Opinion ID: 891698
Heading Depth: 4
Heading Rank: 2

Heading: Social hosts are those who exercise control over the alcohol service.

Text: {25} Having concluded that the Legislature contemplated suits against a liquor licensee and a social host for the same events under the Liquor Liability Act, we turn to the question of who may be considered a social host. Social host liability under the Liquor Liability Act, as indicated in Chavez, requires some degree of control over the service or consumption of alcohol. 2007-NMCA-018, ¶ 31, 141 N.M. 116, 151 P.3d 77. As discussed above, control is implicit in the statutory language, applicable to a social host who has gratuitously provided alcohol. This Legislative choice of language is reflected in case law from other jurisdictions, where courts have imposed social host liability only when the social host had performed some sort of affirmative act in the service or provision of alcohol. See, e.g., Knight v. Rower, 170 Vt. 96, 742 A.2d 1237, 1241 (1999) (stating that a social host must furnish alcohol through some affirmative act or active part in the provision of alcohol); Alumni Ass'n v. Sullivan, 524 Pa. 356, 572 A.2d 1209, 1213 (1990) (finding that social host liability did not exist where there are no allegations that either the fraternity or the University was involved in the planning of these events or the serving, supplying, or purchasing of liquor). {26} Courts in our sister states have considered the question of social host liability when the alcohol consumption occurred in a licensed establishment and, though not always under the same duty of care as required by the Liquor Liability Act, we find their interpretations generally consistent with the our Legislature's choice to provide for social host liability. [5] In Born v. Mayers, the Supreme Court of North Dakota construed that state's dram shop statute to permit a claim against a company representative who purchased alcohol for an individual in a bar in order to promote business good will in the community. 514 N.W.2d 687, 689-90 (N.D.1994) (construing N.D.C.C. Section 5-01-06.1, which permits a cause of action against any person who knowingly disposes, sells, barters, or gives away alcoholic beverages to . . . an obviously intoxicated person). The Born court concluded that the statute imposes a duty upon those who purchase alcohol in a bar because `no reason occurs to us why those who furnish liquor to others, even on social occasions, should not be responsible for protecting innocent third persons from the potential dangers of indiscriminately furnishing such hospitality.' Id. at 690 (quoting Ross v. Ross, 294 Minn. 115, 200 N.W.2d 149, 153 (1972), superseded by statute as stated in Urban v. Am. Legion Dept. of Minn., 723 N.W.2d 1, 6 (Minn.2006)). {27} The Court of Appeals of Indiana construed that state's dram shop act, which prohibits furnishing alcohol to a visibly intoxicated individual, to impose a duty on a gratuitous server who orders and pays for drinks for another in a licensed bar because the gratuitous server controlled at least some of the drinks served. Vanderhoek v. Willy, 728 N.E.2d 213, 216-18 (Ind.Ct.App. 2000) (discussing Indiana Code Section 7.X-X-XX-XX and -15.5 and concluding that the plaintiff properly stated a claim under the dram shop act against both the bar and the individual who purchased the drinks at the bar); see also Ashlock v. Norris, 475 N.E.2d 1167, 1169 (Ind.Ct.App.1985) (concluding that the legislature intended to extend liability to family, friend or acquaintance who merely furnishes `one more drink' to an intoxicated person). {28} The Massachusetts courts recognize a common-law cause of action against social hosts. See McGuiggan v. New Eng. Tel. & Tel. Co., 398 Mass. 152, 496 N.E.2d 141, 146 (1986). In Makynen v. Mustakangas, the Massachusetts Appeals Court reversed summary judgment granted in favor of an uncle who permitted his nephew to consume multiple beers at his house and then purchased more beers for the nephew at a bar. 39 Mass.App.Ct. 309, 655 N.E.2d 1284, 1286-87 (1995). Makynen stated that [b]y being at the bar drinking with his nephew and paying for the drinks and food, [the uncle], the jury could find, made the beer available to [the nephew] at a time when he knew or should have known [that the nephew] was intoxicated. Id. at 1287 (citing Solberg v. Johnson, 306 Or. 484, 760 P.2d 867, 870 (1988)). In Dube v. Lanphear, however, the court ruled that social host liability was not available against the three friends of an individual who drove drunk and caused an accident because a group of drinking buddies, who shared the bill evenly, were not social hosts. 