How Not To Have Your Winery or Hospitality Business Lawyer-Up!

Recently I took an unforeseen hiatus from posting to this blog to tend to the needs of my oldest child02dramshop who was recently injured this January in an automobile accident at the hands of a drunk driver. Like most of the mothers of MADD, I too experienced the anguish that comes with that dreadful night in the emergency room, waiting 40 minutes for a simple word from physicians in what felt like a lifetime of silence as to whether my child was to live or die, while the drunk driver walked away with little more than a scratch.

It’s horrible to be in a position wherein despite the fact my daughter suffered a brain hemorrhage, short term memory loss, a fractured skull, broken nose, broken ribs, loss of teeth, and deep facial lacerations, I was relieved to hear the words “she’s on a ventilator, but is expected live”. Two surgeries later, our family is blessed to have her home and recuperating. While her total healing process is expected to take 12-18 months, there are huge economic and emotional losses to recover from as well.

After having lived through this dreadful experience, spending many nights at her hospital bedside and wondering what words of comfort to offer her children who looked to me for words of hope, I am compelled now to post for the benefit of my winery, restaurant, and hospitality business readers how you may protect your business and life’s work from the risks and hazards that come from dealing with visibly intoxicated persons who senselessly create liability for your business. If you do not want to be in a position of having to “lawyer up”, let’s now visit what is important for you to know.

The Dram Shop Law in Pennsylvania makes it unlawful to serve liquor, malt, or brewed beverages to “any person visibly intoxicated”. Dram Shop is third party liability law which makes it possible for 2nd and 3rd parties to sue any person for a death, injury, or property damage. Establishments licensed to sell and serve alcohol are commonly referred to as “dram shops”. These establishments or “dram shops” are liable to third parties for damages inflicted by customers of the establishment, if the customer was sold, furnished or given liquor by the establishment when the customer was visibly intoxicated when served. Selling alcohol to a minor, selling to a visibly intoxicated person, selling alcohol after hours, or selling without a liquor license is unlawful in Pennsylvania. This Dram Shop statute is designed to protect the public at large as well as the person who consumes the alcohol.

If you’re a winery owner on a wine trail for example, and a VIP or “visibly intoxicated person” comes to your winery as well as several other wineries on the trail, and is involved in an automobile accident resulting in an injury to a third party, you and your business are now in the “hot seat”. The same is true if you are a restaurant or bar owner serving bar-hopping patrons who later leave in a drunken state, and kill themselves and or others. Because your establishment can be held liable for injuries it is in your best interest to be diligent in ensuring that intoxicated persons are not served more alcohol. In order for liability to attach, you must have actual knowledge or notice of a customer’s condition before liability is imposed. Thus its important to have your servers trained in alcohol awareness and to teach your staff the obvious signs of intoxication such as staggering, slurring words, loud speech, drinking too fast, etc. and even the more subtle signs that the untrained eye might not see. This kind of evidence helps to dispel the implication that a patron was served while visibly intoxicated.

The Pennsylvania Liquor Control Board created the Responsible Alcohol Management Program (RAMP) to help liquor licensees and their employees to serve alcohol responsibly. Ramp offers advice to restaurants, winery owners, hotels, clubs, distributors and special permit occasion holders to learn to avoid unnecessary liability and to detect signs of impairment and intoxication.

So as to avoid having your winery or hospitality business “lawyer up” in the face of such dreadful outcomes at the hands of intoxicated persons, protect your business and your life’s work by being vigilant in the sale of alcohol and the persons you hold accountable for seeing that your patrons drinking responsibly.

U.S. Wineries Continue to Grow During The Last Year

According to Wine Business Monthly, the number of United States Wineries increased in the last year by 122 Wineries. Pennsylvania ranks among those states with more than 100 wineries. Read here for more information on this growth trend: Number of U.S. Wineries Continues to Grow, Reaches 6,223

Bringing In The New Year With The Lehigh Valley Wine Trail Association

This week I had the pleasure of being invited by Dominic Strohlein, owner of Big Creek Winery to be the guest speaker to the membership of Pennsylvania’s Lehigh Valley Wine lehigh valley wine trailTrail Association. It was a wonderful time starting the new year in their company as they hosted their first of many membership meetings held annually throughout the year.

