about adding some fun elements that engage neighbors and build commu- nity spirit? Aſter the business of the


association is done, take an hour to recognize volunteers, highlight com- munity accomplishments, eat great food donated by local restaurants and grocery stores, and raffle off items donated by your community service providers. It’ll take a little


more time and organization, but the benefits will be well worth it.


Now about alcohol . . .


Te bottom line is that when associations plan an event with alcohol being served, they should talk to their manager, attorney and insurance broker and follow their advice.


The attorney should review the governing documents to make sure such events are permissible. After this review the base line question becomes, can an association serve alcohol at an HOA event?


The short answer is yes, so long as the association is serv- ing the alcohol rather than selling it, the potential liability should be minimal. The delineation is simply defined as that between “social” and a “commercial” or “for profit” host.


Under California Civil Code section 1714(c) “No social host who furnishes alcoholic beverages to any person may be held legally accountable for damages suffered by that per- son, or for injury to the person or property of, or death of, any third person, resulting from the consumption of those beverages.”


There are practical ways an association can avoid liability related to serving alcohol.


For instance, the type of alcohol being served matters. Beer and wine certainly produce fewer undesirable effects than serving hard alcohol.


Having a system in place to verify peoples’ age is important. Under the Business and Profession’s Code section 25602(a), “Every person who sells, furnishes, gives, or causes to be sold, furnished, or given away, any alcoholic beverage to any ha- bitual or common drunkard or to any obviously intoxicated person is guilty of a misdemeanor.”


It goes without saying, that at these events no one should serve people who are already intoxicated. This can be ac- complished either by monitoring people or by creating a two-drink maximum.


Don’t forget to check with local authorities to see if you’ll need to acquire a liquor license for your event.


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Ensuring and Insuring you’ve covered your bases…


Finally, it is imperative that the association contact their insur- ance broker to make sure their policy covers the association for any event, even those where alcohol is not served. If the association’s li- ability insurance does not cover events, most insurance carriers will provide event insurance as needed, and most venues will require it.


In the end, planning a community party can be easy and inexpen- sive, but before you start planning your epic community gather- ing make sure you’ve got your bases covered to ensure the associa- tion has proper insurance and protections in place.


P arty on!


Dylan Grimes is an attorney with Angius & Terry LLP. He practices law in Northern and Southern California and is also admitted in Hawaii. He was named a Super Lawyer Rising Star in both 2017 and 2018.


JULIA SOUZA has 31 years of experience in the property management industry. Julia is experienced in conducting Board educational orientations, train- ings, and seminars to assist Boards in achieving goals and incorporating practices. She has received vari- ous honors and awards for her work in the industry,


and certifications in AMS®, CMCA®, CACM-LS®. She is General Manager for the Serrano El Dorado Owners’ Association for FirstService Residential in the Sacramento Region.


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