When someone sues for injuries from a vehicle accident and there is alcohol involved, the shop that served the alcohol might also get sued. If the shop is liable, its insurance company might pay at least part of the outstanding claims. However, when it comes to energy drinks containing alcohol, insurance companies have resisted making payments -- and the Seventh Circuit has supported them.
The circumstances involving energy drinks are in some ways quite different from alcohol providers. Unlike alcohol providers, energy drink providers may have insurance carriers with a liquor liability exclusion. This becomes quite problematic for the energy drink providers because -- not surprisingly -- those who consume energy drinks with alcohol can become severely injured. In one recent case, Netherlands Ins. v. Phusion Projects, Inc., the company Phusion was a manufacturer and distributor of "Four Loko," a beverage that contained alcohol, caffeine, guarana, taurine, and wormwood. After one consumer drank it, he was unable to fall asleep for 30 hours and accidentally shot himself in the head. In another case, a passenger in a car was injured after the driver drank Four Loko and drove recklessly, at speeds above 100 miles per hour. In a third case, a consumer drank the beverage, had a fit of paranoia, and ran onto a busy highway, where he was struck and killed. Finally, in a fourth case, one consumer complained of heart problems after drinking Four Loko and blamed the beverage for his condition.
In all cases, there were lawsuits. Netherlands, the insurer, claimed that it was not required to compensate these cases due to the fact that there was a liquor exclusion. The Seventh Circuit ultimately agreed, finding that none of the tortious acts committed by Phusion were separate from the act of providing alcohol. Therefore, Phusion could not ask Netherlands to issue payouts for the accidents because of the alcohol exclusion. Phusion would be required to pay for the injuries itself.
Continue reading "Seventh Circuit Finds That Insurers Not Responsible For Injuries Caused By Energy Drinks Mixed With Alcohol" »