Licensee's responsibility for drunk patrons

A most significant decision was handed down by the Full Court of Tasmania last week, regarding a licensee's civil liability for drunk patrons.  The appeal overturned the decision exonerating the licensee for the death of a drunk customer.

After drinking in the country inn at night the customer was killed whilst driving home. 

The appeal court found that the licensee had breached its duty of care to the customer based on the following circumstances:

• the inn was located in a small community;
  
  
• the customer was well known to the licensee and purchased on credit;
  
  
• only a few patrons were present during the night;
  
  
• for most of the night, the licensee was the only person serving in the bar;
  
  
• the customer gave his keys to the licensee and helped the licensee put his wife's motorcycle in the licensee's storeroom because he thought he might be breathalysed if he drove it home;
  
  
• the customer arranged with the licensee when he finished drinking to call his wife to collect him; and
  
  
• when the customer was eventually refused service, the licensee knew the customer intended to drive the motorcycle rather than ring his wife, and voluntarily released the motorcycle to the customer upon his request.

The Court determined the licensee owed a duty of care once he took possession of the motorcycle and breached that duty in allowing the customer to drive the bike from the inn while intoxicated. 

The Court recognised there were clearly reasonable steps the licensee could have taken to prevent the customer from driving the motorcycle including refusing to hand over the bike, ringing the customer's wife or taking the customer home himself.

Whilst the decision was obviously based on the particular facts of the case, it is a clear message to all licensees to review their own conduct in relation to each customer.

If you have any queries regarding this snapshot or other aspects of liquor licensing please contact Dan Mossenson on 9288 6769 or dan.mossenson@lavan.com.au.