 Wisconsin 
  Lawyer
Wisconsin 
  Lawyer
  Vol. 81, No. 6, June 
2008
Social Host Liability for Underage Drinking
Social hosts face liability if they 
knowingly provide alcohol to underage guests 
  who then injure third parties. The Wisconsin Supreme Court recently 
declined to 
  extend liability to persons who, despite being aware of an underage 
drinking party on 
  their property, did not actually provide the alcohol that led to a 
tragic car 
  accident. The author explores the current state of social host 
liability for underage 
  drinking in Wisconsin after the court's Nichols decision. 
 
by Mark R. Hinkston
 ew people dispute that underage 
drinking is a serious problem with 
  potentially drastic consequences. People under the legal drinking age 
of 21 have the 
  nation's highest rate of alcohol 
  dependence.1 Thousands of people in the 
United States 
  are killed or injured each year as a result of alcohol-related crashes 
involving 
  teenage drivers.2 Financial ramifications 
are in the billions of 
  dollars.3 Emotional damage is 
immeasurable. Wisconsin has been especially hard-hit by the teen 
drinking 
  epidemic; the state has the highest national rate of underage 
  drinking.4
ew people dispute that underage 
drinking is a serious problem with 
  potentially drastic consequences. People under the legal drinking age 
of 21 have the 
  nation's highest rate of alcohol 
  dependence.1 Thousands of people in the 
United States 
  are killed or injured each year as a result of alcohol-related crashes 
involving 
  teenage drivers.2 Financial ramifications 
are in the billions of 
  dollars.3 Emotional damage is 
immeasurable. Wisconsin has been especially hard-hit by the teen 
drinking 
  epidemic; the state has the highest national rate of underage 
  drinking.4 
     In Wisconsin, when an intoxicated underage person injures or 
kills 
someone, people who knowingly sold or provided the alcohol can be liable 
for negligence. 
Wisconsin courts generally have premised liability of 
social hosts (alcohol providers other than commercial vendors 
such as bars or liquor stores) on affirmative 
actions such as purchasing alcohol for, or giving alcohol to, the 
underage person or 
contributing money toward his or her alcohol purchase. 
     Recently the Wisconsin Supreme Court addressed whether to impose 
liability 
when the defendants' only roles were as owners of property where an 
underage 
drinking party was held. In Nichols v. Progressive Northern Insurance 
Co.,5 involving the 
claims of a family injured in a collision with 
the car of an intoxicated teen 
who drank at the party, the court held that the property owners, who 
were aware of 
the drinking but did not provide the alcohol, could not be liable for 
common-law 
negligence. According to the court, such an extension of liability 
"would have no 
sensible or just stopping point" and should be left to the 
legislature. 
     This article explores the history of social host liability in 
Wisconsin for 
underage drinking and the current state of the law in view of the 
Nichols decision.6 
Background
Section 125.07. Wisconsin prohibits alcohol 
possession or consumption by people under 
age 21 unless they are with a parent, guardian, or spouse over age 
21.7 Wis. Stat. section 125.07(1)(a) sets 
forth restrictions and prohibitions against providing alcohol to such 
unaccompanied underage persons.8 Foremost 
among these is that no 
person9 "may procure for, sell, 
dispense or give away any alcohol beverages to any underage person not 
accompanied by his 
or her parent, guardian or spouse who has attained the legal drinking 
age."10 
     Wis. Stat. section 125.07(1)(a) also provides that an adult may 
not "knowingly permit 
or fail to take action to prevent" an underage person's illegal 
alcohol consumption "on 
premises owned by the adult or under the adult's control," except 
when alcohol beverages are used 
exclusively as part of a religious 
service.11 Because premises is 
defined as property subject 
to a liquor license or permit,12 courts to 
date have held that this proviso does not apply 
to other properties owned by adults, such as private 
residences.13 Additionally, an adult may 
not "intentionally encourage or contribute to" an underage 
person's illegal possession or 
consumption of alcohol.14 
     People who violate Wis. Stat. section 125.07(1)(a) are subject 
to a civil 
forfeiture penalty or, for repeat offenses, a misdemeanor conviction 
with a fine, jail time, or 
both.15 
     Civil Liability. Wisconsin adheres to the common law rule 
that people injured by 
an intoxicated adult have no cause of action against the liquor 
provider, whether the provider 
is a vendor or a social host.16 For many 
years, the same rule applied in cases involving 
underage drinkers as well.17 
     In 1984, things changed. In Sorenson v. 
