Legal Edition
The weather is good and neighbors are out and about. In this season of blockbuster movies what better way to entertain a community association than with a blowout soiree. From pool parties to July 4th cookouts, neighborhood events are a great way to foster community spirit, friendships and interest. Before allowing the use of association property and funds, it is important to consider the legal ramifications and steps that can be taken to avoid turning a summer feel-good hit into a horror film. This article is concerned only with those parties that are officially sponsored by the Association – not impromptu parties thrown by owners on owner property. While nowhere near an exhaustive list of things that should be considered for neighborhood events, below are several areas that are common concerns or causes of liability for a community association.
The Who’s Who of the Party
The covenants generally provide a community association with certain legal protections from members who are injured on association property. This protection generally also applies to the guests, tenants and occupants of members. However, if an association issues invitations to non-members its liability increases. This is because those non-members, in most cases, become “invitees” and are afforded greater protection under Georgia law. They can hold the association liable for damages from injuries on association property that a member may be precluded from recouping from the association. This holds especially true if the association charges non-members admission to the party, in which case the association takes on a whole host of liabilities it would not have otherwise. Also keep in mind that, while it is relatively easy to hold members responsible for damage to association property, it takes a lot more work to do so for non-members who are not bound by the covenants.
The best advice to minimize liability is to keep the event members only. If an association feels it must invite non-members it should get an opinion from its counsel as to the best way to mitigate liability and also contact its insurance provider to ensure that hosting an event to which non-members are invited is covered by its liability policy.
Location, Location, Location
If a community association party will utilize an association’s amenities, the board of directors should ensure that the number of people estimated to attend will not exceed any relevant usage limits – especially if an association pool or clubhouse will be part of the festivities. Any property to be used should be inspected prior to the party to ensure there are no dangerous conditions that should be remedied before guests arrive. If the association has decided to allow non-members, it may need to make accommodations in accordance with the American with Disabilities Act to allow the disabled to utilize the facilities. Will the event include use of private or public streets? If so, the association should ensure that usage will not violate any state or local laws or ordinances.
Pass the Hot Dog but Hold the Shots
If association funds are being used and/or the association is contracting for food and drinks, it becomes potentially liable. Community associations should consider food allergy issues – especially for food being served to children. In addition, if association funds are being used then the association should ensure that the foods being served include something that everyone can partake in no matter their dietary restrictions based on medical issues, political ideologies, or religion.
The best bet is not to serve alcohol. Serving alcohol in Georgia requires a license so the Association would either have to obtain one or hire someone to serve the alcohol that has a license. In addition, the association could be liable if minors are served alcohol or if any person is over-served and causes themselves or others harm during or after the party. If an association insists on alcohol at a party, the board of directors should coordinate closely with its attorney and insurer to make sure there are procedures in place to ID people getting drinks, to keep people from having too many drinks, and to keep people from driving after they’ve had too many drinks. An association can lessen this liability by allowing people to bring their own drinks, but it would still be a good idea to have people at the party watching to make sure no minors drink and intoxicated members do not drive.
All in all, parties can be a great way to add value to a community and bring neighbors together. As long as the Board considers and accounts for potential liability, a community association should not be afraid to host a box office hit of a party.