Legal Question in Real Estate Law in California

Re: HELP PLS - New Years Eve Party Dilemma

From a practical standpoint, anyone can sue anyone for what he/she believes to be a legitimate claim. No contract can guarantee you won't be sued. I suspect the contract clause is an indemnity claim that says that the bar owner agrees to indemnify and hold you harmless against claims that could be filed by third parties relating to this event. This doesn't mean that the third party can't file a court case. It does mean that the bar owner is supposed to ultimately have the liability as between you and him. Again, looking at practicalities rather than legalities, if there was really a big claim, would a bartender have the financial means to defend the case and/or pay you back? The answer to this question typically leads to requiring event insurance, which can be expensive. At some point, you have to weigh the likelihood of a problem against the benefit you are receiving under the contract. An attorney can help you maximize the protections provided under the agreement to help create a better risk reduction, but no agreement creates total risk elimination.

Re: HELP PLS - New Years Eve Party Dilemma

I agree with Ms. Cowin.

I would add the following:

(1) Your homeowner's or similar insurance policy probably won't cover anything arising out of a commercial activity such as this.

(2) The bar owner's license to sell alcohol isn't portable. There MIGHT be some Alcoholic Beverage Control Board rule under which he could get a temporary license for an off-premises event, but that's very unlikely for an after-hours event in a residential location.

(3) If alcohol is served and an entry fee is charged, I'm almost certain the ABCB would consider this selling alcohol just as much as if the guests were paying by the drink.

(4) If the bar owner's license is suspended or revoked, he will be ruined financially and will be in no position to fund his indemnities.

(5) Your collaboration in the event might subject you to criminal charges for which a financial indemnity agreement would provide no protection. (I'm uncertain if your role involves a violation of law, but I'd worry about possible charges).

Re: HELP PLS - New Years Eve Party Dilemma

Probably not. Its not enough.

Additionally, you would want to make sure 1. that the bar owner has insurance that covers your property, liability on your property and damage to your property and 2. you have insurance that covers what the bar owner does or does not do and your property, as well as any liability.