Jarvis,18 the Wisconsin Supreme Court 
held that 
a vendor who negligently supplies alcohol to a minor, causing 
intoxication and impaired 
driving ability, is liable to injured third persons. The following year, 
in 
Koback v. Crook,19 the supreme court 
extended liability to social hosts who provide alcohol to a minor. 
     Koback involved a negligence claim against parents who 
furnished alcohol at a 
high school graduation party hosted for their son and his friends. The 
plaintiff was 
seriously injured when she was thrown from a motorcycle driven by an 
intoxicated underage guest 
leaving the party. The court concluded that a social host who 
negligently serves or furnishes 
intoxicating beverages to a minor guest, with the result that the minor 
becomes intoxicated or 
has impaired driving ability, shall be liable to third persons in the 
proportion that the 
negligence in furnishing the beverage to the minor was a substantial 
factor in causing an 
accident or injuries.20 
     Wis. Stat. section 125.035. Following 
the Sorenson and Koback rulings, the 
Wisconsin Legislature wanted "to discourage the knowing provision 
of alcohol to underage persons 
by making providers liable for third-party 
injuries."21 Therefore, it abrogated 
immunity for 
people providing alcohol to underage persons unaccompanied by a parent. 
It enacted Wis. Stat. 
section 125.035, entitled "Civil liability exemption: furnishing 
alcohol beverages." The statute, 
in effect since Nov. 5, 1985, preserves immunity for furnishing alcohol 
to adults by 
providing that "[a] person is immune from civil liability arising 
out of the act of procuring 
alcohol beverages for or selling, dispensing or giving away alcohol 
beverages to another 
person."22 
     Pursuant to Wis. Stat. section 125.035(4), the statute excepts 
from immunity the 
knowing provision of alcohol to underage persons if injury to a third 
party 
results.23 There is no immunity if 1) a 
provider procures alcohol beverages for or sells, dispenses, or gives 
away alcohol beverages to an unaccompanied underage person - thereby 
violating 
section 125.07(1)(a); 2) the provider knew or should have known that the 
underage person was under 
the legal drinking age; and 3) the alcohol beverages provided to the 
underage person were a 
substantial factor in causing injury to a third party. 
     A violation of Wis. Stat. section 125.07(1)(a) supports a claim 
for negligence per 
se provided that these three elements are 
satisfied.24 Such claims then of necessity 
involve scenarios with three principal actors: the provider, the 
underage person, and the 
injured third party. There usually is no dispute as to whether an 
alleged tortfeasor is underage. 
Any role disputes usually involve whether a particular defendant was a 
"provider" or whether 
the plaintiff was a "third party" to the provision of the 
alcohol. 
     Provider Status. People who supply alcohol to an underage 
drinker who is accompanied 
by his or her parent retain immunity from liability and, thus, are not 
"providers" who face 
liability.25 The legislature presumes that 
in such situations the parent is minimizing risk 
by supervising the child. Accompanying requires a degree of 
individualized 
supervision.26 A parent's mere presence on 
the premises, without control over or knowledge of how much the 
child has had to consume, does not meet the accompanying 
standard.27 Parents who are 
accompanying their children also are not subject to liability as 
providers.28  
   
    Mark R. Hinkston, Creighton 1988 cum laude, practices with Dye, 
Foley, Krohn & Shannon 
S.C., Racine. 
 
In situations involving unaccompanied underage drinkers, whether a 
person is considered 
  a provider under the statute focuses on the person's acts with respect 
to the provision of 
  alcohol to the underage person. With the exception of parents who 
provide alcohol to their 
  children while accompanying the children (in which situations the 
parents are immune), a 
  person's relationship to the underage person will not have independent 
significance. Further, age 
  and labels do not determine whether one gets immunity or liability. 
