You are Liable When Serving Liquor

A bar in New Mexico is actually a rare sight. It’s not that there aren't enough to go around if you count the restaurants with a fully stocked bar inside. It’s just that compared to a neighboring state like Texas, New Mexico bars have become few and far in-between. Why?

Limited Licenses

To keep it simple, it comes down to the letter of the law in New Mexico. There is actually a limit on liquor licenses. This means that people who are looking to open a legitimate business that sells alcohol have to buy the license off of someone who already has one. As you can imagine, this can really elevate the cost of a liquor license, and for a small business or starting businessman that can be nearly impossible!

And, that is not the only problem a bar owner has to deal with as third party liability laws leave the business owners completely liable for serving an intoxicated person. In fact, bar owners can actually have their liquor license revoked and destroyed over this offense. Strange right? Not serving an intoxicated person in a bar? Everyone who is drinking in a bar is intoxicated to a certain degree no matter their tolerance. This begs the question of how does one know the cut off?

Now, if you noticed I said that a bar owner could have their liquor license revoked and destroyed, so not only is there a limit on liquor licenses in the state, but they also destroy the ones that get taken away, thus making it even harder to attain them because it doesn't seem like they are much for making new ones.

How Much for a License???

So, it works like this: liquor licenses are expensive, and by that I mean really expensive. In most other states, they run $1,500-$2,500, but in New Mexico and under its policies, they cost about $500,000! That means inflated bar prices, which can lead to fewer customers and then results in bar closures or relocation out of state.

Some Suggestions     

There may not currently be a way around these unfortunate circumstances, and though we can hope that someday these policies will be revised in your favor, it doesn't change the fact that you are liable for what goes on in and around your bar. Somebody gets in a fight, breaks a chair or two? Maybe a pool cue? Broken bottles are always fun too, but when the dust settles, it's on you.

People get hurt and people sue -- it's the way of the world. All you can do is to make sure you have proper liability insurance today because it may be too late tomorrow. Check out Linton and Associates today so we can have your back tomorrow.