Booze And Boating Don’t Mix (But They Do Lead To An Interesting Discussion Of Negligent Entrustment)

by: Peter J. Gallagher (@pjsgallagher) (LinkedIn)

Boat and beer (pd)Some sets of facts just seem tailor-made for a potential lawsuit. Climbing up a ladder with a chainsaw to cut your neighbor’s tree limbs that are hanging over your lawn comes to mind.  Also on that list, a day out on a boat with your friends from the local bar, more than a few beers, and a jet-ski. Those were the basic facts in Votor-Jones v. Kelly. In that case, what started out as a fun day out at sea for a group of friends became a very bad day for plaintiff and an opportunity for the court to opine on the rarely-invoked tort of negligent entrustment.

In Kelly, plaintiff was “one of seven employees and patrons of Kelly’s Tavern invited on a social trip organized by the tavern’s owner and plaintiff’s boyfriend.” While plaintiff described the event as a “bar outing,” it was not the more formal, “large scale ” “customer appreciation days” that the bar had organized in the past. Instead, it was “small and planned the night prior at the suggestion of the boat’s operator.” Each attendee was required to bring their own food and alcohol. To that end, plaintiff and her boyfriend testified that, on the morning of the cruise, they went to the bar and fulled their cooler with approximately 24 beers and a bottle of wine. The group had a total of four or five coolers like this on the boat.

The attendees had a “tacit agreement” that they would not drink until 4pm, but some apparently ignored this agreement. One defendant acknowledged that she was drinking prior to boarding the boat and plaintiff testified that she saw this woman have “at least three beers on the dock” before the cruise began. Once the cruise started, this same woman was seen with a beer in her hand and was described by plaintiff as being “loud,” “boisterous,” and “excited.” Plaintiff conceded that she did not know if the woman was drunk, but did see her “wobbling on the boat, as was everyone else.”

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Litigation Privilege Protects Client’s Statement That His Former Lawyer Was a Liar, Thief, and “No Good Drunk”

 by:  Peter J. Gallagher (@pjsgallagher) (LinkedIn)

Privilege (pd)Anyone who has practiced law for any period of time likely has a story about a misdirected email. You know, the one you meant to send to a client or a colleague, but it went to your adversary or your supervising partner instead. These situations often just result in mild to moderate awkwardness around the office, but they sometimes create bigger problems. MacNaughton v. Harmelech, a recent decision from the Appellate Division, involved the latter. But it also involved the litigation privilege, something I wrote about just a few weeks back. (What Do eBay, The "40 Year Old Virgin," And The Litigation Privilege Have In Common?). And, fortunately for defendant, the statements in his misdirected email were protected by that privilege.

In MacNaughton, plaintiff, a New Jersey lawyer, represented defendant in a lawsuit involving defendant's company. Defendant disputed plaintiff's bill and plaintiff eventually sued defendant over the bill. At some point during the litigation, the trial court asked the parties whether they were interested in mediation. Around the same time, however, plaintiff was "in contact with another of defendant's creditors about banding together to force defendant into involuntary bankruptcy." As you might expect, when defendant learned about plaintiff's efforts, it colored his decision about whether to agree to mediation. In fact, defendant sent the following email, reprinted exactly as it appeared in the Appellate Division's decision, to his lawyers on the subject:

Please I Am asking you to file a paper in the state court there WILL NOT BE AGREE NOT TO BE A MEDIATION MACNAUGHTON CALL TODAY AND ASK HIM TO TRY TO POT ME IN IN VALENTRY BANKRUPTCY AS YOU SEE HE IS A. LIAR THIEF AND NO GOOD DRUNK

NO TO BE TRUSTED THANKS

Unfortunately, defendant also copied plaintiff on this email. Upon receiving it, plaintiff filed a one-count complaint for defamation. The trial court held a hearing on whether the statements were protected under the litigation privilege. After taking testimony from defendant and his current counsel, the court applied the four-factor test from Hawkins v. Harris, and held that they were. As a result, plaintiff's claim was dismissed. Plaintiff appealed.  

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Take It Outside: Club Not Responsible For Injuries When Fight Spilled Into Parking Lot

by:  Peter J. Gallagher (@pjsgallagher) (LinkedIn)

Roadhouse (pd)You don't need to be James Dalton to know that bar fights are scary. (If you don't know who James Dalton is, however, you do need to go watch Road House.) Bar fights can also create legal problems for bar owners. For example, do bar owners have a duty to keep their patrons safe from harm caused by fights? In Lloyd v. Underpass Enterprises, Inc. t/a The Harem, the Appellate Division dealt with this issue in the context of a somewhat unusual situation — a fight between two people that started in the club but ended up outside the club, and injured an individual who was not one of the combatants.

In Lloyd, plaintiff was playing "poker tournament style" in a hotel room with some co-workers, including Cecil George. After the game, they decided to visit a gentleman's club. George invited a friend, who had not been at the poker game, to join them at the club. About an hour after arriving, plaintiff saw George fighting with someone who "may have been" the friend George invited to the club. The club's bouncers broke up the fight, "escorted George and the other combatant outside to the parking lot," and then waited near the club's entrance. Plaintiff followed them out. The Appellate Division described what happened next:

[Plaintiff] was standing near George when he saw the other combatant rushing quickly, looking "menacing and  coming  at  [them] with  intent." [Plaintiff] stepped in between George and the person  rushing at them to "put  [him]self  as  a  barrier  between  [the other combatant] and [George]." [Plaintiff] stated  "[e]verything  happened  quickly." He awoke four days later in the hospital, having sustained a serious head injury.

Plaintiff sued the club. The club moved for summary judgment, and the trial court granted its motion. Plaintiff appealed, but the Appellate Division affirmed the trial court's decision.

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Not A Trespasser, And Not Drunk

In Olsen v. Sandax, Inc., No. A-2553-09 (App. Div. Mar. 15, 2011), the jury returned a verdict of $1,281,755.50 against the defendant because it determined that it failed to properly maintain its parking lot, which led to an accident in which the plaintiff was injured.  On appeal, the defendant asserted that the verdict should be reversed because the plaintiff was a trespasser and because the trial court erred in excluding evidence that the plaintiff was intoxicated.  The Appellate Division rejected both arguments and affirmed because the plaintiff was an invitee and a blood test taken of the plaintiff was negative for alcohol.

via porzioappeallaw.pbnlaw.com