Hosting a holiday business party is a great way to thank your clients or employees for their patronage or hard work over the course of the past year. But if alcohol is being served or consumed at your holiday business party, you need to be aware of your potential liability as a social host.
In fact, in light of recent Canadian cases dealing with employer liability and social host liability, your wisest course may be to ensure that any social function your company hosts is alcohol-free.
"The courts have broadened the scope of employer responsibility for monitoring employee behavior in the workplace where alcohol consumption is involved," according to Diana Dorey of Davis and Company ( Update on Employer Liability). "This means that employers must take proactive steps to prevent the foreseeable risk of injury caused by an intoxicated employee who chooses to drink and drive."
Two Frightening Social Host Liability Cases
If you're thinking of having a holiday business party for your employees, the decision of the Ontario Superior Court in Linda Hunt v. Sutton Group Incentive Realty Inc. will certainly give you second thoughts. Justice Clair Marchand ordered Sutton Group to pay Linda Hunt $300,000 in damages when she suffered permanent physical and brain injuries in a car accident that occurred when she was driving home drunk from an office party in 1994.
The judge ruled that Sutton Group was partly responsible because they ran an open bar at their business party - even though, after leaving the office party, Ms. Hunt drove to a bar and continued drinking for another hour and a half before she tried to drive home.
In this case, the employer did offer to call Hunt's husband to drive her home, but the judge ruled that the company should have taken more proactive measures to prevent Linda Hunt from driving home drunk, such as taking custody of her car keys and vehicle, or sending her home in a taxi at company expense.
If this case isn't enough to dampen your holiday spirit, consider the B.C. social host liability case of Prevost v. Vetter, where Greg and Shari Vetter were ordered to pay part of the $2.5 million awarded to Adam Prevost, who suffered severe brain injuries in a car accident that occurred after he (and other teens) were drinking at a party in the Vetter's home in 1998.
The Vetters were asleep while the party went on; they didn't supply alcohol to any of the guests or even know that alcohol was being consumed. Although the defendants won their appeal in May of 2002, the case was sent back for regular trial, and Prevost v. Vetter may yet set a new and frightening standard for the legal responsibilities of anyone hosting a party in his or her own home.
Whether you're hosting a business party, then, or just having a get-together with friends, you need to consider the potential legal liability of being a social host. On the next page are some tips for being a safe host.
