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Smart Summary

Factual and Procedural Background

Plaintiff, a passenger in defendant Stephen Campbell's automobile, suffered serious injuries when Campbell drove off the road and struck a tree. Plaintiff sued defendant Hughes, a licensed seller of alcoholic beverages, under the dramshop statute, alleging Hughes illegally sold intoxicating liquor to a visibly intoxicated Campbell. Defendant Hughes moved for summary judgment; the trial court granted summary judgment under GCR 1963, 117.2(3). After plaintiff filed an amended complaint adding a common-law gross negligence count against Hughes (alleging sale to Campbell when he was visibly intoxicated and ejecting Campbell knowing he had no other means of transportation), Hughes moved for summary judgment under GCR 1963, 117.2(1). The trial court granted the second motion as well. Plaintiff appealed both orders as of right. The Court of Appeals affirmed.

Legal Issues Presented

  1. Whether, for purposes of the dramshop statute, the purchase of "rounds" of liquor (where each purchaser buys a drink for every participant) constitutes purchasing liquor for another such that the purchaser is a "noninnocent" party and barred from recovery.
  2. Whether a plaintiff who actively participates in producing the intoxication of the driver is precluded from recovery under the dramshop statute.
  3. Whether the doctrine of comparative negligence applies to statutory dramshop actions, or whether the dramshop statute is an exclusive statutory remedy that precludes applying comparative negligence.
  4. Whether the amended complaint stated a legally cognizable common-law claim (gross negligence or wilful/wanton misconduct) apart from the dramshop statute, particularly under the Grasser exception for serving a known compulsive alcoholic.

Arguments of the Parties

Plaintiff's Arguments

  • The purchase of "rounds" of liquor amounted only to buying drinks for oneself, not for others; therefore plaintiff was not a noninnocent party and should be permitted to pursue the dramshop action against Hughes.
  • The doctrine of comparative negligence should apply to bar or diminish plaintiff's recovery where an injured party actively participated in causing the intoxication, rather than barring recovery outright.
  • In the amended complaint, plaintiff alleged gross negligence by Hughes in selling to Campbell when already visibly intoxicated and in ejecting Campbell knowing he had no other transportation; this alleged common-law claim should survive a motion to dismiss for failure to state a claim.

Defendant Hughes' Arguments

  • Summary judgment was proper because deposition testimony showed plaintiff and Campbell drank in "rounds"—a purchase method that amounted to buying drinks for others—so plaintiff actively participated in Campbell's intoxication and is a noninnocent party barred from recovery under the dramshop act.
  • The dramshop statute is the exclusive remedy for injuries arising from unlawful sales by licensed retailers; plaintiff's amended complaint did not plead facts (such as that Campbell was a known alcoholic) to bring his claim within the Grasser exception or otherwise state a legally cognizable common-law claim against a licensed seller.

