Last Call

You're sound asleep, but being wrested from dreamland by the piercing cry of the alarm clock. You roll over, bring your fist down upon the snooze button, but the clamor won't stop. Then you remember ? your alarm clock doesn't ring. Must be the phone. It's pitch black in your room and you feel as if you've been in bed for only a few hours.


You clear your throat, reach for the phone, and get ready to bark obscenities at the imbecile who dialed the wrong number. But it's your boss.


She says there was an accident. A man is dead. Hit by a drunk driver. Tragic, but what's this got to do with you?
The driver is your co-worker. He was at last night's cocktail reception. The one you planned. Your boss has already talked to her lawyer, who says the company should brace itself for a lawsuit. And so should you.


This is your worst nightmare. And you're wide awake.


Party's over


Think this can't happen to you? Part-time planners Nancy Cowan and Ed Stoner didn't think so either, until they were sued for $25 million in connection with a holiday party they helped to organize. A judge has since dismissed the case against them, but that ruling could be appealed. Here's how their nightmare began:


It was December 18, 1999, and holiday revelers from International Telecommunications Satellite Organization (Intelsat), a communications provider based in Washington D.C., were making merry at an in-town hotel. They enjoyed the usual cocktails, food, and music, and when the party ended after five hours, many moved to a suite for an after-party. Among them was Ricardo Aspillaga, a computer technician for a firm hired by Intelsat. After about an hour or so, the 32-year-old Virginian took leave of the festivities and got into his car. Before reaching his final destination, somebody would die.


Police reports say a drunken Aspillaga sped through a red light and plowed into Seth Wadley, who was lawfully crossing the street. The 24-year old George Washington University law student died hours later. Subsequent tests revealed Aspillaga's blood alcohol level was nearly three times the legal limit.


Aspillaga pled guilty to manslaughter and is doing two to six years behind bars, but to the grieving parents of Seth Wadley, that doesn't even hint at justice. To avenge their son's violent and untimely passing, they did what's becoming commonplace in cases like this?they sued Aspillaga to the tune of $25 million. And then they went a step further.


Donna and Alfred Wadley slapped Intelsat and party planners Cowan and Stoner with a $25 million wrongful death suit. In it, they accuse all three of failing to properly monitor the level of drinking among attendees and doing nothing to stop guests from drinking to excess. Furthermore, the lawsuit alleges the company and the planners did not take reasonable care to prevent intoxicated guests from driving, nor did they staff the after-party with bartenders trained in proper serving procedures.

"Seth Wadley died as a result of the company's and its planners' reckless acts and failure to exercise reasonable care," says Pat Regan with the Washington D.C. law firm of Regan, Halperin, & Long. Intelsat spokesperson Tony Trujillo insists the company took "standard precautions," which included paying for taxis for those who appeared unable to drive and tapping managers to supervise attendees? conduct.

"Cowan and Stoner are not to blame for Aspillaga's irresponsible behavior, or for the unfortunate death of Mr. Wadley," contends their attorney, David Rosenberg with the firm Ford & Harrison, based in D.C.

Now, because Washington D.C. does not have business- or social-host liability laws on the books?which hold the seller of liquor or the host of an event liable for the actions of intoxicated guests ? the judge in the case dismissed the suit against the planners. (Cowan and Stoner worked in Intelsat's facilities department, but played a significant role in planning both the holiday party and the after-party.) But they're not off the hook yet; Regan is considering mounting an appeal. Meanwhile, the case against Intelsat is still moving forward, as Regan attempts to prove Aspillaga, a hired contractor, was actually an employee of the company at the time of the incident, making Intelsat responsible for his actions.

So what should these part-time planners have done differently, both to protect themselves and their employer?



If they could turn back time


While a planner can't entirely control the acts of his attendees, nor make himself immune to lawsuits, he can take significant precautions to lessen his culpability and liability. Therefore, in the event that something bad does happen and a planner or his client is sued, he can hope to lessen the blow by proving he went above and beyond to ensure that nobody would get hurt.


