NOTE –
This is from our older court case archives. It may involve situations that are
inapplicable to newer coverage forms. Please be aware of this possibility when
reading and using this case.
Bar
Owner’s Negligence Could Not Be Separated From Liquor
Liability Exclusion
|
General
Liability |
|
Liquor
exclusion |
This was an
appeal from a trial court decision, favorable to a bar owner’s General
Liability insurer, by a man who was rendered a quadriplegic because of an
automobile accident involving a car driven by a friend and in which he was a
passenger. Allegedly, both had left the bar in an intoxicated state, and the
accident was a direct result of negligence of the establishment in selling
alcohol to the driver.
The insurer
had denied liability because of an exclusion
applicable to a business selling alcoholic beverages to a person “…under the
influence of alcohol or which causes or contributes to the intoxication of any
person…”
The injured
man argued that the bar owner’s liability based on negligence was
distinguishable from liability because of the sale or service of alcohol. He
contended that, for this reason, the pertinent exclusion did not relieve the
insurer from coverage obligations under the policy. He said that, if a cause of
action is brought in negligence; exclusion language is not triggered that is
pertinent only to violation of a statute or sale or service of alcohol. He
stressed that “negligent acts of the bar owner in failing to properly manage
the bar and to properly supervise he bar employees” were the root causes of his
problem and that coverage should not be excluded.
The court
concluded that claims of mismanagement or improper employee supervision were
directly related to the sale or service of alcohol. The summary judgment in
favor of the insurer was affirmed.
Sheffield
Insurance Company, Plaintiff, Respondent v. Lighthouse Properties, Inc., Et
Al., Defendants, Appellants, Montana Supreme Court. No. 88-70. October 31,
1988. CCH 1988-89 Fire and Casualty Cases, Paragraph 1466.