Rust v. Reyer, 91 N.Y.2d 355 (1998)
Under New York General Obligations Law § 11-100, a person may be liable for “furnishing” alcohol to a minor, even if they did not directly serve the alcohol, if their actions were part of a deliberate plan to make alcohol available to underage individuals.
Summary
Carol Rust, a minor, sued Heidi Reyer for injuries sustained after being punched by an intoxicated minor, Stephen Tarantino, at a party hosted by Reyer. Reyer allowed a fraternity to bring kegs of beer to her party in exchange for a portion of the proceeds from cup sales, knowing that many attendees were underage. The New York Court of Appeals held that Reyer’s actions, if proven at trial, could constitute “furnishing” alcohol to minors under General Obligations Law § 11-100, even though she did not personally serve the alcohol. The Court emphasized that the statute’s purpose is to deter underage drinking and that a narrow interpretation would undermine this goal.
Facts
Heidi Reyer, 17, planned a party at her house while her parents were away. Representatives from a high school fraternity, including Stephen Tarantino, approached Reyer about bringing beer to the party and charging attendees for unlimited access. Reyer agreed in exchange for a share of the proceeds. Fraternity members brought kegs of beer, stored them at Reyer’s house, and sold cups to partygoers. Reyer attempted to get free beer for her friends and observed underage guests consuming alcohol. After the party was dispersed by police, Tarantino, intoxicated from the beer consumed at the party, punched Carol Rust, causing injury.
Procedural History
Rust sued Reyer, her parents, and Tarantino, alleging negligence and violations of General Obligations Law §§ 11-100 and 11-101. Tarantino settled. The Supreme Court dismissed the claim against Reyer, holding that she merely “facilitated” the furnishing of alcohol. The Appellate Division affirmed. The New York Court of Appeals reversed, finding that Reyer’s actions could constitute “furnishing” alcohol under the statute.
Issue(s)
Whether, under General Obligations Law § 11-100, a person who allows a third party to furnish alcohol to minors at a party on their premises, in exchange for a portion of the proceeds, can be held liable as someone who unlawfully furnishes alcohol to minors, even if they did not directly serve the alcohol themselves.
Holding
Yes, because if proven at trial, Reyer’s actions could be considered “furnishing” alcohol under General Obligations Law § 11-100, as she played an integral role in making alcohol available to underage individuals at the party.
Court’s Reasoning
The Court reasoned that “furnishing” should be understood in its ordinary sense, meaning “to provide in any way,” “to supply,” or “to give.” The Court emphasized that Reyer’s actions, including giving permission for alcohol at her party, providing storage for the kegs, negotiating a share of the proceeds, and attempting to arrange free beer for her friends, demonstrated her complicity in the scheme to furnish alcohol to underage individuals. The Court stated, “[Reyer] chose to participate in a scheme to furnish alcohol to underage individuals in return for a payment of money.” The Court acknowledged that statutes in derogation of the common law must be strictly construed, but also emphasized that the primary directive is to give effect to the Legislature’s intention. The Court noted that the purpose of General Obligations Law § 11-100 is to deter underage drinking, as stated in the legislative history: “[t]his legislation seeks to protect minors from those persons uncaring enough to provide intoxicating beverages to minors in an indiscriminate manner and by so doing, to endanger the life and safety of the minor as well as of the general public.” The court distinguished Reyer’s actions from those of an unknowing bystander, an innocent dupe, or a passive participant. The court stated that reading the statute to foreclose responsibility in these circumstances would allow unintended circumvention of the legislation and negate its deterrent purpose.