Deena Barnes filed suit against DLN Enterprises, Inc. (DLN), owner of Hank & Jerry's Tavern (the Tavern)
Question:
Deena Barnes filed suit against DLN Enterprises, Inc. ("DLN"), owner of Hank & Jerry's Tavern (the "Tavern") in Rockdale County, as well as DLN's sole shareholder, Richard Smith, to recover for injuries she sustained after being involved in a car accident with an intoxicated patron of the Tavern. Barnes brought claims pursuant to Georgia's Dram Shop law, OCGA 51-1-40, as well as claims for negligent training and supervision, and for punitive damages. Smith moved for summary judgment on the ground that there was no basis to pierce the corporate veil to find him personally liable for torts allegedly committed by DLN. The trial court granted summary judgment to Smith, and Barnes appeals, contending that her claims for negligent training and supervision provide a basis to hold Smith individually liable. We disagree and, accordingly, affirm. The record shows that on November 19, 2012, Cyrus Scott Knight was briefly at the Tavern in the afternoon, when he drank a beer and a Jagermeister shot. He returned to the Tavern around 11:00 p.m. and drank half of a beer and about one-and-a-half "Jager bomb" drinks.
The night bartender was the supervisor of the Tavern on the night of the accident. She noticed that Knight's eyes were glossy, and he was belligerent. The bartender unsuccessfully tried to take Knight's keys, offered to call him a cab, and offered to drive him home. She locked the front door to attempt to keep Knight from leaving, but saw another patron let Knight out after he became increasingly belligerent. Knight told the 418bartender that he was going to nap in his car and she believed him, but then she heard his car drive away. Even though she knew Knight should not be driving, the bartender did not call the police before or after Knight left the Tavern because she knew him personally and did not want him to get in trouble with the law.
After leaving the tavern, Knight's vehicle struck Barnes's vehicle on I-20. Barnes's vehicle overturned, and she was seriously injured. Barnes subsequently filed suit against DLN and Smith, alleging that Smith negligently trained and supervised the Tavern's employees. Smith moved for summary judgment on the ground that no evidence supported piercing the corporate veil and allowing Barnes to sue him personally. Barnes responded that her claims for negligent training and supervision provided grounds to impose personal liability on Smith separate and apart from piercing the corporate veil. The trial court granted summary judgment to Smith, and this appeal ensued.
Barnes argues that the corporate veil does not shield Smith from personal liability for negligently training employees of the Tavern. We disagree. Although this Court has recognized that generally an officer of a corporation who takes part in the commission of a tort by the corporation is personally liable therefor, we have also held that this rule is inapplicable to claims against corporate officers involving negligent training of corporate employees because a corporate officer's failure to properly train an employee does not constitute sufficiently direct participation in a tort leading to a plaintiff's injuries. Beasley v. A Better Gas Co., 269 Ga.App. 426, 429 (2), 604 S.E.2d 202 (2004); see also Dempsey v. Southeastern Indus. Contracting Co., 309 Ga.App. 140, 144 (3), 709 S.E.2d 320 (2011) ("mere fact that an injury occurred during a period when a corporate officer was responsible for employee training and dispatch is not sufficient to support an inference that the injury was caused by some actionable negligence on the corporate officer's part." In this case, Barnes sought to do precisely this. Consequently, the trial court properly granted summary judgment to Smith on Barnes's negligent training claim. Barnes also contends that summary judgment to Smith was improper on her negligent supervision claim. We disagree. "For an employer to be held liable for negligent supervision, there must be sufficient evidence to establish that the employer reasonably knew or should have known of an employee's tendencies to engage in certain behavior relevant to the injuries allegedly incurred by the plaintiff." (Citation and punctuation omitted.) Novare Group, Inc. v. Sarif, 290 Ga. 186, 190-191 (4), 718 S.E.2d 304 (2011). Here, the evidence showed that the bartender who served Knight alcohol the night of the accident was the supervisor of the shift. Barnes has not pointed us to any evidence, however, and we have found none, which demonstrates that Smith knew or should have known that the bartender required additional supervision based on her history of serving alcohol to patrons. Barnes had an obligation to respond to Smith's motion for summary judgment by pointing to specific evidence giving rise to a triable issue on her negligent supervision claim. Barnes failed to come forward with such required evidence. Accordingly, Smith was entitled to summary judgment on Barnes's negligent supervision claim. Judgment affirmed.
QUESTIONS ABOUT THE CASE
What was the basis of the plaintiff's claim against the tavern? Does Georgia recognize a cause of action against a corporation who takes part in a commission of a tort? Would that rule apply in this case? Why? According to the court, what is the proper way to show that a corporation is liable for negligent training of its employees?