We do not discuss the appellate jurisdiction questions entertained by the Arizona Supreme Court but go directly to the duty issue. The Department of Liquor Licenses and Control owed no duty to prevent a bar with a liquor license from overserving its customers. While the Department has specific authority to act under state statutes, the statutes do not require or prohibit certain conduct. “To create a duty, therefore, a statute must regulate the defendant’s conduct in a way that requires or prohibits certain conduct, such that the defendant must conform to a particular standard of conduct. Such a statute provides notice to affected parties about how they must conform their conduct to the requirements of the law.” The statutes here are discretionary. The Department may suspend or revoke a license, may conduct inspections, and may impose civil penalties. Such permissive statutes cannot serve as a basis for a public policy duty. The court also considered statutes imposing liability on those who serve, sell, or furnish alcohol. The court then rejected the thinking that the qualified immunity statute itself supports a duty because the staute states that the gross negligence standard applies to a public entity issuing a license or failing to revoke or suspend a license. The qualified immunity statute does not affirmatively impose a duty. The court gives a nod to the court of appeals’ opinion from almost ten years ago limiting claims against public entities based on broad duties: Hogue v. City of Phoenix, 240 Ariz. 277 (App. 2016). We blogged that case and discussed the “flip the analysis” point back then.
link to opinion