Thus, both adults and 
  minors can be considered providers, and the fact that a provider is a 
peer, drinking buddy, or 
  social host is not of import.29 The 
locale where alcohol is provided also does not determine 
  whether immunity is afforded to the provider. Liability may be imposed 
whether alcohol is furnished 
  to an unaccompanied underage person at a formal event, such as a 
graduation party or 
  reception, or informally on a camping trip, at an impromptu backyard 
party, or at the corner 
  bar.30  
     Although the immunity exception is most often implicated in 
underage drunk driving 
cases, it is not limited to that 
scenario.31 Thus, for example, a third 
party who is assaulted by 
an underage drinker could take advantage of the immunity exception. The 
immunity exception 
also is not limited to specific types of injuries, and there is no 
express requirement that a 
third party's injury be caused by 
intoxication.32 Thus, an assault victim who 
sues only would 
have to prove that he or she was a third party injured because the 
defendant provided alcohol to 
an underage person, not that the underage person was intoxicated. 
     The Scope of "Procuring" 
Alcohol. To be considered a provider, one must 
knowingly "procure for, sell, dispense or give away" alcohol 
in violation of Wis. Stat. 
section 125.07(1)(a). It usually is easy to discern when someone sells, 
dispenses, or gives away 
alcohol, and most cases involving the illegal provision of alcohol will 
fall under one of 
those categories. However, on occasion courts have faced scenarios in 
which a person's role is 
less direct than that of a seller or one who gives alcohol directly to 
the underage person. 
This has necessitated exploration of what it means to procure alcohol 
for an underage person. 
     In 1997, in Miller v. 
Thomack,33 the supreme court considered 
a case in which 
underage friends gave money to a friend of legal age to buy beer. After 
they drank the beer, one 
of them caused a crash. The supreme court held that this was sufficient 
to impose liability 
on the underage friends, even though they did not actually distribute 
the alcohol. The 
court concluded that persons who contribute money to bring about the 
purchase of alcohol for 
an underage person whom they know, or should know, is under the legal 
drinking age, procure 
alcohol beverages for the underage person within the meaning of Wis. 
Stat. sections 
125.07(1)(a) and 125.035(4). 
     Because the statutes and legislative history were silent, the 
court looked to the 
common dictionary definition of procure: "to get possession 
of" or "acquire" or "bring about." 
It noted that the word was broader than to "furnish" or 
"provide" 
something.34 The court held that requiring 
an affirmative act in addition to purchase (for example, actually giving 
the alcohol to the minor) was not necessary to constitute 
procuring.35 However, the court 
mandated an intent element, stressing that 
procure requires, "when contributing funds, the intent 
of bringing about the purchase of alcohol beverages for consumption by 
an underage 
person."36 Thus, according to the 
court, this would not include a parent who gives his son "movie 
money" despite a suspicion that the son may buy 
alcohol.37
      "Third Party" 
Requirement. In assessing whether immunity does or does not apply, 
in addition to focusing on the defendant's relationship to the provision 
of liquor to an 
underage person, courts look at the plaintiff's status as a third party 
to that 
transaction.38 The injured party bringing 
suit must be a "third party" to the provision of alcohol. If 
the 
principals to a transaction - the provider and the underage drinker to 
whom the alcohol is 
provided - are injured as a result of the provision of alcohol, they are 
not considered third 
parties. Thus, people involved in the providing of alcohol to an 
underage drinker have no 
claim against other providers.39 Further, 
an underage drinker injured as a result of his or 
her drinking has no claim against those who provided the 
alcohol.40 
     There is an exception to the "underage drinker has no 
claim" rule in situations in 
which the underage drinker received the alcohol from a companion 
underage drinker who was 
illegally provided the alcohol by another person. In 2003, the supreme 
court in 
Anderson v. American Family Mutual Insurance 
Co.41 addressed whether a companion 
underage drinker was a 
"third party." In that case, a mother purchased a 
bottle of vodka for her underage son and left it 
in the kitchen with a note that he owed her $12. The son and his friends 
drank the vodka at 
his family's vacation property. One of the friends died of acute 
alcohol intoxication. 
     The friend's family brought suit against the mother, her 
homeowner's insurer, and 
her son. The court of appeals affirmed the circuit court's ruling that 
the son was immune, 
holding that neither he nor his friend was a minor at the time "so 
neither had any heightened duty 
to supervise the other."42 As for the 
mother's liability, she could be liable only if the 
decedent underage drinker was a third party to the subject transaction - 
the mother's providing 
of the alcohol to her son. The court found that he was a third party 
since he had no role in 
the mother's provision of alcohol to her 
son.43 The Wisconsin Supreme Court agreed, 
noting 
that there was no evidence that the decedent was present at the time the 
mother provided the 
vodka to her son, that he contributed money toward its purchase, or that 
he asked his friend to 
get vodka from his mother.44 The decedent's 
status as a companion underage drinker was 
irrelevant because the immunity statute does not limit third-party 
status by "age, condition of 
sobriety, or separation of circumstance from the alcohol 
consumption," although these are factors 
relevant to the comparison of 
negligence.45 The supreme court noted that 
Wis. Stat. 
