Tag Archives: Liquor Liability

Hospitality Industry Legal Risks: New Jersey Restaurant Group Fined $500,000 For “Substituting And Selling Cheap Liquor For Premium Brands”

“…The fine includes $400,000 for the violations and $100,000 to cover investigative costs…at one of the 29 businesses, a mixture that included rubbing alcohol and caramel coloring was sold as scotch. In another, premium liquor bottles were refilled with water that was not even clean. Restaurant Liquor Sales Liability 1The state never identified which restaurants or bars those were…The franchisee also faces a lawsuit in state court by two women who claim Briad had instituted a uniform policy to substitute cut-rate liquor for premium brands for during at least a year, in violation of the New Jersey Consumer Fraud Act. It seeks reimbursement for all customer losses and punitive damages of three times the price of each drink…”

An operator of TGI Fridays restaurants in New Jersey has agreed to pay a $500,000 fine for serving customers cheap booze when they paid for top shelf. Acting Attorney General John Hoffman said Wednesday that the fine levied against Livingston-based Briad Group, as a result of an investigation dubbed Operation Swill, should send a message to every bar and restaurant in the state that customers should always get what they pay for.

Under terms of the settlement, Briad agreed not to contest charges that eight of its restaurants were selling customers cheap substitutes in place of premium alcohol. It also agreed to employ a state-appointed monitor through June 14 to ensure its restaurants and employees are in compliance.

As long as there are no further violations during that period, the businesses will avoid five-day suspensions of their liquor licenses, the attorney general said.

For more:  http://www.bostonglobe.com/business/2013/07/31/tgi-fridays-fined-for-switching-liquor/tFC5CnrWxLByqT35hxVI6J/story.html

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Filed under Guest Issues, Liability, Management And Ownership, Risk Management

Hospitality Industry Alcohol Risks: Hotels And Restaurants Hosting "Office Parties And Charity Events" Need To Insure Against "Liquor Liability"

“…office parties and charity events…can provide opportunities for professionals to mingle casually with their co-workers and clients and can help boost employee morale…(but) they can also prove to be a liability for businesses that serve alcohol…”

“…when business owners host a holiday party and serve alcohol as part of the festivities, liquor liability would most likely be covered by their commercial general liability (CGL) policy…”

 “…In addition to a CGL policy, businesses should also consider purchasing an Employment Practices Liability Insurance (EPLI) policy. An EPLI policy will protect a business from discrimination, sexual harassment, emotional distress, and other workplace-related issues…”

  • Forty-four states plus the District of Columbia have enacted liquor liability laws
  • These laws make it possible for a plaintiff to hold those who serve alcohol to an intoxicated or underage person responsible for any damage or injury caused by these same individuals after they leave the party
  • Most of these laws also offer an injured person, such as the victim of a drunk driver, a method to sue the person who served the alcohol
  • There are circumstances under these same state laws where criminal charges may also apply
  • Liquor liability laws were intended originally to apply to taverns, bars, and other establishments selling and serving alcohol

However, the liability laws have expanded over time to include “social hosts” (such as those holding a holiday party in their home or business) in some states giving them some exposure to the risk of liability for serving alcohol.

“If you are throwing an office party where alcohol is served, you have a responsibility to make sure that your employees are capable of driving safely.”

For more:  http://insurancenewsnet.com/article.aspx?id=319206

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Filed under Guest Issues, Health, Injuries, Insurance, Labor Issues, Liability, Management And Ownership, Risk Management, Training