"The first mistake made by the company and the planners," points out attorney John Foster, "was allowing the bar to remain open for the duration of the event." Foster, whose Atlanta firm specializes in the legal aspects of meetings and conventions, says it's crucial that a planner be able to show in court that "steps were taken to limit the intake of alcohol."


Two ways to do that, offers Cris Canning, CMP, who leads meeting planning workshops during downtimes as director of sales for Charter Connection in San Diego, are to host an open bar for only a short period of time (an hour or less), or provide attendees with free tickets for no more than two drinks. Independent planner Joan Eisenstodt, a teacher of classes in risk management, suggests a third alternative: Forgo the hard stuff in favor of beer and wine only.
For those who think such tactics will never fly with their groups, take a tip from Linda Patterson, meeting manager for Coors Brewing Company in Golden, Colorado: "We serve nothing but beer -- Coors, naturally -- at company functions." Patterson also says she plans for just one or two drinks per person and "when the beer?s gone, it's gone."


As a matter of fact, a recent survey by SM and Equation Research finds 62 percent of meeting planners attempt to cut down on consumption by limiting the amount of time libations are available. Twenty-six percent of the 300 respondents serve just beer and wine, while 25 percent use drink tickets.


A quick cocktail hour, drink tickets, even a cash-only bar, all serve to set the tone that over-imbibing is not encouraged by the company hosting the affair?something that could be enough to sway a jury in a wrongful death suit. "Mass e-mails clearly stating the company's policy on alcohol and drugs" in advance of the event could work the same way, offers Debi Debiak, a labor and employment attorney based in Roseland, New Jersey. Plus, says Eisenstodt, "A scattering of decorative signs that read, 'Drink responsibly' is another way" to display concerted efforts to limit both consumption and risk.


It's also a good idea, notes Canning, to close the bar well before the event ends, allowing ample time for folks to "dry out." And, plenty of munchies throughout is a must?especially those high in alcohol-absorbing protein?though the Hospitality Sales & Marketing Association International (HSMAI) recommends planners steer clear of salty snacks, which make people want to drink more.


Now, whether Cowan and Stoner let it be known that Intelsat would provide hotel rooms and cab rides for those too drunk to drive differs depending on whom is asked, but the bottom line is planners would be wise to do so. Millie Webb, national president of Mothers Against Drunk Driving (MADD), suggests planners arm themselves with the phone numbers of local MADD chapters, which offer free rides to intoxicated individuals.



Help behind the bar


In retrospect, almost anyone can see that a long-running open bar was a big mistake. However, the planners' biggest error, according to Philadelphia-based hospitality attorney Joshua Grimes, was hosting an after-party without bartenders. "Allowing guests to help themselves to endless supplies of booze, as they can in most hospitality suites, is a major faux pas." Any bartender "worth his salt," adds Grimes, "knows it is his responsibility to stop serving guests who appear intoxicated."


Bartenders who've gone through alcohol awareness training programs, like the one offered by Joe Bruno, head instructor at the American Bartending School in New York City, have been taught how to spot?with one eye closed?someone who's had a few too many. There are a number of ways to do this, "from counting drinks to engaging guests in conversations and monitoring behavioral changes," explains Debbie Dixon, at the Texas Alcoholic Beverage Commission. Adds Bruno, "Specially trained bartenders are also skilled at tactfully, yet firmly, cutting people off," which can be a comfort to planners who hate playing the heavy.


Yet not every state requires bartenders to take part in an alcohol awareness program. On the upside, some hotels do. "Even if a bartender has been trained elsewhere, we'll train him again, just to be doubly sure," offers Devon Walter, director of catering and convention services at the Sheraton El Conquistador in Tucson, where Arizona law does not mandate server training. Planners would be smart, advises Grimes, to find out if a venue they're considering is staffed with trained bartenders. "If the answer is yes, include it in the contract. If it's no, walk the other way."


