CGA Law News & Blog

How To Protect Your Business from Litigation

access_time Posted on: March 15th, 2023

Litigation has affected many Pennsylvania Liquor Control Board (PLCB) licensees with dram shop actions, slip and fall accidents, workers’ compensation claims, etc.  The most well-known way to protect assets is to hold the PLCB license under a separate operating company or individual. Another way to protect a business is to use high-quality surveillance cameras. Cameras can be installed in conspicuous places, such as doorways, parking lots, the restaurant seating area, the bar seating area, and possibly outside lavatories.

Many restaurants or social clubs that use surveillance cameras only retain the tapes for one (1) month to sixty (60) days. Given the fact that the statute of limitations in a dram shop action or an action based on negligence is two (2) years, CGA recommends downloading the surveillance footage and retaining it for at least two and a half (2-1/2) to three (3) years. The statute of limitations in a negligence action is two (2) years from the date of the occurrence, so if an individual brings an action one (1) day from the date the statute expires, the typical business that regularly discards tapes would not have the footage to defend their business from a lawsuit or workers’ compensation claim. Also, destruction of tapes or footage may be considered spoliation of evidence, which could be detrimental to the defense of a claim or lawsuit.

Conversely, if a business saved the tapes, the footage could establish how the fall or incident occurred or show that the individual/claimant was not visibly intoxicated. Surveillance tapes should clearly depict faces and images. Clarity of footage is as essential as having cameras in place.

Other suggestions to minimize your exposure would be: (1) provide additional lighting outside and possibly inside the premises; (2) limit the evening hours; and (3) maintain a written list of those patrons who have been barred from the licensed premises. The list should include, at minimum, the first and last name of each person barred, the date the person was barred, and the length of time the person is barred. The exterior lighting should be bright enough to permit patrons to be readily identifiable as they enter and exit the licensed premises.

CGA attorneys are available to discuss these or any other ways to mitigate your exposure to a dram shop action and other PLCB licensing or enforcement issues. The CGA attorneys experienced in licensing, enforcement, and other PLCB and PLCE matters are listed below.

Charles B. Calkins, Rebecca M. Shanaman, Evan M. Gabel, and Stephen R. McDonald

CGA Law Firm’s Litigation Department is skilled in defending you and your businesses from outside parties. Contact the CGA Litigation Attorneys at 717-848-4900 or at [email protected] to schedule an initial consultation.

CGA Law Firm Attorney Charlie Calkins

Charles B. Callkins


Charles Calkins devotes a substantial portion of his practice to representing corporations, partnerships, limited partnerships and limited liability corporations. He handles matters involving, asset purchases, stock transfers, PA Liquor Control Board matters, probate and estate planning matters and the buying and selling of commercial and residential real estate. Charles also represents clients regarding personal injury matters, including workers compensation.

Read Charles’ Bio Page in full HERE.