Opinion ID: 1966392
Heading Depth: 1
Heading Rank: 2

Heading: the exclusive remedy of the dramshop act

Text: Whether or not a statutory scheme preempts the common law on a subject is a matter of legislative intent. Jones v Rath Packing Co, 430 US 519; 97 S Ct 1305; 51 L Ed 2d 604 (1977), reh den 431 US 925 (1977). In general, where comprehensive legislation prescribes in detail a course of conduct to pursue and the parties and things affected, and designates specific limitations and exceptions, the Legislature will be found to have intended that the statute supersede and replace the common law dealing with the subject matter. 2A Sands, Sutherland Statutory Construction (4th ed), § 50.05, pp 440-441. At common law, negligence in the sale or furnishing of intoxicating liquor to an ordinary able-bodied person was not a tort even though a result of intoxication was injury to the intoxicated person or others. Manuel v Weitzman, 386 Mich 157, 163; 191 NW2d 474 (1971). The reason for this rule was that it was the drinking of the liquor, rather than the furnishing of it, which was deemed the proximate cause of the injury. Longstreth v Gensel, 423 Mich 675, 684; 377 NW2d 804 (1985). Dramshop acts were intended to fill the void that existed at common law. Id. In Michigan, by statute, a wife, husband, child, parent, guardian, or other person injured by a visibly intoxicated person by reason of the unlawful sale or furnishing of intoxicants to such person has a cause of action against the tavern owner where the sale of intoxicating liquor is proven to be a proximate cause of the injury. MCL 436.22(5); MSA 18.993(5). This Court has recognized that by enacting the dramshop act the Legislature created a new remedy for a new and particular right. Browder v Int'l Fidelity Ins Co, 413 Mich 603, 612; 321 NW2d 668 (1982). The new remedy is not against the intoxicated person who causes an actual injury, but against the bar owner who sells intoxicating liquor to a minor or a visibly intoxicated person and against the principal and sureties on the bond which the licensee is required to procure under the act. Browder, supra . As a general principle of law, where a statute creates a new right and prescribes a particular remedy, the remedy is exclusive and must be strictly construed. Holland v Eaton, 373 Mich 34; 127 NW2d 892 (1964), overruled on other grounds 394 Mich 179; 229 NW2d 332 (1975). See also Thurston v Prentiss, 1 Mich 193 (1849); In re Quinney Estate, 287 Mich 329; 283 NW 599 (1939). Application of the foregoing principle is particularly appropriate here because the dramshop act appears as a self-contained measure with the new remedy and liability under it carefully balanced in a fair and reasonable manner. In Browder, supra, p 614, while discussing the exclusive nature of the remedy and period of limitations in the dramshop act, this Court observed the following: On the one hand, the injured party is protected by a new and non-common-law remedy against a person not otherwise liable, the bar owner. In addition, the bar owner has to be bonded, and both the bond principal and sureties are liable, the sureties to the extent of the bond. This reasonably assures the plaintiff of recovery against a financially responsible person or persons. On the other hand, the bar owner and those liable on the bond, who themselves did not commit, and may not have been aware of the commission of, the tort, are protected from stale claims which they might find particularly difficult to investigate. Moreover, the Legislature has demonstrated a clear propensity to consider and reconsider the provisions of the dramshop act to keep it internally balanced. [1] Therefore, this Court has found that the Legislature intended the dramshop act to be a complete and self-contained solution to a problem not adequately addressed at common law and the exclusive remedy for any action arising under dramshop-related facts. [2] Browder, supra, p 616. Indeed, the Legislature has amended the act to expressly codify this intent in 1986 PA 176, which provides in pertinent part, This section provides the exclusive remedy for money damages against a licensee arising out of the selling, giving, or furnishing of alcoholic liquor. MCL 436.22(11); MSA 18.993(11). Plaintiff contends, however, that notwithstanding the exclusive remedy nature of the dramshop act, Michigan courts have long recognized that liquor licensees remain liable for breach of independent common-law duties. We agree. In Manuel v Weitzman, supra, 164-165, quoting De Villez v Schifano, 23 Mich App 72, 77; 178 NW2d 147 (1970), this Court stated: We hold that the dramshop act affords the exclusive remedy for injuries arising out of an unlawful sale, giving away, or furnishing of intoxicants. King v Partridge (1968), 9 Mich App 540, 543 [157 NW2d 417]. However, the act does not control and it does not abrogate actions arising out of unlawful or negligent conduct of a tavern owner other than selling, giving away, or furnishing of intoxicants, provided the unlawful or negligent conduct is recognized as a lawful basis for a cause of action in the common law. [Emphasis supplied.] Manuel sets forth a two-part analysis for determining what claims are proscribed by the exclusive remedy provision. (1) Does the claim against the tavern owner arise out of an unlawful sale, giving away, or furnishing of intoxicants? If so, the dramshop act is the exclusive remedy. (2) If the claim arises out of conduct other than selling, giving away, or furnishing of intoxicants, does the common law recognize a cause of action for the negligent conduct? If so, then the dramshop act neither abrogates nor controls the common-law action. If not, there is no independent common-law claim. Applying this test to the facts of this case, we find that while it is logically symmetrical to posit that only unlawful conduct comes within the dramshop act and other conduct related to furnishing, selling, or giving away by a dramshop owner may state a common-law negligence claim, such a construct founders on the fact that there was no common-law action for negligence in the furnishing of alcohol to an able-bodied person. Stated otherwise, as we said in Manuel, the dramshop act does not abrogate or control actions arising out of unlawful or negligent conduct of a tavern owner other than selling, giving away, or furnishing of intoxicants, provided the unlawful or negligent conduct is recognized as a lawful basis for a cause of action in the common law. Second, a finding of common-law negligence on the basis of these allegations would do obvious violence to the exclusive remedy provision of the dramshop act as it would permit circumvention of the provision of the act in any instance where the factfinder concluded that at the moment of serving, the imbiber was not yet visibly intoxicated. It would also allow circumvention of provisions peculiar to the act such as the two-year period of limitations and the name and retain provision, which safeguard the careful balance established by the Legislature between the new right and new liability under the act. Cf. Jones v Bourrie, 369 Mich 473; 120 NW2d 236 (1963). Third, the implication of the statement in Manuel that the liability provisions of the dramshop act preempt any common-law action for negligent sale is that the exclusive remedy provision bars a remedy for negligent sale or furnishing. See id., p 164. Finally, legislative history [3] indicates that the word unlawful in the act qualifies the plaintiff's right to recovery under the act. It does not determine, however, whether the dramshop act is applicable. Indeed, the Legislature has recently mandated that the dramshop act is the exclusive remedy for damages against licensees arising out of the selling, giving, or furnishing of alcoholic liquor. MCL 436.22(11); MSA 18.993(11). The word unlawful is conspicuously missing from this provision. In short, it is not the unlawful aspect of the conduct which determines whether the exclusive remedy of the dramshop act shall be invoked. Rather, it is the underlying conduct that must be analyzed. In conclusion, therefore, the categories of claims that are subject to the exclusive remedy provision are those that allege breach of a duty made unlawful by the act and those that allege breach of a duty which would have constituted negligent furnishing, selling, or giving away of liquor if such a claim was recognized at common law. Cf. Kowal v Hofher, 181 Conn 355; 436 A2d 1 (1980).