section 125.035 "is not concerned with a person's own contributory 
liability for providing alcohol 
to himself, although the injured person's contributory fault may bear 
upon a defendant's 
ultimate liability."46
Common Law Passive Liability: Pre-Nichols
In Miller v. Thomack,47 the 
supreme court found a party liable for contributing money 
toward the purchase of alcohol. But what about a situation of 
passive liability - in which there has been no affirmative act of 
providing (selling, dispensing, giving away) alcohol or 
contributing toward its purchase? That issue was considered by the court 
of appeals in 
Miller,48 but not by the supreme 
court. The court of appeals addressed whether the owners of the 
vacation resort beach area where minors drank could be held liable under 
Wis. Stat. 
section 125.07(1)(a)3. for knowingly permitting or failing to take 
actions to prevent illegal 
underage drinking on premises owned or controlled by the adult. The 
circuit court denied the 
defendants' summary judgment motion, reasoning that there was a 
reasonable inference that one 
of the owners knew that it was likely that teenagers would drink on the 
beach. The court of 
appeals reversed, relying on the word 
knowingly in the statute. It concluded that there 
must have been evidence that the defendant had actual knowledge that 
underage drinking was 
occurring or was going to occur.49 The fact 
that young persons might drink on the beach did 
not suffice. 
     The plaintiff also argued that even if the statute was not 
violated, liability could 
be premised on common law negligence because "it was reasonably 
foreseeable that underage 
persons would drink on the beach and then drive, causing harm." The 
court of appeals declined to 
"create a common law duty that is broader than the duty" 
imposed by Wis. Stat. 
section 125.07(1)(a)3.,50 referencing its 
decision almost 10 years earlier in 
Smith v. Kappell.51 In that case, 
the Wisconsin Court of Appeals refrained from extending liability to a 
16-year-old girl who permitted her underage friends to drink in her 
mother's house. The court noted 
that other than "possibly furnishing a can opener and drinking some 
of the beer," her only 
participation was to allow access to the home for illegal beer 
drinking.52 The court concluded that 
extending liability to cover this conduct "based upon common-law 
negligence would go 
beyond prior decisions of our Wisconsin Supreme 
Court."53
     In 2004, in Alderman v. Topper A1 Beer & 
Liquor,54 the court of appeals again 
addressed the passive liability issue. 
Alderman involved the claims of a passenger seriously injured 
in a car accident caused by an intoxicated underage driver who had been 
allowed by a 
friend's parents to drink beer in the parents' home. The parents did not 
furnish the alcohol, 
although they were home at the time and at least one of them was aware 
of the drinking. 
     Hearkening back to Smith v. Kappell, the court of appeals 
held that the Wis. Stat. 
section 125.035 immunity exception did not apply to claims against the 
parents because 
"simply providing a place for an underage person to consume 
alcohol" does not satisfy the 
definition of "procure." The court also rejected the common 
law negligence claim, noting that "case 
law in Wisconsin clearly indicates that an adult does not have a 
heightened duty to 
supervise another adult's underage 
drinking."55 Although the court noted 
that it did not condone 
the parents' failure to take action to prevent or stop the underage 
drinking, it nonetheless 
left any change in the law up to the legislature, stating that the 
"case may provide an 
incentive for the legislature to extend liability to parents who 
knowingly allow the illegal 
consumption of alcohol in their 
home."56 
     The Wisconsin Supreme Court chose to not review the 
Alderman case. However, a few years later, the court agreed to 
consider the passive liability issue for the first time when 
the defendant property owners petitioned for review in the 
Nichols case.  
Nichols v. Progressive Northern Insurance Co.
On the evening of June 4, 2004, a group of underage high school 
students partied on 
property in Columbia County controlled by Edward and Julie Niesen. 
Several students consumed 
alcohol. After leaving, one of the underage drinkers drove her vehicle 
into oncoming traffic 
and collided with a vehicle carrying the Nichols family, severely 
injuring them. The 
Nicholses brought suit against the underage drinker, her insurer, the 
Niesens, and their 
homeowner's insurance company. 