69 Mass.App.Ct. 386, 868 N.E.2d 619, 623 (2007). Important to the Dube holding was the fact that the friends had no ability to cut off the flow of alcohol to the individual who later drove, evidenced by the fact that the individual continued to purchase drinks for himself after the group bill had been settled. Id. at 624 (distinguishing Makynen due to the relationship between the uncle and the nephew, including the fact that the nephew did not share in the payment); see also Lev v. Beverly Enter.-Mass., Inc., 457 Mass. 234, 929 N.E.2d 303, 311 (2010) (refusing to distinguish between employer-hosts and other sorts of social hosts, concluding that employer-host liability is predicated on control of the alcohol, not control of the person who consumes it). {29} In Solberg, the Supreme Court of Oregon defined social host as one who receives guests, whether friends or associates, in a social or commercial setting, in which the host serves or directs the serving of alcohol to guests. 760 P.2d at 870 (construing O.R.S. § 471.565, formally OR ST § 30.950). The court explained: The typical example of a social host . . . is where a host invites associates to participate in a social gathering, in a private setting, and furnishes and serves alcohol to a guest. But not every host entertains guests at home. Many entertain at hotels, clubs or resorts. Hosting at taverns is not uncommon. . . . One may . . . ante up per drink at a tavern and still be a host. Id. (holding that the defendant tavern properly stated a contribution claim against the stepfather who purchased the alcohol for his stepson in the tavern); see also Grady v. Cedar Side Inn, Inc., 330 Or. 42, 997 P.2d 197, 200 (2000) (holding that plaintiff was not barred from recovery from defendant tavern even though it was possible that the fact finder could determine that the plaintiff was the drunk driver's social host because the plaintiff purchased alcohol from the tavern for the driver, his social companion). As discussed later in this Opinion, we do not believe our Legislature necessarily would agree with the definition of social host employed by the Oregon courts. {30} We perceive the following common themes in these well-reasoned cases that are instructive in determining what our Legislature envisioned when it statutorily enacted social host liability. Social hosting need not occur in a home; one may host in a bar or restaurant where the actual delivery of alcoholic beverages to the guests is performed by a licensed server. Factors that are key to determining whether one is a social host in a public establishment are whether the alleged social host exercised control over the alcohol consumed by the guests; whether the alleged social host convened the gathering for a specific purpose or benefit to the alleged social host, such as promoting business good will; and whether the alleged host intended to act as a host of the event, meaning arrange for the service of and full payment for all food and beverages served to the guests. {31} None of these factors is determinative, and this Opinion will not attempt to capture the myriad host/guest relationships that may exist. The presence of a business incentive, as corroborated by a corporate policy of encouraging entertainment to foster a business relationship, is evidence which could persuade a jury that a guest/host relationship exists. However, it is equally apparent that this kind of business atmosphere is not essential, and factors indicating whether one is acting as a social host, and thereby assuming some responsibility for the service of alcohol to guests, may be present in a purely social setting. {32} In our view, the guest/host relationship implies a certain degree of control by the host over the guest and the provision of alcohol. The host creates the environment and has the power to change it. It is the degree of control and responsibility envisioned by the Legislature in its careful choice of wording that distinguishes the present case, and others like it, from the more casual social arrangement in which each individual is responsible for herself or himself. Unless the social arrangement fits within the guest/host paradigm, the Legislature has not imposed a duty of care. Friends sharing drinks, regardless of who pays, normally would not rise to a guest/host relationship. When one is put in a position of being another's guest, it is implied that the host will be in the position of some responsibility, albeit only a responsibility not to be reckless in providing gratuitous alcohol.