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DRAM SHOP LIABILITY

The liability of a tavern keeper for injuries caused by intoxicated patrons to other people has a long history in Arizona, because the law previously under the common-law rule was that a tavern owner is not liable for an off-premises injury caused by the acts of an intoxicated person, even when the tavern owner was negligent in over-serving the intoxicated customer, contributing to the accident.

That changed with Ontiveros v. Borak, 136 Ariz. 500, 667 P.2d 200 (1983), etc., which abolished this common-law rule.  Because there is an Arizona statute that forbids liquor licensees from serving alcohol to intoxicated persons, the Court applied ordinary principles of negligence law in dram shop cases.  Under this analysis, the seller of alcohol “may be held liable when they sell liquor to an intoxicated person . . . under circumstances where the [seller] . . . know[s] or should know that such conduct creates an unreasonable risk of harm to others who may be injured either on or off premises.”