Schwab v. Matley

793 P.2d 1088, 164 Ariz. 421, 58 Ariz. Adv. Rep. 11, 1990 Ariz. LEXIS 63
CourtArizona Supreme Court
DecidedApril 5, 1990
DocketCV-88-0337-PR
StatusPublished
Cited by32 cases

This text of 793 P.2d 1088 (Schwab v. Matley) is published on Counsel Stack Legal Research, covering Arizona Supreme Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Schwab v. Matley, 793 P.2d 1088, 164 Ariz. 421, 58 Ariz. Adv. Rep. 11, 1990 Ariz. LEXIS 63 (Ark. 1990).

Opinions

OPINION

FELDMAN, Vice Chief Justice.

This case comes to us for review of a court of appeals opinion reversing a trial court’s order dismissing a personal injury action. The trial court dismissed pursuant to A.R.S. § 4-312(A), which modifies the common law liability of tavernkeepers. The issues presented illustrate the tension between legislative attempts to suppress or control the assertion of damage claims and Arizona’s constitutional provisions protecting such claims.

We have jurisdiction under Ariz.Const. art. 6, § 5(3) and A.R.S. § 12-120.24. We granted review to determine the constitutionality of the statute in question. See Rule 23, Ariz.R.Civ.App.P., 17B A.R.S. .

FACTS AND PROCEDURAL BACKGROUND

Plaintiff Lloyd Schwab (Schwab) and Earl Barnaby (Barnaby) entered a tavern owned by defendant, Therese Matley (Mat-[422]*422ley), in Yavapai County on September 23, 1985. Schwab alleges that Matley was negligent in serving the two men and in allowing them to remain on the premises. He claims because he and Barnaby became intoxicated, they argued, and, while standing in the parking lot, Barnaby shot and injured Schwab, who was standing near the front door of the tavern.

The shooting occurred on September 23, 1985, and Schwab sued Matley almost one year later. In the interim, the legislature enacted A.R.S. § 4-312(A), which, in pertinent part, provides that a liquor licensee who negligently furnished liquor to a customer “is not liable” for injuries sustained by either the customer or anyone accompanying the customer “who knew of the impaired condition of the person [served].” 1

The statute became effective August 13, 1986, approximately eleven months after Schwab was injured and almost thirty days before he filed the negligence action. Mat-ley moved to dismiss Schwab’s claim, asserting the protection of the statute. Schwab argued that the law prohibited such a retroactive application of the statute. See A.R.S. § 1-244. Disagreeing, the trial court granted Matley’s motion to dismiss. Schwab appealed. After first rejecting Schwab’s arguments, the court of appeals concluded that because a referendum petition had been filed to challenge A.R.S. § 4-312, the effective date of the statute had been delayed until September 12, 1986, the day bn which the referendum petition was invalidated by the secretary of state. Schwab v. Matley, 162 Ariz. 46, 47, 780 P.2d 1387, 1388 (1988) (opinion on motion for reconsideration). The court of appeals thus reversed the trial court’s judgment, concluding that the statute declaring Mat-ley “not liable” was not in effect when the tort action was filed, even though the referendum petition was subsequently found void for lack of sufficient valid signatures. Id.

Matley petitioned this court to review the court of appeals’ opinion, and Schwab timely filed a cross-petition challenging the statute under Ariz.Const. art. 18, § 6 and art. 2, § 31. See Rule 23(a), Ariz.R.Civ.App.P., 17B A.R.S. We granted review; believing that the statute in question also implicated the protections guaranteed under article 18, § 5, we ordered supplemental briefing and heard oral argument. Because of our disposition of this case, we need not address the other challenges.2

DISCUSSION

A. Dram Shop Liability

Prior to 1983, an Arizona seller of alcoholic beverages who negligently furnished alcohol to a customer was not liable for resulting “dram shop” type injury. See, e.g., Collier v. Stamatis, 63 Ariz. 285, 162 P.2d 125 (1945); Pratt v. Daly, 55 Ariz. 535, 104 P.2d 147 (1940).

[423]*423The rule of tavernkeepers’ nonliability was based on concepts of foreseeability and proximate cause. In first holding tavern-keepers not liable for injuries that resulted from their negligence in serving impaired or underage patrons, we stated:

[I]t has been held by all the courts and by every commentator that the proximate cause, as the expression is understood in the law of torts, of the resultant effects arising from voluntary intoxication is the act of the drinker, and not the seller of the beverage.

Collier, 63 Ariz. at 290, 162 P.2d at 127 (emphasis added).

In 1983, we disapproved of Collier and Pratt, holding that the “common law doctrine of tavern owner non-liability is abolished in Arizona.” Ontiveros v. Borak, 136 Ariz. 500, 513, 521, 667 P.2d 200, 213, 221 (1983); Brannigan v. Raybuck, 136 Ariz. 513, 521, 667 P.2d 213, 221 (1983). We held that the rule in Arizona was that

[t]avern owners and other licensed sellers in Arizona will be under a duty of care and may be held liable when they sell liquor to an intoxicated patron ... under circumstances where the licensee ... know[s] or should know that such conduct creates an unreasonable risk of harm to others who may be injured either on or off the premises. [Footnote omitted.] If the duty of care is breached, the seller will be liable for the damage caused by his negligence.

Ontiveros, 136 Ariz. at 513, 667 P.2d at 213.

Our holdings in Ontiveros and Branni-gan simply abolished the judicially created doctrine that as a matter of law principles of causation prohibited imposing liability on a negligent seller of alcoholic beverages. Indeed, the former rule had never been uniformly applied. Even before Ontiveros and Brannigan, it had been the common law rule in Arizona that a tavernkeeper could be liable if his negligence in operating his establishment led to one of his patrons injuring another. See, e.g., McFar-lin v. Hall, 127 Ariz. 220, 619 P.2d 729 (1980).

Section 4-312 partially overturns both Ontiveros and McFarlin by declaring that the licensee cannot be held liable for his or her negligence in furnishing alcohol to any customer who was served or to any person who was present when the customer was served and who knew of the customer’s impaired condition. The statute, in effect, declares that because the person injured had engaged in certain conduct — drinking or being present with one who drank — the person injured may not recover.

Thus, the challenge to the statute raises an issue not considered in either Ontiveros or Brannigan, nor, for that matter, in McFarlin or any previous case.

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Cite This Page — Counsel Stack

Bluebook (online)
793 P.2d 1088, 164 Ariz. 421, 58 Ariz. Adv. Rep. 11, 1990 Ariz. LEXIS 63, Counsel Stack Legal Research, https://law.counselstack.com/opinion/schwab-v-matley-ariz-1990.