     The Nicholses claimed that the Niesens were social hosts who, 
although they did not 
provide any alcohol to underage guests, allegedly were aware that minors 
were consuming 
alcohol on their property. The Nicholses alleged negligence per se on 
the part of the Niesens on 
the basis that the Niesens "knowingly permitted and failed to take 
action" to prevent the 
illegal consumption of alcohol by underage persons under their control 
contrary to Wis. Stat. 
section 125.07(1)(a)3. The Nicholses also asserted a claim for common 
law negligence, contending 
that the Niesens were negligent in failing "to take reasonable 
steps to supervise and monitor 
the activities on their property," which included drinking by a 
large group of minors. 
     Court of Appeals. The circuit court granted the Niesens' 
motion to dismiss 
the Nicholses' claims of negligence per se and common law negligence. On 
appeal, the court 
of appeals57 did not consider or apply the 
immunity statute (section 125.035) because 
the Nicholses did not allege that the Niesens provided alcohol. The 
court of appeals affirmed 
the dismissal of the negligence per se claim, holding that the Niesens 
could not be negligent 
per se for violating section 125.07(1)(a)3. because the Nicholses did 
not allege that the 
Niesen property was an "area described in a license or 
permit," which is the definition of 
"premises" as used in section 
125.07(1)(a)3.58
     The court of appeals reversed the dismissal of the common law 
negligence claim. The 
court framed the issue as whether the Niesens owed a duty to refrain 
from knowingly permitting 
minors to consume alcohol on their property, thus enabling them, 
including the driver who 
injured the Nicholses, to drive while 
intoxicated.59 The court of appeals 
concluded that it 
was reasonably foreseeable that permitting underage high school students 
to illegally drink on 
the Niesens' property would result in harm. It held that the Nicholses 
adequately alleged that 
the Niesens had a duty to refrain from knowingly permitting illegal 
underage drinking on 
their property.60 Because they further 
alleged a breach of the duty, causation, and damages, the Nicholses 
stated a claim for common law 
negligence.61 
     The court of appeals then analyzed whether liability was 
precluded by any of six 
public policy factors: 1) The injury is too remote from the negligence; 
2) the injury is out of 
proportion to culpability; 3) it appears "too highly 
extraordinary" that the negligence 
should have resulted in the harm; 4) "allowing recovery would place 
too unreasonable a burden on 
the tortfeasor"; 5) allowing recovery would open the way for 
fraudulent claims; and 6) 
"allowing recovery would enter a field that has no sensible or just 
stopping 
point."62 
     After considering the factors, the court of appeals ruled that 
the negligence 
claim should not have been dismissed. The injuries were not too remote 
from the negligence in 
that "[a]n underage person has the opportunity to become 
intoxicated if permitted to do so in 
an unsupervised location that the underage person may not otherwise 
have."63 The court also noted that 
recovery would not unreasonably burden the Niesens because adults who 
allow 
underage drinking on their property should anticipate being held 
accountable for resulting 
injuries, and permitting such accountability "will discourage 
adults from allowing this behavior to 
take place."64 Further, the court 
believed that because of the specific facts presented, 
recovery would "not enter a field with no sensible or just stopping 
point."65 All, in all, the court 
concluded that "[i]f adults do not knowingly permit underage 
drinking on their property, 
they will not become liable for the injuries resulting from underage 
intoxication."66 
     Wisconsin Supreme Court. On appeal to the Wisconsin 
Supreme 
Court,67 the Nicholses only sought review 
of the court of appeals' decision on the common law negligence claim. 
The supreme court noted that even if the court of appeals held that the 
Nicholses 
adequately pleaded a common-law negligence claim, the claim could be 
denied for public policy 
reasons.68 It analyzed the six factors 
applied by the court of appeals (and applied by the supreme 
court in prior cases).69 
     The supreme court focused primarily on the sixth factor: whether 
"allowing recovery 
would enter a field that has no sensible or just stopping point." 
