Q & A
Q: Do you know of any law cases that have held condominium boards or associations liable for the consequences of accidents that have occurred by persons having been served alcohol at condominium parties?
A: Colorado does not have any case law that directly addresses the liability of a condominium association when a third party suffers injuries from the actions of an intoxicated individual served alcoholic beverages by the association. However, section 12-47-801 of the Colorado Revised Statues apportions liability in situations in which intoxicated individuals cause injury to another’s person or property after being served alcoholic beverages.
Generally, the statute imposes liability on “social hosts” (meaning that no fee is charged for the alcoholic beverages) for damages resulting from the intoxications of a person under the age of 21 when the social host or its agent willfully and knowingly served alcohol to the underage person. If alcoholic beverages are sold, different “licensee” rules apply. A licensee must be licensed by the state to sell alcohol, and will be liable under the statute for damages resulting from the actions of an intoxicated individual if the licensee willfully or knowingly served or sold alcohol to a person under the age of 21 or to a visibly intoxicated person.
Additionally, liquor liability insurance is often available to safeguard an association from liability if it chooses to serve alcoholic beverages at an association sponsored event.
Q: May a declarant-controlled board of directors unilaterally amend the bylaws to change the quorum requirement for members?
A: The Colorado Revised Nonprofit Corporation Act (“Nonprofit Act”) prohibits the board of directors from unilaterally amending the bylaws to provide a lesser or greater quorum requirement for members than is provided. The Act does not limit the foregoing prohibition to boards of directors who are no longer under declarant control. Therefore, declarant-controlled boards of directors must still seek membership approval in order to amend the bylaws to change the quorum requirement of members.
* Please email or fax your questions with your name and contact information to: QAcolumnist@ortenhindman.com or 303.432.0999. Due to the volume of questions received, we cannot guarantee an answer.
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