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Hoeller v. Riverside Resort Hotel

5/21/1991

v. Silverman, 146 Ariz. 41, 46, 703 P.2d 1190, 1195 (1985); Ambrose, 151 Ariz. at 531, 729 P.2d at 335; Gordon v. Kramer, 124 Ariz. 442, 445, 604 P.2d 1153, 1156 (App.1979). Applying Arizona law here would tend to further both of these basic policies. Applying Nevada law would ensure their frustration.


As the forum state and the domicile of the injured parties, Arizona has a strong interest in providing an opportunity for its residents to recover full compensation from persons and businesses that contribute to automobile accidents on Arizona's highways. Equally strong is Arizona's interest in holding tortfeasors responsible for their actions' foreseeable effects in Arizona. As our supreme court observed in Ontiveros:


The statistics cited in the concurring opinion in State ex rel. Ekstrom v. Justice Court, 136 Ariz. 1, 663 P.2d 992 (1983), indicate a frightful toll -- 25,000 deaths and 650,000 injuries each year in motor vehicle accidents in which alcohol is a contributing cause. We believe, therefore, that the words of Division II of our Court of Appeals are correct:


It seems clear that the common law rule is an anachronism, unsuitable to our present society, and that its reasoning is repugnant to modern tort theories.


Lewis v. Wolf, 122 Ariz. at 570, 596 P.2d at 708 (App.1979). We agree with the Pennsylvania Supreme Court that "(t)o serve an intoxicated person more liquor is to light the fuse." Jardine v. Upper Darby Lodge No. 1973, Inc., 413 Pa. 626, 632, 198 A.2d 550, 553 (1964).


136 Ariz. at 507, 667 P.2d at 207. Arizona has a strong interest in applying its substantive law in this case.


Against the interests of Arizona we must weigh those of Nevada, the casino's place of business and the place where the conduct that allegedly caused the Hoellers' injuries occurred. In Hamm, the Nevada Supreme Court considered whether to abandon the common-law rule of the nonliability of tavern owners. The court held that if civil liability were to be imposed on tavern owners who serve intoxicated persons who later injure others, it should be accomplished by legislative act after appropriate surveys, hearings and investigations have been conducted to ascertain the need for the imposition of civil liability and the expected consequences. 85 Nev. at 100, 450 P.2d at 359.


The Nevada legislature has enacted no provision imposing civil liability on tavern owners who negligently serve intoxicated persons and thereby contribute to injuring others. Indeed, in 1973, the Nevada legislature repealed a statute that had provided criminal penalties for selling, giving or furnishing intoxicating liquor to habitual drunkards or adults known to be intoxicated. 1973 Nev.Stat.Ch. 604, § 8, repealing Nev.Rev.Stat. § 202.100. The Nevada case law and statutes thus suggest that that state's policy is to free tavern owners, and other alcohol purveyors such as casinos, from the cost and inconvenience of incurring either civil or criminal liability in the operation of their businesses. Because Nevada is the place where the casino does business and the place where it allegedly engaged in the conduct on which the Hoellers base their action, Nevada has a significant interest in applying its law to determine the question whether the casino may be held civilly liable.


The goals of justified expectations and predictability of result weigh in favor of applying Arizona law, however. The casino advertises in majo

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