The court discussed its decision 
a few years ago in Stephenson v. Universal Metrics 
Inc.,70 in which it refused on public 
policy grounds to allow a negligence claim against a person who promised 
to drive a drunk 
coworker home from a company party so the bartender would continue to 
serve the coworker. The 
supreme court in that case noted that "the possibilities for 
expanding liability would simply have 
too much potential to grow out of 
control."71 The Nichols court 
also referenced 
Smith v. Kappell, noting that "[l]iability has never been 
premised on the conduct that the Nichols 
alleged."72
     The supreme court expressed concern that to allow the claims 
would expand liability 
to include parents who should have known that drinking would occur on 
their property while 
they were gone and would lead to strict liability of property owners for 
any underage drinking 
on their property. The supreme court recognized Judge Deininger's 
dissent from the court of 
appeals decision: If such liability is imposed, "then parents or 
other owners of property 
occupied by sixteen- to twenty-year-olds will be well-advised to never 
leave home, or if 
they must, to ensure that all underage persons go elsewhere as 
well."73 
     The supreme court concluded "that the Nichols' claim should 
be barred on public 
policy considerations, since allowing recovery here would have no 
sensible or just stopping 
point."74 The court noted that neither 
the legislature nor prior Wisconsin case law has held a 
social host liable for the results of a guest's intoxication when that 
social host did not 
provide the alcohol. Liability has always required active, direct, and 
affirmative acts, such as 
the provision of alcohol (referencing the 
Stephenson decision).75 
     The court concluded "that a claim for common-law negligence 
cannot be maintained 
against social hosts who allegedly were aware that minors on their 
property were consuming 
alcohol, but who did not provide the alcohol, when an underage guest 
later was involved in an 
alcohol-related car accident."76 To 
hold otherwise would be a significant expansion of 
common-law liability, which is a task for the legislature, not the 
court. The supreme court 
encouraged "the legislature to address the question of whether to 
hold social hosts accountable for 
the types of actions alleged in this 
case."77 
Analysis
The Nichols decision is not an aberration. Courts of other 
jurisdictions also have 
declined to extend liability to people whose only connection to the 
subject underage drinking event 
was mere property ownership or knowledge of the 
drinking.78 The court's deference to the 
legislature also is not anomalous. The supreme court has consistently 
yielded to the legislature 
in matters involving alcohol regulation and 
control,79 even if it has not always agreed 
with 
the legislature's "wisdom" on 
issues.80  
     Although many states have underage drinking statutes, most of 
them criminalize only 
the active and knowing provision of alcohol to underage persons. 
However, some states have 
now made it illegal for social hosts to knowingly allow or knowingly 
fail to prevent 
underage drinking on the property, even if they did not furnish the 
alcohol.81 Some of the statutes expressly 
impose civil liability for 
violations.82 While none of the states 
appear to 
have imposed strict liability on social hosts for underage drinking (for 
example, imposing 
criminal liability for vacationing parents whose child has a party when 
they are away), there is 
a trend among municipalities across the country to pass social host or 
house party 
ordinances that impose liability regardless of a property owner's 
knowledge of underage drinking or 
provision of alcohol.83  
     In Nichols, the plaintiffs unsuccessfully premised 
negligence per se claims on Wis. 
Stat. section 125.07(1)(a)3. The other states' statutes that prohibit an 
owner from allowing 
underage drinking are similar to the section 125.07(1)(a)3. edict that 
no adult "may knowingly 
permit or fail to take action to prevent" illegal underage drinking 
on the adult's 
premises. However, unlike the Wisconsin statute, the other statutes 
expressly apply to social hosts. 
If the legislature decides that it wishes to expand the Wis. Stat. 
section 125.035 immunity 
exception to include social hosts who permit or fail to prevent underage 
drinking, perhaps 
it will do so by tweaking the definition of "premises" so that 
it does not apply by definition 
to only those with liquor licenses or permits. 
     If the legislature does not act in this regard, perhaps some day 
the Wisconsin 
Supreme Court will address the issue of the section 125.035 
"premises" definition. The plaintiff 
in Nichols did not ask the supreme court to review the issue of 
whether section 
125.07(1)(a)3. applies to property not subject to a liquor license or 
permit. Nonetheless, Chief 
Justice Abrahamson, in her concurring opinion, expressed reservations 
about what she calls the 
court of appeals' "sketchy analysis" and "puzzling" 
interpretation of section 125.07(1)(a)3. 
in dismissing the complaint.84 Justice 
Abrahamson noted that when that section "is read in 
context and in its entirety," the word "premises" seems 
to mean "property," not an area 
described in a liquor license or 
permit.85 Justice Abrahamson's view on the 
subject may be a 
harbinger for future litigants that the court may see the 
"premises" definition as a ripe issue. 
