Can I be held liable for damages caused by an intoxicated patron at an event hosted at my establishment?
In Montana, owners and operators of establishments that serve alcohol may be held liable for damages caused by an intoxicated patron. The law generally holds that when a person (known as "the licensee") sells or serves liquor to a person who is obviously intoxicated, the licensee can be held liable for any damages caused by the patron. This is known as liquor liability law or “dram shop” law. Thus, if an establishment owner hosts an event and serves alcohol to a patron who is obviously intoxicated, the owner can be held liable for any damages caused by the intoxicated patron, even if the owner did not directly cause the damages. In Montana, licensees can also be held liable for damages even when they did not serve alcohol directly to the intoxicated patron. This is known as vicarious liability and occurs when an establishment creates an environment that facilitates excessive alcohol consumption. Thus, if an owner or operator of an establishment hosts an event and fails to adequately address excessive drinking, they can be held liable for damages that occur as a result. In short, though the extent of the law varies from state to state, in Montana, the owner or operator of an establishment can be held responsible for damages caused by an intoxicated patron at an event hosted at their establishment.
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