Civil Liability: A Hotelier's Duty Of Care: Am I My Brother's (Inn) Keeper?

A recent decision of the High Court of Australia, CAL No 14 Pty Ltd (Tandara Motor Inn) v Motor Accidents Insurance Board (Scott) (2009) HCA 47, has attracted national attention in relation to the duty of a hotelier to monitor and minimise the service of alcohol to customers.

THE FACTS

Mr Scott died on the evening of 24 January 2002 whilst riding his wife's motorcycle home after consuming approximately 6-7 cans of bourbon and cola at a local hotel. It was accepted as part of the factual background that intoxication had played a part in Mr Scott's motorbike collision which led to his death.

The potential for liability on the part of the hotelier arose because of an arrangement between the hotelier and Mr Scott entered into earlier that evening. The arrangement was initiated when a friend of Mr Scott entered the hotel, advising that he believed a police breath analysis unit was going to be set up later that evening on a route that Mr Scott may have taken to ride home.

An arrangement was made with the hotelier whereby the motorbike would be stored in a shed and when Mr Scott was ready to leave the hotel, his wife would be contacted, who would come to collect him.

At approximately 7.45 pm, Mr Scott's friend left the hotel in the...