Table of Precedents Cited

Precedent Rule or Principle Cited For Application by the Court
Kangas v Suchorski, 372 Mich. 396; 126 N.W.2d 803 (1964) Used by the trial court as authority that buying drinks for others affects a plaintiff's innocence under dramshop law. The appellate court noted the trial court relied on Kangas in concluding buying rounds amounted to buying for another and therefore supported finding plaintiff noninnocent.
Malone v Lambrecht, 305 Mich. 58, 60; 8 N.W.2d 910 (1943) Principle that one who actively brings about the alleged intoxication may not recover for injuries sustained therefrom. The court treated active participation in causing intoxication as dispositive: if plaintiff actively participated, he may not recover under the dramshop act.
Todd v Biglow, 51 Mich. App. 346, 351; 214 N.W.2d 733 (1974) Supports the Malone principle regarding non-recovery by those who actively bring about intoxication. Used with Malone to frame the material legal question: whether plaintiff actively participated in causing Campbell's inebriation.
Rizzo v Kretschmer, 389 Mich. 363; 207 N.W.2d 316 (1973) When deciding summary judgment, the trial court must consider affidavits, depositions, interrogatories, or the entire record. The court applied this standard in evaluating whether a genuine issue of material fact existed regarding plaintiff's status as a noninnocent party.
Partrich v Muscat, 84 Mich. App. 724; 270 N.W.2d 506 (1978) To grant summary judgment, the court must be satisfied it is impossible for the claim to be supported by evidence at trial. The court applied this standard in affirming summary judgment after concluding no factual development could justify plaintiff's dramshop claim given the record.
Dahn v Sheets, 104 Mich. App. 584, 591; 305 N.W.2d 547 (1981), lv den 412 Mich. 928 (1982) Supports the conclusion that participation in buying/consuming rounds can constitute active participation in the intoxication; also relied on for rejecting comparative negligence in dramshop actions. The court cited Dahn to conclude plaintiff's participation in rounds amounted to active participation in Campbell's intoxication and to reject plaintiff's comparative negligence argument.
Placek v Sterling Heights, 405 Mich. 638; 275 N.W.2d 511 (1979) Cited by plaintiff in support of applying comparative negligence principles. The court considered and rejected plaintiff's invocation of Placek, holding comparative negligence does not extend to statutory dramshop actions.
Browder v International Fidelity Ins Co, 413 Mich. 603, 615-616; 321 N.W.2d 668 (1982) Holds the dramshop statute is a legislatively created exclusive remedy, not a common-law negligence action. The court relied on Browder to conclude that comparative negligence (a common-law doctrine) does not apply to a statutory dramshop action.
Lucido v Apollo Lanes Bar, Inc, 123 Mich. App. 267, 270-271; 333 N.W.2d 246 (1983) Supports the proposition that dramshop actions are statutory and not common-law negligence actions. Used to reinforce that the dramshop statute is the exclusive remedy and comparative negligence is inapplicable.
Grasser v Fleming, 74 Mich. App. 338; 253 N.W.2d 757 (1977) Recognized a limited common-law action for gross negligence or wilful, wanton, or intentional misconduct where a licensed establishment sold alcohol to a known compulsive alcoholic contrary to a promise to refrain. The court noted Grasser but found its exception inapplicable because plaintiff did not allege Campbell was a known alcoholic; thus the amended complaint did not state a Grasser-type common-law claim.
Romeo v Van Otterloo, 117 Mich. App. 333, 337; 323 N.W.2d 693 (1982) Explains that a motion under GCR 1963, 117.2(1) tests the legal sufficiency of the pleadings alone, with factual allegations presumed true. The court applied the Romeo standard in evaluating Hughes' motion to dismiss the amended complaint and distinguished Romeo on the facts (Romeo's defendant was not a licensed seller).

Court's Reasoning and Analysis

The court first identified the material legal question as whether plaintiff actively participated in causing Campbell's inebriation, not whether purchasing rounds constitutes purchasing for another. Citing Malone and Todd, the court held that a person who actively brings about another's intoxication may not recover under the dramshop statute.

Applying the summary-judgment standards of Rizzo and Partrich, the court reviewed the entire record (depositions and affidavits). The undisputed testimony showed plaintiff, Campbell, and another participant drank in "rounds" in which the purchaser procured a beer and a shot for each drinker. The record established both plaintiff and Campbell consumed at least eight to ten beers and schnapps shots. Given these facts, the court concluded plaintiff's participation in buying and consuming rounds amounted to active participation in Campbell's intoxication.

On the question of comparative negligence, the court rejected plaintiff's argument that comparative negligence should replace the bar on recovery for active participants, citing Dahn and the principle that the dramshop statute is an exclusive statutory remedy (Browder, Lucido). Because comparative negligence is a doctrine applicable to common-law negligence actions, it does not extend to statutory dramshop claims.

Regarding the amended complaint asserting a common-law gross-negligence claim, the court analyzed the legal sufficiency under GCR 1963, 117.2(1) and Romeo. Although Grasser permits a limited common-law action where a licensed seller serves a known compulsive alcoholic contrary to a promise to refrain, the amended complaint did not allege Campbell was a known alcoholic. The court also observed that Romeo's common-law claims did not apply because the Romeo defendant was not a licensed seller. Consequently, the trial court correctly concluded the amended complaint failed to state a legally cognizable claim outside the dramshop statute.

