Is Alcohol a Liability at HOA and Condo Events in Pennsylvania?

By Steven Sugarman, Esq., Partner & Sophia Nisivoccia, Law Clerk

Homeowners and condominium associations continue to seek ways to foster a sense of community, often hosting social events and gatherings to bring residents together. In many communities, it is common for alcohol to be served at these gatherings. Sometimes, attendees are asked to contribute money to offset the cost. Other times, the community sponsors clubs where alcohol is a featured activity, such as wine and whiskey tasting clubs. What happens if something goes wrong at one of these events? Who’s responsible if someone gets hurt or causes damage after drinking at an association-sponsored gathering?

Understanding Liability Where Alcohol is Served

If someone is injured at a community-sponsored event, a lawsuit is possible. But does alcohol increase the risk that the association will be found liable?

When alcohol is involved, liability generally falls into two legal categories: licensed establishments and social hosts. Licensed establishments, such as bars, restaurants, or caterers, sell alcohol for profit and are subject to Dram Shop laws. These laws can hold the licensed alcohol seller legally responsible for serving alcohol to someone who is visibly intoxicated or underage, and the inebriated person later injures someone or causes harm.

Social hosts, on the other hand, are private individuals who serve alcohol in non-commercial settings, like at a house party. In most states, including Pennsylvania, a social host is not considered to be responsible for the actions of their guests unless alcohol is served to a minor.

Community Associations — which may include homeowners associations (HOAs), condominium associations and cooperatives — do not obviously fit neatly into either category. An association is not licensed to sell alcohol, but it is also not an individual host. This legal gray area means that while associations are not likely to be liable for alcohol-related injuries under traditional interpretations of the law, they are not immune from legal claims. Injured parties may still assert claims for injuries caused by someone who used or overused alcohol at an event, especially if the association sanctioned or organized the gathering.

A Real-Life Example

In 2023, in Klar v. Dairy Farmers of America, our Pennsylvania Supreme Court evaluated a company that hosted a golf outing where alcohol was served. After the event, an employee drove drunk and caused an accident. The injured person attempted to sue the company under the Dram Shop Act, arguing that because the company collected money to cover event and alcohol costs, it was acting like a licensed establishment. The Court rejected the claim and ruled that the company was neither a licensed alcohol vendor nor a social host and therefore could not be held liable under the Dram Shop Act. This case illustrates how courts may interpret liability when alcohol is served in non-traditional settings.

What This Means for Community Associations & HOAs

While a community association is not likely to be held legally responsible under current laws, prudence suggests taking steps to minimize the risks. An association should review its insurance policies to ensure that there is coverage for “special events” and that there are no exclusions related to alcohol use. If the policy does not clearly cover such events, or if coverage is unavailable, the association might want to reconsider how alcohol is handled at community functions.

For example, if the event is BYOB (“bring your own bottle”), responsibility for “serving” the alcohol may shift to individual residents and could significantly reduce the risk that the association could be found liable for causing alcohol-related harm. It also simplifies event planning and avoids the complications that can arise when the association is seen as providing or facilitating alcohol service. A second approach is to have an independent group of owners (such as a club) sponsor the event. The group can then sign an agreement to indemnify the association in exchange for use of the association’s facilities for the gathering.

Ultimately, when organizing any event involving alcohol, it’s wise for associations to consult with their insurance provider and legal counsel. The attorneys in the Community Association Law Department at Gawthrop Greenwood, PC would be pleased to assist your community association in addressing these important issues and avoiding any traps of liability at social events.

Steven L. Sugarman is a partner at Gawthrop Greenwood, PC and a nationally recognized community association law attorney who has played a critical role in establishing statutory and decisional law governing Pennsylvania’s common interest communities (CICs). As the chair and active member of the Community Association Institute’s (CAI) Legislative Action Committee for many years, Sugarman drafted and advocated for key amendments to Pennsylvania’s statutes as community associations have evolved into the fastest-growing form of housing. He also serves as an expert witness on community association matters brought before Pennsylvania’s courts and General Assembly. A member of the prestigious College of Community Association Lawyers since 2000 and a past president of CAI’s regional chapter, Sugarman developed and teaches one of the few law school courses nationwide on condominium and homeowner association law as an adjunct professor at the Villanova University Charles Widger School of Law. He is a frequent lecturer at the local and national levels on real estate and community association matters. For more information, contact Steve at ssugarman@gawthrop.com or 610-889-0700.

Sophia Nisivoccia is a 2025 Summer Law Clerk at Gawthrop Greenwood and is pursuing her J.D. at Seton Hall University School of Law.