We used our time together having a very healthy exchange discussing Pennsylvania’s Dram Shop Law. We discussed issues of premise liability and its impact on winery and vineyard owners. In Pennsylvania, the laws that govern servers of alcohol, if violated can result in very costly lawsuits. Thus, the manner in which each winery owner can best protect themselves in various environments including the tasting room, wine festivals, wine events, tour group events and commercial carriers can be very complex waters to navigate. Too, we considered how managing potential risks and hazards can be minimized with proper training and knowledge in order to avoid unlawful acts of alcohol service to “minors” or “any person visibly intoxicated”.

The Lehigh Valley Wine Trail Association is home to nine family owned vineyards and wineries located in eastern Pennsylvania. Designated an American Viticultural Area (AVA) in 2008, Lehigh Valley is Pennsylvania’s fasting growing wine region in the state.

The Lehigh Valley Winemakers include:

Amore Vineyards & Winery
Franklin Hills Vineyard
Sorrenti’s Cherry Valley Vineyards
Big Creek Vineyard and Winery
Galen Glen Vineyard and Winery
Blue Mountain Vineyards & Cellars, Ltd.
Pinnacle Ridge
Clover Hills Vineyards & Winery
Vynecrest Vineyards & Winery

I found the Lehigh Valley Wine Trail Association membership to be very proactive in their efforts to keep abreast of new trends and changes in the law so as to conduct their winery and vineyard operations as responsible licensees in their community.

Pennsylvania is home to 11 wine trails throughout the state. This year, as your wine trail association gathers to meet and exchange ideas, you too may want to start your year anew considering how best to protect your winery operations as responsible licensees in your community.

As you usher in your new year and embark upon your Pennsylvania wine country travels, perhaps you’ll head out to eastern Pennsylvania and check out the wineries on the Lehigh Valley Wine Trail. I’m certain you’ll have a wonderful wine experience.

Thank you again Lehigh Valley Wine Trail Association for the opportunity to meet and speak with you.

Happy New Year to you all!

Bring Your New Year In With The Best Bottles Of Bubbly!

As a graduate of Windows of the World Wine School, how excited I was to see that my friend and teacher Kevin Zraly was on the “Early Show” this morning offering tips on champagne. I couldn’t let 2009 go out without sharing this episode with all my friends, legal eagles, followers and fellow bloggers. [...]

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Are You Planning To Help Yourself To Some Wine With Your Meal?

If you’re planning to enjoy wine with your meals, Pennsylvania will soon be offering you a new way to help yourself.  Pennsylvania is one of 19 states in which the distribution of alcohol is controlled by state government.   As mentioned in my earlier post So Who’s In Control of Pennsylvania’s Alcohol Beverage Industry, alcohol [...]

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Is There A Pennsylvania “East Coast Red” In Your Future This Holiday?

This fall while on the Bucks County Wine Trail one of my fond memories of the Buckingham Valley Vineyards was the opportunity I had to experience a tasting of an oak aged dry Chambourcin wine.   This delightful grape is readily becoming known as “Pennsylvania’s Zinfandel”.   This versatile hybrid grape is known to [...]

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Can A Rose By Any Other Name Still Be A Rose?

You’ve likely heard the saying “a rose by any other name is still a rose”. Well in a way that can be true in the business world as well. Especially if you are considering giving your business a “fictitious” name.
Before establishing your winery, wine or hospitality based business, you will want to consider [...]

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A Pennsylvania Winery Wins Medals At San Diego’s International Sommelier Challenge

The first Sommelier Challenge International Wine Competition was held recently in San Diego, California. Eleven sommeliers from the nation’s finest restaurants gathered to evaluate wines from nine countries. Pennsylvania’s own Crossing Vineyards and Winery, a Bucks County winery in Washington Crossing, Pennsylvania earned the Platinum, Gold and Silver medals.
Congratulations to Pennsylvania’s own Crossing [...]

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What Wine Or Hospitality Business Are You Creating? Forming A Limited Liability Corporation

Do you dream of opening your own winery, vineyard, restaurant, bed and breakfast, catering, wine-based or hospitality business? If so, it is important for you to choose the correct legal structure that’s right for your business.
In this series on forming your business entity, we previously considered the “Sole Proprietorship” , “Partnership” and “Corporation” as [...]

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Pennsylvania’s Wine and Grape Industry Strengthens The State’s Economy

Pennsylvania’s wine and grape industry continues to be a major contributor to the economic strength of the State. The results of the latest update of the MKF Research Study, an independent study commissioned by the Pennsylvania Winery Association indicates increased growth in the industry during the two year period between 2005-2007. Pennsylvania’s [...]

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