Multi-national entertainment company Live Nation scored a victory in court recently when a United States District Court for the District of New Jersey, granted a motion to dismiss claims against the company in a case involving allegations of negligence and Dram Shop liability. The plaintiffs, Jihad Alsaidi, Ahlam Alsaidi, Mohamed Alwajeh, and Mujahed Y. Alsaidi, brought the case on March 10, 2023, following a severe car accident allegedly caused by an intoxicated driver who had been served alcohol at a Live Nation venue.
Dram shop liability laws speaks to when a customer buys a drink, leaves that location, and then causes harm, the owner of the place where the drink was served is legally responsible.
According to the 15 page document obtained by WMV, The incident occurred on December 10, 2021, when the plaintiffs were traveling on the New Jersey Turnpike and were rear-ended by Craig J. Hubert, who was under the influence of alcohol. The collision resulted in serious injuries and significant damages to the plaintiffs. The plaintiffs alleged that Hubert became intoxicated at The Fillmore Philadelphia, a venue owned and operated by Live Nation, during an event where alcohol was served by Wolfgang Puck Catering and Events, LLC.
The event that was held at the Fillmore on the day was a concert by Long Island, New York’s alternative hardcore band Stray From The Path. The band was not listed as a defendant.
The plaintiffs filed claims against Live Nation, Wolfgang Puck Catering, and Hubert, asserting that Live Nation was negligent in permitting Hubert to remain on the premises while visibly intoxicated. They argued that Live Nation should have implemented measures to prevent intoxicated individuals from driving.
Live Nation, which generated 22 billion dollars last year, filed a motion to dismiss the claims, arguing that under Pennsylvania law, which governed the case, they owed no duty to the plaintiffs. The court analyzed whether Live Nation, as a non-licensee of alcohol, had a duty to prevent the harm caused by an intoxicated guest.
The court referred to the Pennsylvania Supreme Court’s decision in Klar v. Dairy Farmers of America, Inc., which held that an organization that hosts an event where alcohol is provided but is not a liquor licensee cannot be held liable for injuries caused by an intoxicated guest. This precedent established that non-licensees do not have a duty under common law negligence or the Pennsylvania Dram Shop Act to prevent harm caused by intoxicated individuals once they leave the premises.
Additionally, the court considered the Althaus factors to determine whether to impose a new duty on Live Nation. These factors include the relationship between the parties, the social utility of the actor’s conduct, the nature of the risk imposed, the consequences of imposing a duty, and the overall public interest.
District Judge Christine P. O’Hearn concluded on April 26, 2024 that:
- Relationship Between the Parties: There was no direct relationship between Live Nation and the plaintiffs. The relationship was between Live Nation and Hubert, the invitee.
- Social Utility: While Live Nation provides social utility by hosting events, imposing a duty to control the actions of intoxicated individuals beyond the premises was not justified.
- Nature of the Risk and Foreseeability: The risk of harm from intoxicated individuals was recognized, but existing laws place this responsibility on liquor licensees, not on entities like Live Nation.
- Consequences of Imposing a Duty: Extending the duty to non-licensees would have significant, unpredictable consequences and could place an undue burden on such entities.
- Public Interest: The public interest did not support imposing such a duty, especially when the state Supreme Court had already declined to do so in similar contexts.
Given these considerations, the court found no basis to impose a new duty on Live Nation. The motion to dismiss the claims against Live Nation was granted, effectively absolving the company of liability in this case.