     At the end of its opinion, the supreme 
court reiterated its resolve to, when appropriate, decide negligence 
cases on public policy 
grounds.86 In concluding that to allow the 
plaintiffs' negligence claim "would have no sensible or just 
stopping point," the court is 
doing what by its own admission it has in the past called "judicial 
line drawing" in order "to 
make a rule in each case that will be practical and in keeping with the 
general understanding 
of mankind."87 While the court has 
drawn a firm line at the feet of passive landowners with 
cursory knowledge that minors are drinking on their land, the court's 
reference to 
allegations that the Nicholses did not make is perhaps significant. For 
example, the court noted that 
the Nicholses did not allege that 1) the students gathered at the 
property because they knew 
that the Niesens would let them drink alcohol obtained 
elsewhere;88 2) the Niesens knew, in 
advance, that the students would be 
drinking;89 3) the Niesens knew that the 
tortfeasor 
driver specifically was drinking or intoxicated, impaired, or unable to 
safely drive;
90 or 4) the Niesens allowed underage drinking 
or aided, agreed to assist, or attempted to aid the 
students in the procurement or consumption of alcohol on premises under 
their 
control.91
     Does this litany of omitted allegations portend an opportunity 
for further "judicial 
line drawing" if the Wisconsin appellate courts are presented with 
claims against social hosts 
who, although they did not actively provide the alcohol, are more than 
just passive property 
owners with mere knowledge of underage drinking? For example, what about 
situations in which a 
social host does not provide the alcohol but one or more of the 
following circumstances exist? 
The property owners have had a long history of turning a blind eye to 
underage drinking on 
their property (and the drinkers go there specifically because it is a 
"safe haven"). The 
parents have advance notice of a large underage drinking party at their 
house and their child's 
illegal purchase of alcohol (and storage of it in the house) but do 
nothing. Vacationing 
parents come home early and find intoxicated minors who have no 
intention of stopping a party 
(and intend on driving drunk when they do leave). Parents allow drinking 
of alcohol provided 
by other people on the condition that the minors agree to hand in their 
car keys and stay 
the night (but the minors later renege on that promise). Parents host a 
graduation party, 
with many students in attendance, and although they serve no alcohol, 
other adult guests 
bring alcohol and provide it to the students. The court's line drawing 
in 
Nichols appears to have kept the door open for potential judicial 
consideration of these contexts. 
Conclusion
From an emotional and altruistic perspective, it is hoped that courts 
will never have 
to consider another underage drinking case. Alas, despite growing 
efforts to stem the 
underage drinking tide, it will never be completely eradicated. In view 
of the ubiquity of 
social events and the prevalence of alcohol (and youthful determination 
to procure it), as well 
as the supreme court's tacit allusion to other scenarios for which the 
court might impose 
liability, it is likely that Wisconsin courts will be asked to consider 
other potential 
passive liability situations in the future. It also is possible that 
Justice Abrahamson's 
concurring opinion will keep the premises-definition issue in play in 
the absence of legislative intervention. 
     In Nichols, the supreme court exercised measured 
discretion with the appropriate 
amount of deference to the legislature to decide an issue that hits home 
with virtually everyone. 
As for its practical impact, it is unlikely that the decision will cause 
an influx of 
underage drinking. One doubts that people will now host such parties en 
masse provided that others 
buy the booze or that parents will encourage their children to have 
parties when they are out of town because they know that no matter what 
happens, they have no liability if they did 
not furnish the alcohol. As for future litigants, it obviously is 
inadvisable for social hosts 
to interpret the decision, and its deference to the legislature, as a 
bright-line message 
that they will never have liability if they just never buy the booze. 
Further, since the 
supreme court obviously does not condone underage drinking and abhors 
drunk driving, its decision 
is not a license to Wisconsin homeowners to host underage 
"BYOB" parties with impunity. 
     Almost 25 years ago, the Wisconsin Legislature took notice of 
the supreme court's 
pronouncements in the Sorenson and 
Koback cases by vitiating immunity for people providing 
alcohol to underage persons. It remains to be seen whether the 
legislature will heed the 
court's clarion call in Nichols to consider the issue of social 
host passive liability. Until 
such time, merely furnishing the locale for the party and not the 
alcohol - even with knowledge 
of underage drinking - will not impose liability. 
Endnotes
Wisconsin Lawyer