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|  | | | CHARLESTON: 126 Seven Farms Drive, Suite 200 Charleston, SC 29492 MAP CHARLOTTE: 756 Tyvola Road, Suite 130 Charlotte, NC 28217 MAP | | | | | South Carolina Supreme Court: Civil Liability for Serving Alcohol to Minors
As of February 1, 2007, persons who serve alcohol to minors may be liable for forseeable injuries to the minors and third persons. This rule already applies to persons or businesses who sell alcohol to minors (typically stores, bars, restaurants), but now also applies to adults who simply serve alcohol to minors.
The ruling will apply to claims after the date of the opinion. The opinion contains a footnote which expressly leaves open the question of whether an adult will be liable for negligently allowing a child to be provided alcohol.
Underage drinking is an enormous societal issue. Various estimates suggest that perhaps as many as 20% of the motor vehicle accidents involving 16-20 year olds involve alcohol. Given those numbers, it is likely this issue will be regularly raised in the coming years.
Homeowner’s insurers in particular will likely see an increase in claims of this type.
But, the decision may present new issues for auto insurers as well. It is likely some social host defendants will be joined with auto defendants in one suit. In other cases, auto carriers may view the social host as a source of contribution during settlement discussions or post-verdict.
Business insurers may also see an increase in claims. Business insurers and risk managers should note the decision of the South Carolina Supreme Court arose of two separate company-sponsored parties.
Carriers will also need to quickly review any coverage issues connected with these claims. Exclusions vary from company to company, but several homeowner’s/CGL exclusions may apply depending on the facts of the case. The typical exclusion for injuries arising out of the use of an motor vehicle owned, operated by or loaned to or rented to any insured may apply, depending on whose car is involved in the accident. Also insured versus insured type exclusions may apply in some situations such as where a family member provides alcohol to a minor who then attempts to sue for his or her own injuries.
About Us and this Publication:
This is an effort to keep our clients and friends in the insurance industry informed as to legal news in South Carolina. Our goal is to alert you to important issues related to claims you may be called upon to handle. We may provide information on new cases, verdicts, or other matters of interest to persons who may handle insurance claims in South Carolina.
If you have any questions, concerns or requests, please contact Tim Domin at 843 577 2026 or E-Blast. This is not a solicitation and this publication is entirely free. We simply enjoy sharing our special knowledge with our clients and friends.
Clawson and Staubes, LLC is approved counsel for many major insurance companies. Our Charleston Office generally services the area from I-95 to the coast of South Carolina. Our Charlotte office handles the area immediately around Charlotte, North Carolina including York, Chesterfield, and Greenville Counties in South Carolina as well as various counties in North Carolina.
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