Chapter 10 - § 10.13 • ALCOHOLIC BEVERAGES

• Jurisdiction: Colorado

§ 10.13 • ALCOHOLIC BEVERAGES

The authority of governments to control the sale and consumption of alcoholic beverages is unquestioned, and in a well-known Florida case, the court allowed condominium associations to regulate alcohol consumption.⁴⁸⁶ The majority of unit owners in the association had approved a rule that prohibited alcohol in the club house and nearby areas. Unit owners challenged the rule and sought to have its enforcement enjoined. They offered evidence at trial that there had been no bothersome incidents at club house social events when alcohol was served. The trial court held the rule could not be enforced because unit owners should be able to engage in lawful activity that does not constitute a nuisance. However, that decision was reversed on appeal. The appellate court held that, so long as the adopted standards were reasonable, an association could regulate conduct that is not a legal nuisance. It concluded:

[R]estrictions on the use of alcoholic beverages are widespread throughout both governmental and private sectors; there is nothing unreasonable or unusual about a group of people electing to prohibit their use in commonly owned areas.⁴⁸⁷

Associations will have three main concerns about use of alcoholic beverages on common elements: noise and/or bothersome behavior, damage to common property, and liability. To be able to monitor and prevent these problems, some associations limit consumption of alcohol on common elements to events sponsored and supervised by the association. In that case, the association is probably a "social host" for purposes of "dram shop liability."⁴⁸⁸ Most associations allow unit owners, or even nonresidents, to use common areas for private events that are not sponsored by the association. Whether the association has rules about serving alcohol at these events or not, it should consult with the association attorney to learn what, if anything, it can and should do to minimize any possible liability. The association and the...