Liquor regulators not liable for drunk driving injuries, court finds

By Howard Fischer | Capitol Media Services

Key Points: 
  • It is illegal for establishments serving liquor to sell to “obviously intoxicated” people 
  • The Arizona Supreme Court says liquor regulators have no obligation to close bars who regularly overserve
  • The decision overturns another that found the agency has a duty to prevent public harm

The failure of state liquor regulators to close a bar with an alleged history of overserving does not make it liable when an intoxicated customer causes harm after driving, the Arizona Supreme Court has ruled.

In a unanimous opinion, the justices acknowledged that the state Department of Liquor Licenses and Control has broad authority to suspend, revoke or refuse to renew a license if the establishment fails to comply with the statutes that regulate the sale of alcoholic beverages. One of those laws makes it illegal to serve liquor to an “obviously intoxicated person.”

And in this case, the victims of an accident caused by someone who left Billy Jack’s Saloon and Grill in Dewey-Humbolt — a person who had a blood-alcohol content more than four times the legal limit — say that the failure of the state agency to close the bar led to their injuries.

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