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Hoeller v. Riverside Resort Hotel

5/21/1991



In this case, a Nevada casino is claimed to have negligently served alcohol to an obviously intoxicated Arizona resident who later caused an automobile accident in Arizona, injuring four other Arizona residents. This appeal presents the question of which state's law should be applied to the Arizona residents' claims against the Nevada casino.


FACTS AND PROCEDURE


For purposes of the motion for summary judgment, the parties agreed in substance on the facts material to the conflict of laws issue. The Riverside Resort Hotel & Casino ("the casino") is located in Laughlin, Nevada, on the Colorado River, across from Bullhead City, Mohave County, Arizona. It operates under a Nevada gaming license and a Nevada liquor license. The casino advertises in the Bullhead City area and other surrounding communities in Mohave County, as well as in a significant number of urban markets in and out of Arizona. The record suggests that the casino may maintain a large parking facility on the Arizona side of the river, as well as a ferry operation across the river for casino patrons, and it also may have contributed to the costs of building a bridge across the river.


On December 15, 1985, Elmer Eugene Tyler, an Arizona resident, spent time gambling and drinking alcohol at the casino. The casino continued to serve Tyler after he became intoxicated. Indeed, casino employees later had to help Tyler to his car. At approximately 6:00 p.m. on that day, Tyler was returning home from Laughlin, driving south on Interstate 95. Near Bullhead City, he crossed the centerline and collided head-on with the Hoellers' northbound vehicle. The Hoellers, residents of Arizona, were seriously injured.


The Hoellers brought this negligence action against the casino in Mohave County Superior Court. The casino moved for summary judgment, in part on the theory that the applicable choice of law principles required the court to apply Nevada law to the Hoellers' claims against the casino. Nevada follows the traditional rule that a liquor vendor cannot be held responsible to third persons for injury or death caused by an intoxicated driver. Hamm v. Carson City Nugget, Inc., 85 Nev. 99, 101, 450 P.2d 358, 360 (1969). The Hoellers opposed the motion, arguing that the court should apply the common law of Arizona, which imposes on tavern owners a duty to exercise reasonable care not to provide liquor to intoxicated persons under circumstances when they know or should know that to do so creates an unreasonable risk of harm to others who may be injured either on or off of the premises. Ontiveros v. Borak, 136 Ariz. 500, 511, 667 P.2d 200, 211 (1983).


After argument, the trial court issued a minute entry expressing its conclusion that Nevada law must control and that the court therefore had no alternative than to grant the casino's motion for summary


judgment. The court's ruling stated in part:


The Nevada courts have determined it is up to their legislature to impose liability upon the liquor vendor for the results of conduct of their patrons and absent such legislation, the liquor vendor has no liability to injured third parties. Hamm v. Carson City Nuggett [ Nugget ], Inc., 450 P.2d 358. Although the reasoning of the Arizona case of Ontiveros v. Borak, 136 Ariz. 500, 667 P.2d 200 is more appealing to this Court and reaches a "better result" with regard to the issue of liability of licensed liquor vendors, this Court believes our appellate courts will follow the reasoning of the Idaho court as set forth in Estates of Braun v. Cactus Pete's, Inc

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