|
“LIABILITY There’s more to lose than your licence.” (AGCO-09-00)
THE LIQUOR LICENCE ACT
The Liquor Licence Act and Regulations provide practical and efficient rules related to serving liquor in Ontario. The Act (which became law Sept. 15, 1990) reflects the commitment of the Ontario Government and the Alcohol and Gaming Commission to the promotion of moderation and responsibility in the sale and service of liquor in licensed establishments.
Alcohol and Gaming Commission of Ontario (AGCO)
Under the Liquor Licence Act, it is illegal to serve customers to intoxication, promote practices that may encourage customers to become intoxicate, or serve someone who already is or seems to be intoxicated. Licensees who do , can lose their liquor licence for seven to 45 days or even permanently.
Beyond the penalties imposed by the AGCO, however, licensees are also subject to civil litigation if they serve liquor to someone whose subsequent intoxication causes harm.
More and more, licensees are being found liable for the actions of intoxicated customers both inside and outside their establishments. Third parties injured by drunk patrons – and sometimes the drunks themselves – are suing licensed establishments for significant damages, and they are winning.
Licensees have had to pay out huge sums because someone got drunk in their establishment and caused an accident. In notable lawsuits, licensees have been ordered to pay:
- $400,000 when a customer drank 10 bottles of beer then killed three people and injured two others in a car accident;
- $88,000 to the relatives of a man who became intoxicated at two establishments and died after falling down a flight of stairs;
- $1.75 million when the licensee served an already intoxicated customer whose subsequent car crash rendered his passenger a quadriplegic (damages were divided between the licensee and the drunk driver);
- $33,000 to a man hurt in a parking lot fight when the licensee refused to allow the man to wait for an ambulance inside the establishment;
- $93,000 to a car-leasing firm whose automobile was destroyed after the man who leased the car was overserved in a tavern;
- $124,000 to a professional hockey player who lost income after a bar brawl damaged his arm.
If you serve a customer to intoxication – or serve alcohol to someone who came into your establishment drunk – you are responsible until that person sobers up. Coffee, cold showers and food won’t do it; only time can remove alcohol from the blood. You could be held liable for any harm caused by this person.
In one case, a server drove an intoxicated patron home, but the patron then got back in his car and killed another driver in a highway accident. The licensee was still held legally responsible because a ride home does not excuse the fact that the staff served this patron to intoxication in the first place. Remember, the law does not say, “you can’t get patrons drunk.”
Licensees should also remember that while drunk driving is a very serious concern, intoxicated people can get into just as much trouble off the road as on: fights, falls and drunken stunts have all led to lawsuits against licensed establishments.
The Ontario Court has ruled that “a tavern owes a twofold duty of care to its patrons. It must ensure that it does not serve alcohol which would apparently intoxicate or increase the patron’s intoxication. As well, it must take positive steps to protect patrons and others from the dangers of intoxication.”
The Liquor Licence Act, Section 29 states: “No person shall sell or supply liquor or permit liquor to be sold or supplied to any person who is or appears to be intoxicated. Ontario Regulation 719/90, Section 20 of the Liquor Licence Act, states: “The holder of a licence to sell liquor shall not engage in or permit practices which may tend to encourage patrons’ immoderate consumption of liquor.”
Learn to protect your patrons from harm and your business from court action. Educate yourself and your staff about the responsible sale and service of alcohol.
Lowering Your Liability Risks
- Have your staff take the Smart ServeTM responsible beverage server training program. A well-trained staff, fully aware of the effects of alcohol and the techniques for dealing with intoxicated patrons can be your best way of avoiding trouble. Call (416) 695-8737 for more information about Smart Serve or to order the program.
- Develop and enforce written policies and procedures for the service of alcohol. These house rules, if properly communicated to your staff and monitored on a regular basis, may help to avoid high-risk situations.
- Don’t serve intoxicated patrons. These customers are sure to get you in trouble – with the police, the AGCO and the civil courts.
- Don’t serve minors. More than any other group, these inexperienced drinkers are most likely to drive irresponsibly and cause accidents while under the influence of alcohol. Service to minors leaves you open to both criminal and civil action.
- Keep a record of incidents indicating those times when your staff refused to serve an intoxicated patron or minor. This documentation could be used to your favour, demonstrating that you are a good operator with a history of responsible serving practices.
- Employ adequate security staff to keep trouble out. In many establishments, well-trained security is essential to maintaining order and heading off potential problems. Security staff should carefully check ID, monitor washrooms, deter potential trouble and handle incidents as needed.
- Do not promote the over-consumption of alcohol. Irresponsible promotions, such as “shooter” specials and others that encourage customers to drink alcohol more quickly than they normally would, are sure to result in a dramatic increase in cases of customer intoxication. This practice is not only illegal, it may lead to a lawsuit.
- Emphasize the food service aspect of your business. According to the Liquor Licence Act, you must offer light meals at all times that your bar is open. Studies prove that food slows the absorption of alcohol into the blood. Promoting food specials and encouraging customers reaching intoxicated levels with just a few drinks.
- Offer alternative beverages. Non-alcoholic or low-alcohol drinks allow your customers to make responsible choices while visiting your establishment. Consider offering free or lower-cost non-alcoholic beverages to designated drivers.
- Focus on quality, not quantity. Recognize that your business benefits when your customers moderately consume quality products sold at a higher price.
- Develop a good working relationship with the police and your local liquor inspector. They can provide you with valuable advice, and if a problem arises, you can feel comfortable calling for assistance.
- Develop a checklist of potentially dangerous areas in your establishment and take action to improve them. Establishments have a duty under the Occupier’s Liability Act to ensure that the premises are reasonably safe. An unmarked step or low railing may not look dangerous in the bright light of mid-day but could be missed by an intoxicated customer in a dark bar.
For a copy of the Liquor Licence Act and Regulations, please contact:
The Ontario Government Bookstore
Publications Services Section
880 Bay Street, 5th Floor
Toronto, ON M7A 1N8
(416) 326-5300 or 1-800-668-9938
Source: Alcohol and Gaming Commission of Ontario (AGCO)
“Liability - there’s more to lose than your licence”
Licensee information sheets
AGCO- 09-00
For information on Host Liability, please check:
Being Sued can Ruin a Good Party
“What You Should Know About Serving Alcohol Responsible”
source: http://madd.ca/library/sued.htm
|
