INSURED MAY BE LIABLE FOR POST-PARTY ACCIDENT

General Liability	Liquor Liability
Vicarious Liability

During a Christmas party held for Marriott hotel employees, one employee enjoyed enough alcoholic beverages to become intoxicated. The employee left the party and safely arrived home. However, later in the evening, the employee, while taking another employee home, hit another car. The driver in the other car was killed. The driver, whose blood alcohol level proved him to be very intoxicated, pled guilty to vehicular manslaughter and he received a prison sentence.

The family of the driver who was killed sued the employee as well as Marriott. Marriott alleged that it was not responsible as, at the time of the accident, he was not acting within the scope of employment. After a trial court ruled in Marriott’s favor, the plaintiffs appealed.

The higher court reviewed several state cases it deemed relevant to this situation. It decided that employers could create vicarious liability during parties that permitted the serving of alcohol when the parties were of benefit to the employer. In this case, the party acted as a reward to employees and was also deemed as a way to build greater employee satisfaction, a definite employer benefit. Further, the court decided that the level of intoxication that arose from the party reached a level of negligence that was not affected by the fact that the employee had gone home before going out again and causing a fatal accident. The key point was that the employee’s impaired state was directly connected to the level of drinking occurring at the party.

In light of its review, the lower level court decision was reversed and remanded for trial.

Alan Purton et al., Plaintiffs and Appellants v. Marriott International Inc., et al., Defendants and Respondents. Court of Appeal, California Court of Appeal, Fourth District. Case No. D060475. July, 3, 2013. Reversed.