Largo Corp. v. Crespin

727 P.2d 1098, 55 U.S.L.W. 2307, 1986 Colo. LEXIS 657
CourtSupreme Court of Colorado
DecidedNovember 17, 1986
Docket84SC365
StatusPublished
Cited by82 cases

This text of 727 P.2d 1098 (Largo Corp. v. Crespin) is published on Counsel Stack Legal Research, covering Supreme Court of Colorado primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Largo Corp. v. Crespin, 727 P.2d 1098, 55 U.S.L.W. 2307, 1986 Colo. LEXIS 657 (Colo. 1986).

Opinion

ERICKSON, Justice.

We granted certiorari to review the court of appeals decision in Crespin v. Largo Corp., 698 P.2d 826 (Colo.1984). We affirm, and hold that a common law negligence action may be brought against a tavern owner who sells alcohol to an intoxicated patron who thereafter injures a third party. In such an action, the defendant’s violation of section 12-47-128(1)(a), 5 C.R.S. (1985), constitutes negligence per se.

I.

FACTS

On March 27, 1980, James Hauenstein, who worked in Denver, was unable to return to his home in Loveland because of blizzard weather conditions. Hauenstein checked into a motel near his workplace at approximately 3:00 p.m., and had “probably half a dozen” beers at the motel bar before driving to the Little Vegas, a bar owned by petitioner Largo Corporation (Largo). At the Little Vegas, Hauenstein sat at the bar and drank two or three more beers. He then went to a booth with a woman he met at the bar and consumed an additional eight to ten beers, which were served by a cocktail waitress. While Hauenstein was in the Little Vegas, he experienced periodic blackouts and lost two payroll checks. He stumbled over chairs, tables, and stairs during several trips to the restroom. According to Hauenstein, he became “drunk” over the course of four or five hours at the Little Vegas.

Shortly after leaving the Little Vegas in his car, Hauenstein drove into oncoming traffic and collided with a car driven by Manuel Crespin. Crespin suffered fatal injuries in the accident.

Respondent Karen Crespin, the widow of Manuel Crespin, filed this action on her own behalf and on behalf of her three minor children, seeking to recover damages from Largo Corporation for the death of her husband. Crespin alleged that Largo’s employees negligently served alcoholic beverages to Hauenstein after he became visibly intoxicated, and that such negligence was the proximate cause of Manuel Gres-pin’s death. Crespin also claimed that Largo was liable because its employees violated sections 12-47-101 to -143, 5 C.R.S. (1985), of the Colorado Liquor Code, by serving alcoholic beverages to Hauenstein when he was intoxicated. Although not specifically characterized as such, Crespin’s second claim for relief was a negligence per se claim predicated upon Largo’s alleged violation of the Liquor Code.

*1100 Largo filed a motion to dismiss Crespin’s complaint for failure to state a claim upon which relief could be granted. Largo maintained that Colorado’s dramshop act, section 13-21-103, 6 C.R.S. (1973), provides the exclusive remedy against a tavern owner who negligently furnishes alcohol to an intoxicated person who thereafter injures a third party. With respect to Crespin’s negligence per se claim, Largo asserted that the claim should be dismissed because violations of the liquor code do not provide a foundation for civil liability.

The trial court denied Largo’s motion, and held that the dramshop act did not preclude Crespin’s common-law negligence action. In the court’s view, Crespin could recover against Largo if she proved that it breached a duty not to serve alcohol to a visibly intoxicated person, and that the breach proximately caused Manuel Crespin’s death. In addition, the trial court refused to dismiss Crespin’s negligence per se claim. The court held that section 12-47-128(1)(a), 5 C.R.S. (1985), prohibits the sale of alcohol to a visibly intoxicated person, and was enacted to prevent the type of injury that Manuel Crespin suffered. The trial court concluded that Crespin was a member of the class of persons protected by the statute and, based on the facts alleged in the complaint, negligence per se was an issue to be determined at trial.

At the close of Crespin’s evidence, the trial court granted a directed verdict for Largo on Crespin’s common-law cause of action, but allowed the negligence per se claim to go forward. However, at the close of Largo’s evidence, the trial court reversed its earlier ruling and permitted Crespin’s common-law claim and negligence per se claim to go to the jury. 1 In a special verdict, the jury found that Largo was negligent, and that such negligence proximately caused Manuel Crespin’s death, but did not specify which of Crespin’s theories it relied upon in reaching the verdict. The jury awarded Crespin $500,000 in compensatory damages, and the trial court entered judgment on the verdict. Largo’s motion for a new trial was denied.

The court of appeals affirmed, and rejected Largo’s contention that the dram-shop act was Crespin’s exclusive remedy for the injuries to her husband. The court of appeals held that Largo owed a duty to Crespin not to serve Hauenstein alcoholic beverages when he was intoxicated, and that the trial court’s instruction regarding negligence per se was proper. We have not previously determined whether Colorado recognizes common-law dramshop liability.

II.

COMMON-LAW DRAMSHOP LIABILITY

Until the late 1950’s, it was universally held that a common-law negligence action could not be brought by a third party against a tavern owner who sold alcoholic beverages to an intoxicated person. See Rinden, Judicial Prohibition? Erosion of the Common Law Rule of Non-Liability for Those Who Dispense Alcohol, 34 Drake *1101 L.Rev. 937, 938 (1985-86). The rationale underlying the rule was that the consumption, and not the furnishing of alcohol, was the proximate cause of the injury to the third party. See Ontiveros v. Borak, 136 Ariz. 500, 667 P.2d 200 (1983); Klingerman v. SOL Corp. of Maine, 505 A.2d 474 (Me.1986). In the past twenty-five years, however, an increasing number of courts, now a majority, have rejected the traditional rule and permitted negligence actions against vendors of alcoholic beverages. See Nazareno v. Urie, 638 P.2d 671 (Alaska 1981); Note, Crespin v. Largo Corporation and the Legislative Response: The Turbulent State of Dram Shop Liability in Colorado, 57 U.Colo.L.Rev. 419, 423 (1986).

The modern era of dramshop liability began in 1959, when two courts — the Seventh Circuit in Waynick v. Chicago’s Last Department Store, 269 F.2d 322 (7th Cir.1959), ce rt. denied, 362 U.S. 903, 80 S.Ct. 611, 4 L.Ed.2d 554 (1960), and the New Jersey Supreme Court in Rappaport v. Nichols, 31 N.J. 188, 156 A.2d 1 (1959)— held that a third party injured by an intoxicated person may bring a negligence action against the commercial vendor who sold liquor to the intoxicated person. Both decisions rejected the defendants’ contention that the sale or service of an alcoholic beverage could not, as a matter of law, be the proximate cause of injury to a third party. The Rappaport

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Bluebook (online)
727 P.2d 1098, 55 U.S.L.W. 2307, 1986 Colo. LEXIS 657, Counsel Stack Legal Research, https://law.counselstack.com/opinion/largo-corp-v-crespin-colo-1986.