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29 March 2013

Routledge Modise

Joint and several liability for events organisers of Sports and Recreation, through the promulgation of the SASREA has now placed the responsibility of ensuring safety and security at events on the shoulders of control­ling bodies, event organisers and stadium/venue owners. Given the spirit of the Act, it is evident that these entities will be jointly and severally liable in the event of any civil liability (the "SASREA"), to address the inadequacies which have been prevalent in many sports and entertainment events.

This is according to Deon Francis of Routledge Modise Inc. "Some of these inad­equacies include insufficient emergency and essential services, insufficient resources being made available by local authorities, inadequate public liability insurance, a lack of proper safety certification and structural engineering certifi­cates for temporary structures, a lack of proper safety and security measures including crowd control at events. Much of the flouting of these require­ments has been driven by the fact that enforcement of puni­tive measures to ensure proper safety and security measures at

South Africa's stature as a world-class destina­tion for large sporting events, most notably the recent Afcon Cup and the Soccer World Cup before that, is growing tremendously. Given this status, there is increasing scrutiny by regula­tors, noted in the recently promulgated Safety at Sports and Recreational Events Act events has been left wanting, but these days are long over. An event that is found to be lacking in proper controls and safety measures could find all involved coordinating parties from organisers, sponsors, venue operators and owners all held liable for any damages and legal claims," warns Francis. In order to address these inadequacies the Department arising at any given event.

"Joint and several liability is a form of liability that is used in civil cases where two or more parties are found liable for damages. The injured party in such a case may seek pay­ment of the entire judgment from any one of the parties who are said to be jointly and severally liable. In other words, if any of the defendants do not have enough money or assets to pay an equal share of the award, the other defendants must make up the difference," he explains.

Although the SASREA provides for various duties and obligations on each of the enti­ties, in the event of a disaster occurring and injury to indi­viduals, those injured parties may choose to sue any of the entities as reflected in section 4 of the SASREA whether or not there was fault on the part of that party. For instance, if an injury has occurred as a result of insufficient barricad­ing being available, whilst that may be the venue owner's obligation, the injured may choose to hold the controlling body or the event organiser liable. Those parties cannot deny responsibility on the basis that the barricading was the re­sponsibility of the venue owner as the SASREA has placed a burden on all the entities to ensure safety and responsibility at events.

Dani Ettridge, of Aon South Africa, adds that SASREA has serious implications in terms of insurance liability cover.

"SASREA has a very similar effect as the Consumer Protec­tion Act. In terms of the CPA, where damages arise as a result of defective products, consum­ers can seek recourse against any one of the parties in the supply chain, be it the manu­facturer, the wholesaler or the retailer. Similarly, in terms of the SASREA, in the event of individuals being injured at events, they can choose to seek recourse against any of the stakeholders in the event, be that a sponsor, a supplier or indeed an advertiser. It would then be for the parties to sort out amongst themselves who should be liable and to what extent. This would not affect the injured party though in that the injured party could look to any of these entities for compensation," she says.

"Crucially, sponsors should also ensure that they have ad­equate events liability in place with an insurer who is aware of their exposure in this regard, and not rely on a standard business public liability policy. Each stakeholder must ensure protection by way of a policy in their own name and not rely on cover arranged for the other parties," explains Ettridge.

One of the major concerns coming out of the industry is that the regulatory change imposes harsh penalties, and there is a lot of uncertainty as to how this legislation will be interpreted and how the requirements can be incorpo­rated into pre-event planning.

"Without precedent there is always the fear of being the proverbial guinea pig in a test case. It is essential to cover all your bases and make sure you have adequate liability covers in place for any eventuality."

The team

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