## Facts

- Miles A. Vesely alleged he was injured when his car was struck by an intoxicated driver, James G. O’Connell, shortly after O’Connell left the Buckhorn Lodge.
- William A. Sager owned and operated the Buckhorn Lodge, a business selling alcoholic beverages to the public.
- The complaint alleged Sager served, or allowed O’Connell to be served, large quantities of alcohol while O’Connell was becoming excessively intoxicated.
- The complaint further alleged Sager knew O’Connell was obviously intoxicated and unable to control his consumption like an average reasonable person.
- Sager allegedly knew the only way to leave was a steep, winding, dangerous mountain road and that O’Connell would use it.
- Sager allegedly continued service after the hour at which sales were prohibited by law, violating Business and Professions Code § 25602.
- Vesely claimed Sager’s statutory violation and negligent service of alcohol were legal causes of his personal injuries and property damage.

## Issues

1. Whether a commercial vendor may be civilly liable to a third person injured by an intoxicated customer when the vendor furnished alcohol in violation of Business and Professions Code § 25602 and the elements of Evidence Code § 669 (negligence per se) are satisfied.
2. Whether the trial court properly removed the vendor from the case by sustaining a demurrer and granting a nonstatutory “speaking” motion to strike or dismiss.
3. Whether the furnishing of alcohol can be a proximate cause of third-party injury under a substantial-factor causation analysis despite the patron’s intervening consumption and driving.

## Decision

- The California Supreme Court reversed the judgment for Sager and remanded.
- The court rejected the traditional common-law rule that furnishing alcohol is not, as a matter of law, a proximate cause of injuries caused by an intoxicated patron.
- The court held civil liability may be imposed when a commercial vendor violates Business and Professions Code § 25602 by furnishing alcohol to an obviously intoxicated person and the conditions of Evidence Code § 669(a) are established.
- The court treated the nonstatutory speaking motion to strike or dismiss as a motion for summary judgment under Code of Civil Procedure § 437c.
- Because the pleadings raised triable issues (including statutory violation and causation), summary judgment/dismissal for Sager was improper.

## Legal Principles

- Proximate cause in negligence turns on whether the defendant’s conduct was a substantial factor in causing harm; liability is not automatically cut off because other forces (including the patron’s acts) contributed to the injury.
- It is foreseeable that serving alcohol to an obviously intoxicated customer may result in the customer driving and creating an unreasonable risk of harm to others; foreseeable intervening conduct does not necessarily break the causal chain.
- Under Evidence Code § 669(a), violation of a statute may create a presumption of failure to use due care when: (1) a statutory violation occurred, (2) it proximately caused injury, (3) the injury resulted from an occurrence the statute was designed to prevent, and (4) the injured person was within the protected class.
- Business and Professions Code § 25602 functions as a public-safety statute aimed at preventing injuries to members of the public from intoxicated persons; third parties injured by drunk driving are within the statute’s protective scope.
- A nonstatutory speaking motion that relies on matters beyond the pleadings should be treated as a motion for summary judgment and may be granted only if no triable issue of material fact exists.
- The decision did not resolve whether noncommercial furnishers are subject to civil liability under § 25602 or whether the intoxicated person served in violation of the statute may recover for resulting injuries.

## Conclusion

The court held that a commercial alcohol vendor may face tort liability, via negligence per se, for serving an obviously intoxicated patron in violation of Business and Professions Code § 25602 when the statutory elements of Evidence Code § 669 are met, and it reinstated the action because the vendor’s dismissal on a speaking motion was procedurally improper and factual issues remained for trial.


Vesely v. Sager, 5 Cal. 3d 153 (Cal. 1971)