Bill would increase bartender and liquor licensee liability

The Judiciary Committee heard testimony March 3 on a bill that would create a cause of action against bartenders or liquor license holders that serve alcohol to an intoxicated person.

LB693, introduced by Holdrege Sen. Tom Carlson, would give a person who sustains injury or property damage, or the estate of any person killed as a direct result from negligence of an intoxicated person, a cause of action against the licensee who served alcohol to the intoxicated person.

The bill also would require retailers to have liability insurance in an amount determined by the Nebraska Liquor Control Commission.

Selling liquor by the drink to an obviously intoxicated person is not showing responsible service, Carlson said. LB693 creates a cause of action, in addition to those available in tort law, against a server who knew a person would become intoxicated, he said.

“My feelings of anger are heightened when I read about someone being killed by a drunk driver,” Carlson said.

Tom Osborne, athletic director for the University of Nebraska – Lincoln, testified as an individual in support of the bill, saying that drinking establishments have some liability in alcohol-related incidents.

“A person serving drinks is in the best position to know when the overconsumption of alcohol is occurring,” Osborne said.

Anna Jo Cowan, whose father was killed by a drunk driver, testified in support of the bill.

Cowan said the woman who caused the accident was overserved at a bar and allowed to drive while intoxicated. The driver’s blood alcohol content was 0.146, she added. The legal limit is 0.08.

“I will not forget that night and I definitely will not forget that pain,” Cowan said. “Every other business has to have liability insurance — why should that exclude the bar industry?”

Robert Moodie, representing the Nebraska Association of Trial Attorneys, also testified in support of LB693, saying a plaintiff must establish that a licensee served alcohol to someone they knew was intoxicated already. There is a burden of proof on those making a claim under the bill, he added.

“This does not shift responsibility for these accidents away from the drunk driver,” Moodie said. “It is an additional consequence.”

Troy Falk, owner of Doc’s Place in Lincoln, testified in opposition to the bill, saying his staff is trained not to overserve alcohol to customers.

“As a small business owner, my number one goal is the safety of my employees and patrons,” he said.

In addition, Falk said, LB693 is not needed because current laws already address the issue.

Brian Kitten, owner of Brewsky’s sports bar, also testified in opposition to the bill, saying the requirement for liability insurance could be overwhelming for small business owners.

“It would be plausible that I could face over $50,000 in insurance [premiums] per year,” Kitten said, which could force him to lay off employees.

The committee took no immediate action on the bill.