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Tillie joins a local private fitness center and enrolls in a team-resistance-band workout class to increase her strength, mobility and balance. As part of her enrollment in the training class, Tillie was required to sign a liability release form in which she agreed that the gym would not be liable for any injuries that Tillie might incur or suffer while participating in the training class, even if the injuries resulted from the negligence of the gym, its instructor, the equipment or other participants in the training class. Tillie was paired with Martha Bouvier for the class. During one of paired workouts, Tillie and Martha stood opposite each other while each pulling their handle of a two-handled resistance band toward them. Martha unexpectedly let go of the band during the exercise. The band snapped and the Martha's plastic handle hit Tillie in the face causing her nose to be broken. Tillie sued the gym and Martha for damages resulting from her broken nose . Tillie argues that the gym is liable for her injuries because the class instructor was negligent in instructing the individual participants how to perform the different band exercises. Tillie argues Martha is also liable for her injury for negligently letting go of the resistance band during the exercise. Both th gym and Martha claim no liability because Tillie signed the liability release . You are the judge . Who wins? Explain .
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Advise what tax consequences arise in respect of the payments.
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