With the Calgary Stampede fast approaching, it is time for corporations, employers and
individuals to ensure that they fully understand their responsibilities and liabilities as hosts.
There are three types of hosts we will examine in this blog. Casual or Social hosts such as hosts
of house parties, are subject to the least stringent responsibilities, whereas Commercial hosts
such as bars and restaurants have a greater duty to protect intoxicated or impaired individuals
and the public. And finally, Business hosts (or employer/corporate hosts) hosting work
functions have the highest duty to their employees and attendees at a social function due to
the special relationship that is created between an employer and its employees.

Social Host

As a social host it is important to understand that you as an individual may be held liable for the
actions of your guests, even after they have left your premises. In a Supreme Court of Canada
case known as Childs v Desormeaux, 2006 SCC 18, the court ruled that the host is not
liable to monitor their guests “unless the host’s conduct implicates him or her in the
creation or exacerbation of the risk. In this case, the defendant hosted a “BYOB” (bring
your own booze) party, and as a result, the court ruled that as a host they were not
responsible for how much their guests drank as they essentially managed their own
alcohol and did not serve them. However, if the host for example, had provided any
alcohol to their guests, and the host knew the guest was intoxicated, and then the guest
unfortunately made the decision to drink and drive after the party, causing a serious
motor vehicle collision which injured third parties, the host of the party might be liable
for damages to the third parties.

As such, if you, as a social host are serving alcohol or cannabis related products at your
premises, and one of your guests becomes intoxicated and makes the decision to drive,
and you make zero attempts at intervention, you have a high chance of being held liable
if the outcome caused injuries to your guest or a third party.

Commercial Hosts

In terms of commercial hosts, such as bars and restaurants, the liability is much more
stringent, as is the responsibility of the commercial host’s employees. The Supreme
Court of Canada has recognized that businesses are under an obligation to intervene in
appropriate circumstances (such as to prevent over-serving, or to intervene when a
patron is intoxicated and clearly unable to drive, such as contacting police if their efforts
are unsuccessful), or they risk liability. When an establishment serves alcohol to a
patron, they are to be under the assumption that there is a risk of that individual

driving, which causes a risk to the safety of that patron and the public. Employers must
ensure that their staff are well trained and informed of this duty of care. As seen in the
case of Stewart v Pettie, (1995) 1 SCR 131 (SCC), although the claim was unsuccessful for
other reasons, it was the owner of the establishment who was sued when its employees served
drinks at a movie theatre to patrons who later drove. Thus, it is very important for employers to
understand their liability when it comes to serving in their establishments. Also, it’s important
to ensure your employees are trained in ProServe and know their liability as well. This will show
your due diligence to the courts should the worse happen.

Business/ Employer Hosts

And last but not least, if you yourself are an employer and decide to throw a function for your
employees and/or clients where alcohol or cannabis products are served, you may also be held
liable for their actions as a result. As an employer, corporate responsibility towards employees,
guests and others arise as soon as a business provides alcohol or cannabis products or
encourages its consumption while the employee or client is under the company’s control. An
employer has a duty to provide a safe workplace. This includes being at work related functions.
Your company’s policy manual should outline procedures for best practices in these situations
such as the provision of Ubers, taxis or designated drivers, monitoring intoxicant consumption,
and having a strict drug and alcohol policy for employees and contractors for work related
functions.

In terms of your liability as an employer, you can be directly liable or vicariously liable. With
direct liability, the employer is liable to the injured party if the act occurred due to that
employers’ own negligent acts or omissions. The employer can also be held liable through
vicarious liability based on the acts or omissions of their employees who have injured another
party.

By shifting the liability from the employer to a commercial host (hosting the function in a
restaurant or bar), you may mitigate the majority of the liability, but not all of it.
The first case in Canada to apply host liability at the workplace was in Jacobsen v Nike Canada
Ltd., [1996] B.C.J No. 363 (S.C.). The employer, Nike Canada was held liable for the injuries of
one of its employees who they served alcohol to during a work function. This employee later
went on to another commercial host and drank more alcohol, then drove their vehicle home
where they sustained serious injuries as a result of a motor vehicle accident, which left the
employee a quadriplegic. The employee, sued Nike and the court found them liable, stating that
it owed the employee a standard of care and served alcohol to him without monitoring the
employee’s consumption or ensuring that the employee did not drive while impaired. The total
damages for the employees’ injuries, (which Nike was 75% liable for) exceeded $2.5 million.

Thus, as an employer it is VERY important to ensure that you are monitoring your employees
and clients and other guests during your functions if your plan is to host a work-related
function, as well as during those fun Friday afternoon work drinks. If you are unaware or
negligent to your duty of care during what is intended to be a goodwill/ employee bonding
situation, this may end up costing you millions of dollars but not least of all, it could cost
someone their life.

If you have questions on how to limit your liability for the upcoming summer party and
Christmas season such as drafting employment policies related to work related functions etc.,
please contact Kim Nutz, Senior Legal Counsel.