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Why is Liquor Liability Insurance in South Carolina such an expensive problem for our restaurant and bar businesses?
According to the Risk & Insurance Education Alliance, "Today, 42 States and the District of Columbia recognize some form of liability for those who furnish alcoholic beverages, based either on dram shop statutes or common law principles. However, not all of these impose liability on the furnishers of alcoholic beverages. Some of these statutes are written to restrict potential liability rather than expand it. These statutes may even abrogate common law liability that has developed in recent years in that particular jurisdiction."
The takeaway is that each state has its own legal standard used to determine liability for a business serving alcohol. Specifically, South Carolina Statute provides an easier path than many states for courts to find legal liability on the part of the business serving alcohol. The result is larger and more frequent awards in favor of plaintiffs against restaurants and bars that served alcohol to customers who then caused bodily or property damage. The idea held by South Carolina courts is that the proximate cause of the injury is in whole or in part the serving of the alcohol that lead to the intoxicated party's actions as opposed to the intoxicated person's actions themselves.
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What constitutes a negligence cause of action
> The sale of alcohol
> to an allegedly intoxicated person
> the alleged intoxication caused (or contributed to)
> a wrongful act
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Things to know..
In general, illegal sales are to minors, habitual drunkards, and obviously/visibly intoxicated persons.
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Types of Defenses
When a lawsuit is filed, the plaintiff alleges that certain circumstances have occurred and is ultimately placing fault on the defendant. At that point, the defendant must present evidence that it hopes will prove that it was not at fault or that circumstances are not as they were alleged by the plaintiff.
There are a number of defenses the can be used to refute the allegations:
a. Contributory negligence
b. Comparative negligence
c. Assumption of risk
d. Last clear chance*
e. Willful and wanton misconduct
f. Participation
g. Server practices
h. Imputed negligence
An example of last clear chance defense: An allegedly intoxicated person (AIP) contends that the furnisher of the alcohol contributed to his injury by having the last opportunity to prevent him from using an auto.
An example of Willful and Wanton Misconduct defense: An allegedly intoxicated person knowingly drives their vehicle after others have offered to drive them or call for transportation.
An example of Participation defense: An allegedly intoxicated person participated in the intoxication by continuing to consume alcohol after being refused.
An example of Server Practices defense: When an establishment that serves alcohol has an established practice of training and supervising servers, that can be used as a defense against plaintiff allegations.
An example of Imputed Negligence defense: The establishment is blamed for the acts of another party or individual
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