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Page 1 of 2 Joel Hanson From: Tritz, Pete [PTritz @LMNC.ORG] Sent: Wednesday, August 24, 2005 10:49 AM To: Joel Hanson Subject: liquor liability limits Joel - Whether the statutory municipal tort liability limits would apply to a dram shop claim against a municipal liquor store is a good question. The tort limit is found in M.S. 466.04. M.S. 466.15 says that M.S. 466.01- 466.15 don't modify the dram shop act. On its face, that would seem to mean that the 466.04 limit wouldn't apply to a dram shop claim. However, there are a couple of appeals court cases in which the courts have seemed to imply that the municipal caps would apply to a dram shop claim against the city. If a case came up, we'd certainly argue vigorously that the tort caps should apply to a dram shop claim against the city. But from the city's standpoint in thinking about how much of a coverage limit to carry, I think you have to assume that there's a possibility that the tort limits won't apply to a dram shop claim and that the city's potential liability may therefor be unlimited, and plan accordingly. On a claim made against the city based on the city's role in licensing and regulation (as opposed to sales), it's more clear. The limits would normally apply to that kind of claim against the city. The only exception would be if the claimant were able to figure out a way to make his claim under federal law (as a civil rights suit, for example), rather than under state tort law. In most cases, it probably wouldn't be possible to bring that suit that way, but it's at least conceivable that with the right set of facts it could be done. Sorry I can't be more definite, but I hope this helps. Holler if you need anything else. Pete From: Joel Hanson [ mailto :joel.hanson @ci.little - canada mn us] Sent: Tuesday, August 23, 2005 3:49 PM To: Tritz, Pete Subject: A quick one for you: Do statutory limits of liability cover liquor liability claims for a municipal liquor store? If a claim was made against a licensed bar and then the City was named, but not involved in the sale - only the licensing authority, would our statutory limits protect us? JH This email has been scanned by the MessageLabs Email Security System. For more information please visit http : / /www.messagelabs.com/email This email has been scanned by the MessageLabs Email Security System. 8/24/2005