Holding and Implications

Holding: The Court of Appeals affirmed the trial court's grant of summary judgment to defendant Hughes on both the original dramshop claim and the amended common-law claim. Affirmed.

Implications:

  • Because the record showed plaintiff actively participated in the intoxication of the driver by participating in rounds and consuming substantial alcohol, plaintiff was a noninnocent party and barred from recovery under the dramshop statute.
  • The dramshop statute is an exclusive statutory remedy for injuries arising from unlawful sales by licensed retailers; comparative negligence—being a common-law doctrine—does not apply to dramshop actions.
  • An attempted common-law claim for gross negligence against a licensed seller may be viable only under narrow circumstances (as recognized in Grasser, e.g., where the plaintiff alleges the defendant sold to a known compulsive alcoholic contrary to a promise to refrain); such circumstances were not alleged here, so the amended complaint failed to state a cognizable claim.

Direct effect: The summary judgments for defendant Hughes were affirmed, dismissing plaintiff's dramshop claim and the amended common-law claim. The opinion does not establish a new rule beyond application of existing precedents cited in the decision.

BARRETT v CAMPBELL

PER CURIAM.

Plaintiff appeals as of right from an order granting summary judgment, GCR 1963, 117.2(3), to defendant Hughes in a dramshop action, MCL 436.22; MSA 18.993, and from a second order of summary judgment, GCR 1963, 117.2(1), granted to defendant Hughes after plaintiff filed an amended complaint.

Plaintiff alleged in his complaint a dramshop action against defendant Hughes as a licensed seller of alcoholic beverages illegally selling intoxicating liquor to a visibly intoxicated person, defendant Stephen Campbell. Defendant Campbell allegedly drove his automobile off the road striking a tree while plaintiff was a passenger. Plaintiff suffered serious injuries.

Defendant Hughes filed a motion for summary judgment with an affidavit attached and with reference to deposition testimony. In its April 24, 1981, opinion granting the motion, the trial court treated the motion as one brought pursuant to GCR 1963, 117.2(3), no genuine issue of material fact. The court found that undisputed deposition testimony showed that plaintiff and defendant Campbell drank together at the Blue Boat Inn before the accident. They purchased their drinks in "rounds" with one or several other friends. This method of purchasing liquor was voluntary and cooperative and implied the expectation that each person would consume and purchase his per capita share. The trial court held that buying such "rounds" amounted to buying drinks for other people. Thus, the trial court found that plaintiff bought liquor for the intoxicated defendant, Campbell. By doing so, plaintiff was a noninnocent party under the drampshop act and, thus, was precluded from proceeding under the act. See Kangas v Suchorski, 372 Mich. 396; 126 N.W.2d 803 (1964).

Plaintiff argues that a genuine issue of fact remains: whether the purchase of "rounds" of liquor amounts to the purchase of liquor for another. Plaintiff states that the purchase of such "rounds" amounts only to the purchasing of liquor for oneself. Therefore, plaintiff argues, as he only purchased liquor for himself, he is not precluded from bringing this dramshop action against defendant Hughes.

We find that the question of whether buying rounds of liquor is the purchasing of liquor for another or only oneself is not material. What is a material question in this case is whether plaintiff actively participated in causing Campbell's inebriation. Malone v Lambrecht, 305 Mich. 58, 60; 8 N.W.2d 910 (1943); Todd v Biglow, 51 Mich. App. 346, 351; 214 N.W.2d 733 (1974). One who actively brings about the alleged intoxication may not recover for injuries sustained therefrom. Malone, supra.

In deciding whether there was a genuine issue of material fact regarding plaintiff's status as a non-innocent party under the dramshop act, the trial court was obligated to consider affidavits, depositions, and interrogatories, or, in short, the entire record. Rizzo v Kretschmer, 389 Mich. 363; 207 N.W.2d 316 (1973). Giving every reasonable doubt to the opposing party, to grant judgment the court must be satisfied that it is impossible for the claim asserted to be supported by evidence at trial. Partrich v Muscat, 84 Mich. App. 724; 270 N.W.2d 506 (1978).

