Dram Shop Liability for Winery Tasting Rooms in Michigan
Mark Vanneste
Howard & Howard Attorneys PLLC
If you operate a tasting room in Michigan, onsite or offsite, understanding the State’s dram shop laws is important. These laws impose specific responsibilities and potential liabilities on establishments that serve alcohol, including winery tasting rooms.
Michigan’s dram shop law, codified in the Michigan Liquor Control Code, holds alcohol-serving establishments liable if they unlawfully provide alcohol to minors or visibly intoxicated individuals who subsequently cause injury or death to third parties. This liability extends to winery tasting rooms, which are considered licensed premises under Michigan law.
In Michigan, most people are well aware that it’s unlawful to sell or furnish alcohol to individuals under the age of 21. But there is a bit more nuance to the prohibition on serving those who are visibly intoxicated. “Visibly intoxicated” refers to observable signs of intoxication, such as slurred speech, unsteady gait, or impaired coordination. Serving alcohol to such individuals can result in liability if they cause harm to themselves or others after leaving your tasting room – even if they only had a small amount in your establishment.
If a patron who was unlawfully served alcohol at your tasting room causes injury or death to a third party, your establishment can be held liable for the victims damages under the dram shop law. This includes situations where the patron was a minor or visibly intoxicated at the time of service.
In the event of a dram shop claim, the injured party must provide written notice to your establishment within 120 days of retaining legal counsel. Additionally, any lawsuit must be filed within two years of the incident. Importantly, the patron who was served alcohol must also be named as a defendant in the lawsuit, not just your establishment.
To mitigate the risk of liability under Michigan’s dram shop law, consider implementing the following measures, some of which may seem obvious but always serve as a good reminder given the possible exposure.
- Ensure that all employees involved in serving alcohol complete a server training program approved by the Michigan Liquor Control Commission (MLCC). Such programs educate staff on identifying signs of intoxication and verifying the age of patrons.
- Implement strict age verification procedures to prevent the service of alcohol to minors. This includes checking valid identification for all patrons who appear under the age of 30.
- Train staff to recognize signs of visible intoxication, which can be tricky for someone who is not around people who drink often, and establish protocols for refusing service to intoxicated individuals. Document any incidents involving refusal of service to maintain records that may be useful in the event of a legal claim.
- Obtain liquor liability insurance to provide financial protection in the event of a dram shop claim. This insurance can cover legal fees, settlements, and judgments arising from such claims.
- Stay informed about and comply with all MLCC regulations pertaining to the operation of your tasting room, including licensing requirements, permissible hours of alcohol service, and restrictions on promotional activities.
Operating a tasting room in Michigan comes with the responsibility of adhering to the State’s dram shop laws. By understanding these laws and implementing proactive measures, you can reduce the risk of liability and ensure the safety of your patrons and the public. Consult with legal counsel to review your policies and procedures regularly, ensuring ongoing compliance with all applicable laws and regulations.
If you have any questions or need further assistance, feel free to reach out at mv@h2law.com. Cheers to a safe and a thriving wine industry in Michigan!
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