It also wouldn't hurt to ask if the folks pouring the wine at the dinner tables have sat through a server training program as well, suggests Cindy Bishop, who plans meetings for Novogradac & Company, a San Francisco accounting firm. And if the answer is yes, confirm it in writing.
While some experts advocate the under-staffing of bars so that guests are forced to hold their horses between drinks, D.C.-based attorney James Goldberg disagrees. "In order to be sure bartenders are monitoring the level of consumption, there must be enough of them" to go around. "It's also not a bad idea," adds Goldberg, who represents meeting planners, "to instruct bartenders to under-pour?and take their sweet time doing it." Again, this should be noted in the contract to be used as ammo, if necessary, in front of a jury.



The insurance reassurance


Call it a sign of the times, but even the most cautious planner?one who follows the preceding tips to the letter?can still wake up in the middle of a legal bad dream. Therefore, a planner's "front and last line of defense is insurance," says Jonathan Howe, general counsel for Meeting Professionals International (MPI). Before you plan your next meeting, "Check with the risk management people at your organization to see if the company has liability insurance." Then, make sure you're included in the policy.


Is it safe to assume you are, and that your employer has done the responsible thing? No way, says CMP Sheryl Brannon. "I was shocked to find that I and the meetings I planned were not covered at my company." Brannon, conferences director for Caribbean Latin American Action, a nonprofit economic development outfit in Washington D.C., says, "It was something that simply hadn't occurred to them because I was their first meeting planner."


As long as you are named in your company's policy, most hospitality lawyers feel there's no need to purchase additional personal insurance. However, for independent planners who are heads of their own businesses, it's a must. Randy Thurman at the Risk Insurance Management Society based in New York City, says individuals can typically buy themselves "a million dollars worth of general liability insurance, including host liquor liability coverage, for about a thousand bucks a year."
While insurance will keep you and your company out of the poorhouse, you'll want to do all you can as a planner to keep your firm (and yourself) far from the courtroom?and out of the headlines. So when it comes time to seal the deal with a venue, "Ask to see a copy of their liability insurance policy," says Howe. A bold question, he admits, but one you can't risk not raising.


Once you've laid eyes on the actual policy, transfer all responsibility for liquor service to the venue. Not as tricky as it sounds; do it simply by adding a line to the contract stating that the venue will "indemnify, or protect, you and the meeting sponsor for any claim related to alcohol," instructs Goldberg. (Be aware: This won't stand up in court if the sponsor brings the booze onto the premises.)


Thurman adds, planners can also request that they and the meeting sponsor be added to the venue's liability insurance policy. "Hotels are usually happy to comply?most carry a very large deductible so the cost of coverage is next to nothing."



Selling it to the CEO


Although some planners will be commended by their higher-ups for taking the liability bull by the horns, others?those who work for bosses, organization chairs, boards of directors, or clients with the old "what could go wrong?" attitude or "bottoms up" philosophy?may be labeled a party pooper, a buzz kill, or worse, the ex-planner. So what's a cautious, conscientious planner to do?


"Invite a lawyer to your offices to give a talk about liability, or have your group?s general counsel do it," suggests Jennifer Lindsey, conference manager at PennWell Corporation, a Tulsa, Oklahoma-based media company. "This takes the heat off of you," and may, in the end, spare you and your company from the hell that Intelsat and its pair of planners are enduring. Photocopying and distributing a few frightening news articles on the subject, she adds, can further support your case.


Sara Hayes, marketing manager for the Airborne Law Enforcement Association, also in Tulsa, recommends planners speak to the firm's pocketbook. "Remind your superiors about how much money they'll save by hosting a brief cocktail reception, or by serving wine and beer only."
And never forget the old adage that in this climate bears repeating: "An ounce of prevention is worth a pound of cure."