Gressman v. McClain

533 N.E.2d 732, 40 Ohio St. 3d 359, 1988 Ohio LEXIS 480
CourtOhio Supreme Court
DecidedDecember 30, 1988
DocketNo. 87-2053
StatusPublished
Cited by67 cases

This text of 533 N.E.2d 732 (Gressman v. McClain) is published on Counsel Stack Legal Research, covering Ohio Supreme Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Gressman v. McClain, 533 N.E.2d 732, 40 Ohio St. 3d 359, 1988 Ohio LEXIS 480 (Ohio 1988).

Opinions

Moyer, C.J.

Appellant’s propositions of law present three questions for our consideration. The first is whether a permit holder whose employee sells alcoholic beverages to an intoxicated [361]*361patron in violation of R.C. 4301.22(B) owes a duty to third persons for injuries caused by the intoxicated patron. The second question is whether R.C. 4301.22(B) requires that the permit holder have actual knowledge of a patron’s intoxication at the time of the sale. Finally, we are asked whether a common-law duly of care to third parties requires the permit holder to have actual knowledge of the patron’s intoxication at the time of the sale.

R.C. 4301.22 provides in relevant part that:

“Sales of beer and intoxicating liquor under all classes of permits and from state liquor stores are subject to the following restrictions, in addition to those imposed by the rules or orders of the department of liquor control:

it* * *

“(B) No sales shall be made to an intoxicated person.”

The trial court, in directing a verdict for defendant-appellee, and the court of appeals, in affirming the trial court, relied on this court’s decision in Settlemyer, swpra, in deciding that a permit holder who sells alcoholic beverages to an intoxicated person in violation of R.C. 4301.22(B) does not owe a duty to third persons, off the permit premises, for injuries caused by the intoxicated patron.

The complaint in Settlemyer did not allege a sale. The court deemed Wilmington Veterans Post No. 49, American Legion, Inc. to be a social host and held that since the patron, apparently an adult, who caused an automobile accident that took the life of a third person off the premises of the Veterans Post had been served alcoholic beverages by a social host, the Veterans Post was not liable to the third person. The court, in expressing its reluctance to extend potential liability to the social provider of alcoholic beverages, observed that the social host had not violated R.C. 4301.22(B) or (C). Settlemyer, supra, at 126, 11 OBR at 424, 464 N.E. 2d at 524.

The importance that there be a statutory violation was amplified by our recent decision in Mitseff v. Wheeler (1988), 38 Ohio St. 3d 112, 526 N.E. 2d 798, in which we held that a social host who provided alcoholic beverages to a seventeen-year-old minor in violation of R.C. 4301.69 could be held liable to third parties injured as a result of the minor’s negligence. The critical difference between Settlemyer and Mitseff is the absence of the violation of a statutory duty in Settlemyer and the presence of such a violation in Mitseff.

We are aware that the holding in Settlemyer has created the assumption by some that declaring a permit holder to be a noncommercial provider or a social host eliminates the permit holder’s liability for injuries caused to third persons by intoxicated persons where the injuries occurred off the permit holder’s premises. See McDaniel v. Brandywine Mills, Inc. (May 8, 1985), Summit App. No. 11913, unreported; Babcock v. Joseph (Jan. 31, 1986), Lucas App. No. L-85-607, unreported. It is appropriate at this time to confine Settlemyer to its facts.

The evils which brought about the Prohibition Era in this country were sought to be minimized upon the return of legal traffic in alcoholic beverages. The General Assembly, in its desire to control such traffic, engrafted the conditions in R.C. 4301.22 upon the privilege to engage in the sale of alcoholic beverages. These conditions establish standards of conduct for permit holders. One of those standards of conduct is that no person shall sell beer or intoxicating liquor to an intoxicated person. State v. Morello (1959), 169 Ohio St. 213, 215-216, 8 [362]*362O.O. 2d 192, 193, 158 N.E. 2d 525, 527. R.C. 4301.22(B) unequivocally declares that no sales of alcohol shall be made to an intoxicated person. See Taggart v. Bitzenhofer (1972), 35 Ohio App. 2d 23, 28, 64 O.O. 2d 157, 160, 299 N.E. 2d 901, 904, affirmed (1973), 33 Ohio St. 2d 35, 62 O.O. 2d 372, 294 N.E. 2d 226, citing Morello, supra.

It is well-settled that where a legislative enactment imposes a specific duty for the protection of others, a person’s failure to observe that duty constitutes negligence per se. Taylor v. Webster (1967), 12 Ohio St. 2d 53, 56, 41 O.O. 2d 274, 275, 231 N.E. 2d 870, 872. We recognized that principle in Mitseff and we apply it here. There is no legal distinction between the violation of a duty not to furnish intoxicating beverages to a minor and the violation of a duty not to furnish intoxicating beverages to an intoxicated person. See Morello, supra, at 216, 8 O.O. 2d at 193, 158 N.E. 2d at 527-528. The common goal in each instance is to protect the consumer of the beverage from his or her own conduct and to protect the public from such conduct. See Pond v. Carey Corp. (1986), 34 Ohio App. 3d 109, 112-113, 517 N.E. 2d 928, 932-933; Cahn, New Common Law Dramshop Rule (1960), 9 Cleve.-Mar. L. Rev. 302, 302-305.

When a permit holder or his employee sells alcoholic beverages to a person who is intoxicated, an unreasonable risk of harm to the intoxicated person and to others is created. It is a matter of common knowledge that an intoxicated person lacks control of his or her mental and physical faculties during the period of intoxication and that a person who becomes intoxicated at a place where alcoholic beverages are sold by a permit holder is likely to leave the permit holder’s premises in an automobile. As the facts in this case so tragically and graphically demonstrate, an automobile driven by an intoxicated person is a lethal weapon and a hazard to the safety of others. The driving of an automobile while intoxicated is, of course, only one means by which an intoxicated person can injure or kill other people.

In 1986, after this cause of action arose, the General Assembly clearly set forth the preexisting public policy on this issue in R.C. 4399.18. The statute provides in pertinent part as follows:

“* * * A person has a cause of action against a permit holder or his employee for personal injury, death, or property damage caused by the negligent actions of an intoxicated person occurring off the premises or away from a parking lot under the permit holder’s control * * *.”

For causes of action arising before the effective date of R.C. 4399.18, July 21, 1986, we hold that the holder of a liquor permit under R.C. Chapter 4303 may be liable to third persons for injuries or death occurring off the premises of the permit holder where said injuries or death are caused by a person to whom a sale of intoxicating beverage has been made by the permit holder or his employee in violation of R.C. 4301.22(B).

Applying our holding to the facts of this case, Green Hills may be liable to appellant if it can be shown that Pasch was sold alcoholic beverages when intoxicated and that while so intoxicated she caused the damages claimed.

We next consider the standard of conduct required of permit holders and their employees under R.C. 4301.22 (B). Appellant argues that a permit holder should be liable if he knew or should have known that a patron was intoxicated when intoxicating beverages were sold to him. Appellee argues that the test should be whether the [363]

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Bluebook (online)
533 N.E.2d 732, 40 Ohio St. 3d 359, 1988 Ohio LEXIS 480, Counsel Stack Legal Research, https://law.counselstack.com/opinion/gressman-v-mcclain-ohio-1988.