During "Wilson Daze," a one-day festival held by the Wilson Fire Department (a Minnesota township), a person who was already inebriated was served beer and later injured two persons in a collision when driving home from the event. The injured parties sued the township.

The Wilson Fire Department had a temporary liquor license that authorized them to sell beer during an event which includes contests and games to raise money for the fire department. The fire department held a liquor liability policy from the Minnesota Joint Underwriting Association (MJUA) and, as part of the township, a commercial package policy from Mutual Service Casualty Insurance Company.(MSI). The MJUA participated with the township to settle the claims with both injured persons, but MSI denied coverage based upon their policy's liquor exclusion. Wilson sued to recover from MSI.

MSI's liquor liability exclusion barred coverage for losses involving alcohol, but only when the insured was in the "business of manufacturing, distributing, selling, serving or furnishing alcoholic beverages.

MSI argued that, the fact that the fire department held a temporary liquor license during the festival qualified them as being in the business of selling alcohol. The trial court found in favor of the Wilson Fire Department and MSI appealed. Upon appeal the court reasoned that the liquor sales was a one day, annual activity that neither generated significant income nor was a significant part of the fire department's or township's operations. In its opinion, the activity could not reasonably be interpreted as being in the business of selling or furnishing alcoholic beverages. The trial court's decision was affirmed in favor of the township fire department.

Mutual Service Casualty Insurance Company, Appellant v. Wilson Township Respondent, MnCtApp. No. CO - 99 -898 Filed December 21, 1999, Affirmed. CCH 2000 Fire and Casualty Cases, Paragraph 7189.