HOW TO HANDLE ALCOHOL LIABILITY CLAIMS
As most restaurant owners know, restaurants and their employees can be liable to third parties who are damaged from patrons who consume too much alcohol at a restaurant. Because of liability like this, it is important to know how a restaurant becomes liable and what to do to avoid that liability.
While Hawaii does not have a specific dram shop statute creating a dram shop claim, the courts have held that dram shop claim may be filed based on a violation of the state's liquor control laws in some circumstances. Under section 281-78 of the Hawaii Revised Statutes it is illegal for businesses to serve alcohol to persons who are under the influence of alcohol. The definition of “under the influence” is left largely to the discretion of the employee who serves the alcohol. Tell-tale signs of visible intoxication may include slurred speech, bloodshot eyes, and lack of physical coordination.
Hawaii is unique in that patrons themselves may not sue the business establishment. Instead, the bar or tavern may be held liable for damages caused to third parties who were injured by the patrons of the bar who were served alcohol. For example, if a bar serves a person alcohol, then that person drives away and injures another person in a car accident, the people injured may sue the bar for contributions.
The law also holds the bar liable if their patron injures a pedestrian. Damages are not limited to vehicular accidents but may include incidences where the patron engages in a fight or attacks an innocent bystander. Employees are also prohibited from serving alcohol to persons who are known to be habitual drunkards.
What must a plaintiff prove to succeed on a Hawaii dram shop claim? In order for the drinking establishment to be held liable, the plaintiff must prove:
The person who injured them was intoxicated
The defendant (the bar or tavern) sold or provided liquor to the intoxicated person
The defendant also caused or contributed to the person’s subsequent intoxication
Thus, the drinking establishment will be held liable both for the direct actions of its patrons as well as any instances where the patron is simply a party to an incident resulting in injury to a third party.
Now that we know the basics of the law, how do we handle claims? Follow these steps to give your restaurant the best chance of avoiding alcohol related claims:
Establish a policy about serving alcohol. For instance, some restaurants set their own limits on how many of certain drinks may be sold to individual patrons.
Require that all employees who could even possibly touch alcohol be TIPS trained;
Refuse to allow employees who have not taken the course to serve alcohol, and enforce such a restriction severely;
Be scrupulous in preserving your restaurant’s reputation for alcohol violations and take any perceived violation very seriously;
These simple steps can significantly improve your chances of reducing or even eliminating alcohol liability at your restaurant.