3 year old drowning and lawsuit

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While I have sympathies towards the sailing school, I also fee that children this young should not be on a Hobie cat, rather something more stable.
"A copy of the waiver, signed by Daniela Howell, was included in the court filings and said: “In consideration of the agreement of Longshore Sailing School, Inc, to rent a boat to me, I agree to release, indemnify and hold harmless Longshore Sailing School, Inc . and all of its employees in the event of any accident, damage or injury resulting from my use of the boat.” "

Daniela was not "using" the boat.. imo

the word "using" to me in this context would apply to actually sailing the boat, not for paying to rent it for her instructor.
In many places those liability waivers aren't worth the paper there written on, especially if it can be proven that the service provider was negligent. I suppose if the cat was rented and the rentor knew a 3 year old was going out on the boat, and the conditions were on the rough side that might show some negligence. Unfortunately the only person who is going to benefit from all this is some lawyer.