LIABILITY

Every licensee is responsible for the conduct within their licensed establishment, including the sale of alcoholic beverages by an employee.

Innkeeper Liability

The Minnesota innkeeper liability law includes provisions which allow an innkeepers (bar owner) to remove or refuse to admit obviously intoxicated persons. Inkeeper liability imposes a duty on bar owners to protect the patrons of the bar. If a patron is hurt on the bar’s premises, a bar owner may be held liable.

For inkeeper liability to apply the bar owner or any employee must have notice of the offending party’s dangerous propensities and there must have been an opportunity to protect the injured person. If the bar owner or any employee fails to take reasonable steps to protect the patron from injury, the bar owner may be held liable. A bar owner or employee has notice of a patron’s dangerous propensities from any of the patron’s previous dangerous activity witnessed by the bar owner or employee, or from any verbal altercations where obscene and aggressive language is used.

This can become problematic for a bar owner when fights occur within the bar’s premises. If any previous altercation occurred with the parties involved, the bar owner would likely be determined to have notice of the party/parties dangerous propensities and would therefore, be required to take reasonable steps to protect the patrons from injury. This law includes provisions which allow a bar owner or an employee to remove or refuse to admit obviously intoxicated persons. This is one of the main methods of dismissing your liability under the inkeeper liability law.

Dram Shop Act (Minnesota Civil Liability Act)

“A spouse, child, parent, guardian, employer, or other person injured in person, property, or means of support, or who incurs other pecuniary loss by an intoxicated person or by the intoxication of another person, has a right of action in the person's own name for all damages sustained against a person who caused the intoxication of that person by illegally selling alcoholic beverages. All damages recovered by a minor under this section must be paid either to the minor or to the minor's parent, guardian, or next friend as the court directs.”

The Dram Shop Act requires a cause of action to be brought within two years of the injury. In addition, this Act only applies to commercial vendors who sell alcoholic beverages.

In order to establish a successful cause of action under the Dram Shop Act, five elements must be established. First there must be an illegal sale of intoxicating liquor. Second the illegal sale must have caused or contributed to the allegedly intoxicated person’s intoxication. Third the intoxication must be a direct cause of the plaintiff’s injury. Fourth, the plaintiff must have sustained damages that are recoverable under the Dram Shop Act, and fifth, the commercial vendor of alcoholic beverages must have been provided proper notice. 

Social Host Liability

Social Host Liability creates a cause of action to a “spouse, child, parent, guardian, employer, or other person injured by an intoxicated person, or by the intoxication of another person under 21 years of age.” These Plaintiffs have a right of action against a person over the age of 21 years old, so long as the person had control over the premises and was in a reasonable position to prevent the underage consumption that resulted in the minor’s intoxication, or if the person sold, gave to, or purchased alcoholic beverages for a person under the age of 21, and that alcohol caused the intoxication. 

Ways to Limit Liability Due to Intoxication

One option is to draft a plan on how to address obviously intoxicated persons. Once you have a plan it is equally important that your staff understands the plan and is ready to implement it. You can also create drink limits to decrease the possibility of intoxication. Offering for sale non-alcoholic beverages and food may also limit intoxication, while also increasing your profits.

It may be beneficial to provide an alternate source of transportation for those that do become intoxicated, or implement a policy that requires your staff to call a cab for an intoxicated person. However, perhaps the best way to limit liability is to call the police as soon as a patron becomes uncooperative, or to prohibit obviously intoxicated patrons from entering the premises.

Underage Drinking

Proof of age may be established by showing a valid driver’s license that includes a photograph and date of birth, a valid identification card that includes a photograph and date of birth, a valid military ID, or a valid passport. 

Managing Liability

Safety on the premises can be increased by taking preventative measures. First, ensure that all patrons’ ages are verified. This is the best way to make certain your bar does not serve underage patrons. Second, create a standard procedure to prevent intoxicated guests.

This may include drink limits, or training for your bartenders on how to identify intoxication. Also offering non-alcoholic beverages and food may also limit the amount of intoxicated patrons in your bar. Third, create a standard procedure to how to handle intoxicated guests. This is important so your employees know how to handle a situation involving an intoxicated guest.

Having a set protocol can also lessen the risks and liability involved with an intoxicated patron. Fourth, ensure your employees have completed alcohol service training. Lastly, make certain you discuss your insurance coverage with your agent to ensure you will be covered in case something goes wrong.