The charges laid under the Liquor Licence Act against the directors, manager and bartenders of the Lake Joseph Club illustrate all too vividly the vulnerability of directors and officers to legal liability.

There are hundreds of useful protocols in place about responsible serving and they are often followed - but not perfectly.

When things go wrong, all concerned have to demonstrate Due Diligence.

Due Diligence is a defence to just about any liability situation - even when things do go wrong - but it is hard to prove unless you are prepared in advance.

Here are some guidelines:

• First of all, a policy is needed to outline that the potential risk is well understood and that you are serious about dealing with it;
• Next, you need a set of procedures to control the risk;
• Thirdly, you need to be able to show that the procedures were followed.

We have labelled these three elements “The Three P’s” - Policy, Procedures and Proof.

If the Three P’s are firmly in place, there is a better chance of being able to show that you have taken “reasonable steps” to prevent incidents.

Just “doing the right thing” is not enough when you are facing liability.

You need a system that will be immediately available to satisfy investigators and the courts that you have exercised Due Diligence.
If you are serious about controlling your liability, you will seriously consider utilizing the Fourteen Point Formula - a “Trial Ready” system for satisfying accountability requirements and providing protection for your organization and you.