Vesely v. Sager
5 Cal. 3d 153, 486 P.2d 151, 95 Cal. Rptr. 623 (1971)
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Rule of Law:
A commercial vendor who furnishes alcoholic beverages to an obviously intoxicated person in violation of a statute may be held civilly liable for injuries proximately caused to a third party by that intoxicated person.
Facts:
- William A. Sager owned and operated the Buckhorn Lodge, a roadhouse engaged in the business of selling alcoholic beverages.
- Beginning around 10 p.m. on April 8, 1968, Sager served large quantities of alcohol to James G. O’Connell.
- Sager knew that O’Connell was becoming excessively intoxicated and was incapable of exercising normal volitional control over his consumption.
- Sager also knew that the only route from the lodge was a steep, winding, and narrow mountain road that O'Connell intended to drive on.
- Despite this knowledge, Sager continued to serve O'Connell alcoholic beverages until 5:15 a.m., well past the normal 2 a.m. closing time.
- After leaving the lodge, O’Connell drove down the mountain road, veered into the opposite lane, and struck a vehicle driven by Miles Vesely, causing Vesely personal injuries and property damage.
Procedural Posture:
- Miles Vesely (plaintiff) filed a lawsuit against William A. Sager (defendant) and others in the California trial court to recover for injuries from an automobile accident.
- Sager demurred to the complaint, arguing that under common law, a seller of alcohol is not liable for injuries resulting from a buyer's intoxication.
- Sager also filed a motion to strike allegations of agency and employment.
- The trial court sustained the demurrer without leave to amend and granted the motion to strike.
- The trial court then entered an order dismissing the complaint as to defendant Sager.
- Vesely (appellant) appealed the dismissal to the Supreme Court of California.
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Issue:
Does a commercial vendor of alcoholic beverages who sells to an obviously intoxicated person, in violation of statute, owe a duty of care to third persons who are injured as a result of the customer's intoxication?
Opinions:
Majority - Wright, C. J.
Yes. A commercial vendor of alcoholic beverages owes a duty of care to members of the public and may be held liable for injuries they suffer as a result of the vendor serving an obviously intoxicated customer in violation of statute. The traditional common law rule that the consumption of alcohol, not its sale, is the sole proximate cause of injury is unsound. Under modern principles of negligence, an actor is liable if his conduct is a substantial factor in causing an injury, and he is not relieved of liability by a foreseeable intervening act of a third person. The act of furnishing alcohol to an intoxicated person can be a proximate cause of injuries inflicted by that person because the resulting intoxication and injury-producing conduct are foreseeable. A duty of care is imposed upon the vendor by Business and Professions Code § 25602, which prohibits serving alcohol to obviously intoxicated persons. A violation of this statute, which was enacted to protect the public, creates a presumption of negligence under Evidence Code § 669.
Analysis:
This landmark decision abolished the common law rule that granted immunity to tavern keepers for injuries caused by their intoxicated patrons. By rejecting the antiquated proximate cause doctrine that focused only on the final act of consumption, the court established a new basis for civil liability, commonly known as "dram shop liability." The decision holds that serving alcohol can be a proximate cause of a subsequent accident and that a vendor's violation of a penal statute creates a presumption of negligence. This significantly changed California tort law by imposing a duty of care on commercial vendors to the general public, making them potentially liable for the foreseeable consequences of over-serving patrons.
