The Indiana Supreme Court has ruled that a liquor liability exclusion unambiguously precluded any duty to defend a suit in which an injured motorist alleged that a bar had negligently allowed a customer to become inebriated. The case is Ebert v. Illinois Cas. Co., 2022 Ind. LEXIS 352 (Ind. 2022).

On July 5, 2015 William Spence drank alcohol at a venue called Big Daddy's Show Club and subsequently drove away in his truck. Meanwhile, as the Eberts were driving, they approached a four-way intersection, stopped at the flashing red lights and proceeded down the street. Spence failed to stop at the flashing lights and collided with the Ebert vehicle. At the time of the accident, Spence had a blood alcohol level of 0.195%. Earlier that night, Spence had been removed from Big Daddy's.

The Eberts filed a lawsuit against Big Daddy's, claiming that the company violated Indiana's Dram Shop Act, by serving Spence alcohol when it knew or should have known of his inebriation. The suit also named Big Daddy's, Little Daddy's, and owner Daniel Parks, (the Parks defendants) accusing them of (a) continuing to serve Spence alcohol when they knew, or should have known, he was inebriated and impaired; (b) allowing Spence to drive his vehicle from Big Daddy's when they knew, or should have known, he was inebriated and impaired; (c) failing to notify law enforcement that Spence left Big Daddy's and operated his vehicle in an inebriated state; and (d) failing to obtain alternative transportation for Spence to prevent him from operating his vehicle.