In this case, plaintiff, defendant Campbell, and one other participant in the drinking at the Blue Boat Inn on the night of the accident all agreed in deposition testimony that their group drank beer and schnapps in "rounds". When a participant purchased the liquor, he did not purchase a quantity only for himself. Rather, he purchased a beer and a shot of schnapps for each drinker. In this fashion, both plaintiff and defendant Campbell consumed at least 8 to 10 beers and shots of schnapps.

We find that the purchasing of "rounds" in this manner does not show that plaintiff merely drank with Campbell. See Dahn v Sheets, 104 Mich. App. 584, 591; 305 N.W.2d 547 (1981), lv den 412 Mich. 928 (1982). Rather, we find that by drinking in this manner plaintiff actively participated in the intoxication of Campbell, whether or not he eventually assumed the cost of the liquor he consumed. Thus, the trial court correctly granted defendant Hughes a summary judgment because there is no genuine dispute that plaintiff is a noninnocent party.

Plaintiff also argues that the dramshop action should not have been dismissed because a person's active participation in bringing about the injury-producing intoxication should not bar recovery. Rather, plaintiff argues that the doctrine of comparative negligence should apply to such actions. See Placek v Sterling Heights, 405 Mich. 638; 275 N.W.2d 511 (1979). We follow the decision in Dahn v Sheets, supra, p 593, and reject this argument. The dramshop statute is a legislatively created exclusive remedy for injuries arising out of unlawful sales of intoxicating beverages by licensed retailers. A dramshop action is not a common-law negligence action. See Browder v International Fidelity Ins Co, 413 Mich. 603, 615-616; 321 N.W.2d 668 (1982); Lucido v Apollo Lanes Bar, Inc, 123 Mich. App. 267, 270-271; 333 N.W.2d 246 (1983). Because the doctrine of comparative negligence applies only to common-law tort actions sounding in negligence, it does not extend to a statutory dramshop action. Dahn, supra.

In his amended complaint, plaintiff added a count against defendant Hughes alleging a common-law cause of action for gross negligence in the sale of intoxicants to Campbell when Campbell was already visibly intoxicated and for ejecting Campbell from the bar knowing he had no other means of transportation than his automobile. Defendant Hughes filed a motion for summary judgment aruging that plaintiff failed to allege a legally cognizable claim in his amended complaint, GCR 1963, 117.2(1). In its February 22, 1982, opinion granting the motion, the trial court recognized that this Court in Grasser v Fleming, 74 Mich. App. 338; 253 N.W.2d 757 (1977), recognized a common-law action for gross negligence or wilful, wanton, or intentional misconduct where the complaint alleged that the licensed liquor establishment sold alcohol to a known compulsive alcoholic contrary to a promise made by the tavern owner to refrain from serving that person. However, the trial court found no such pleading in this case. Therefore, because a dramshop action is an exclusive remedy against a licensed tavern owner, plaintiff failed to state a cause of action.

A motion for summary judgment for failure to state a claim, GCR 1963, 117.2(1), tests the legal sufficiency of the pleadings alone. The factual allegations made in the complaint must be presumed true along with any inferences or conclusions which may be fairly drawn from them. Unless the claim is so unenforceable as a matter of law that no factual development could possibly justify recovery, the motion should not be granted. Romeo v Van Otterloo, 117 Mich. App. 333, 337; 323 N.W.2d 693 (1982).

The trial court properly granted the motion in this case. A dramshop action is plaintiff's exclusive remedy. Browder, supra. The Grasser exception does not apply in this case. Plaintiff did not allege that Campbell was a known alcoholic. Moreover, the common-law actions found in Romeo, supra, do not apply. Defendant in Romeo was was not a licensed seller of alcoholic beverages.

Affirmed.

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BARRETT v. CAMPBELL
(Nov 23, 1983)