaimers Cannot Exclude Liability for Gross Negligence Even if the disclaimer is clear and visible, businesses can’t use it to escape responsibility for gross negligence. Gross negligence means the business failed to take basic, reasonable steps to protect your property. For example, if a car park is in a poorly lit, insecure area, with no security measures like cameras or guards, and your car is stolen, a court may decide that the car park owner was grossly negligent and can’t rely on the disclaimer to avoid liability. Nigerian Law and Exclusion Clauses: How Do They Stack Up? On December 19, 1986, Justice K.O Anya (rtd) checked into the Imo Concorde Hotel. When it was time for him to leave the next day, he discovered that his car – a Peugeot 505 car, had been stolen from the hotel premises where he parked it the previous day. He sued the hotel management in court, on the grounds that they were negligent by allowing his car to get stolen. The Supreme Court held that a car owner who parked his car within premises where a caveat was boldly inscribed did so at their own peril. The Supreme Court went further to state that it is a generally accepted principle of negligence that a person only owes a duty of care to his neighbour who would be directly affected by his act or omission. Nigerian law doesn’t automatically enforce every exclusion of liability clause, particularly when it comes to consumer protection. The courts apply a reasonableness test to these disclaimers, meaning they will consider the specific circumstances to decide if the disclaimer is fair and just in the situation. For instance, let’s say a car park owner installs clear signs, has good lighting, security personnel, and CCTV cameras in place, and then your car gets scratched by another driver. In this case, a disclaimer might be considered reasonable, as the business took adequate precautions to ensure safety. The Role of Consumer Protection Laws In Nigeria, consumers are further protected by the Federal Competition and Consumer Protection Act (FCCPA). This law is designed to prevent businesses from imposing unfair or overly harsh terms on consumers, particularly when it comes to exclusion clauses. The FCCPA ensures that businesses can’t simply push all responsibility onto consumers without taking reasonable steps to provide safety. For example, if a car park owner tries to limit all liability, but hasn’t taken basic measures like securing the area or warning about specific risks, the courts may view the exclusion as unfair and invalidate it. The law balances the power between businesses and consumers, so businesses can’t always rely on disclaimers to avoid responsibility.
Conclusion: Should You Fear the “Cars Parked at Owner’s Risk” Sign? Not necessarily! While businesses try to use disclaimers to limit their liability, Nigerian law doesn’t allow them to escape responsibility that easily. For these disclaimers to be valid, they must meet specific legal standards, and businesses can’t use them to cover up negligence or unfair practices. The next time you see a “Cars Parked at Owner’s Risk” sign, remember that it doesn’t mean you’re automatically on your own if something happens. The law still expects businesses to protect their customers and act reasonably. If they fail to do so, the courts can invalidate the exclusion of liability and hold them responsible. If you find yourself in a situation where your car has been damaged or stolen, don’t hesitate to get legal advice. You might have more rights than that disclaimer suggests.
