About Real Estate: Owners must be careful when throwing a house party
Many homeowners don#146;t realize that they can be held financially and sometimes even criminally liable if they serve a partygoer alcohol and the guest later gets into an accident.Q. We#146;re hosting a big party at our home soon, but we#146;ve heard #147;horror stories#148; about homeowners who have been sued when a guest has too much to drink and then gets into a car crash or is involved in some other type of accident. Are these stories true? If so, what can we do to protect ourselves and our guests?
A. Yes, most of those stories are true. Forty-three states now have #147;social host liability#148; or related #147;dram shop liability#148; laws that can leave a homeowner who serves alcohol to guests financially and sometimes even criminally liable if something goes wrong after the visitor leaves.
The holiday-party season is already in full swing, and won#146;t really end until after February#146;s Super Bowl. There#146;s no way to guarantee that hosts can avoid legal trouble if they serve booze at their events, but there are some important steps that homeowners can take to help minimize their risks when they throw a big party or entertain just one or two guests.
I#146;m devoting this week#146;s entire column to answering some of the most common questions about providing visitors with alcohol.
Q. What#146;s the best way for us to prevent a lawsuit after we have a party?
A. Obviously, the first is to not serve booze at all.
If you offer alcohol, though, consider limiting the drinks to lower-proof beer and wine rather than an array of beverages that include more potent #147;hard liquors#148; such as whiskey, vodka or rum. Also keep your fridge well-stocked with bottled water, soda and other nonalcoholic drinks.
Serve lots of food, too, which can help counter (but never completely offset) the effects of booze.
Q. If I have a party invitation that says BYOB (bring your own booze), can I still be liable if someone drinks too much?
A. Yes. Don#146;t be fooled into thinking that simply asking invitees to bring their own drinks will make you immune from a potential lawsuit if something bad happens.
Most states have laws that say you#146;re responsible for the drinks and food that are consumed in your own home, even if you don#146;t provide them yourself. That means you could still be held liable by victims if a guest overimbibes on his own bottle and then gets into an auto accident, or perhaps even if the tipsy guest himself simply slips and falls on the front porch while leaving your house.
Q. Would my legal liability be affected if I send out written invitations rather than making the invite by phone or in person?
A. No. But again, because it#146;s your legal responsibility to ensure that guests don#146;t drink too much and hurt themselves or others, make sure your invitation encourages them to pick a designated driver who won#146;t consume any alcohol.
Monitor all of your visitors#146; drinking closely, and don#146;t let any minors who might attend get anywhere near the booze. Limit yourself to no more than one or two alcoholic beverages, so you will be better able to judge each guest#146;s sobriety.
Even better, if you have the money to afford it, hire a professionally licensed bartender for the party. The barkeeper#146;s training may help him or her spot a visitor who has had too much to drink even though you may have failed to notice.
It#146;s also usually easier for pro bartenders to stop serving someone they don#146;t know than for a homeowner to cut off drinks to a family member or friend. Some barkeepers and caterers even have their own insurance policies that can add an extra layer of protection if you later get sued.
Q. Would my own homeowners insurance policy protect me for the actions of an inebriated guest?
A. It may, but you should call your insurer before your party to ask about any exclusions, conditions or limitations the policy might have for this kind of risk, said Insurance Information Institute Vice President Loretta Worters.
Homeowners insurance usually provides some liquor liability coverage, Worters added, but it is typically limited to $100,000 or $300,000. That might not be enough if, say, a tipsy guest gets into a serious car accident after leaving your home.
If a visitor or visitors drink too much, she said, put them in a cab, arrange for a sober person to drive them home or let them sleep in a spare bedroom or on your couch until the next day. Those are not only the safest options, but they also could help you to avoid a costly lawsuit later.
Ÿ For the booklet #147;Straight Talk About Living Trusts,#148; send $4 and a self-addressed, stamped envelope to David Myers/Trust, P.O. Box 2960, Culver City, CA 90231-2960.
© 2011, Cowles Syndicate Inc.