Federal preemption doctrine does not apply to riverboat casino dram shop case

Law Reporter, Apr 2003

Recent Cases

ADMIRALTY

Federal preemption doctrine does not apply to riverboat casino dram shop case.

Horak v. Argosy Gaming Co., 648 NW2d 137 (Iowa 2002).

The Iowa Supreme Court held that the state dram shop act is not preempted by federal admiralty law in a negligence suit against a riverboat casino.

In this case, Morales became intoxicated aboard a riverboat casino. After leaving the casino, she drove her car off the road and suffered fatal injuries.

The administrator of Morales's estate sued the casino on behalf of Morales's children, alleging violation of the Iowa dram shop act, Iowa Code Ann. 123.92. A jury found defendant liable. Defendant appealed, arguing that federal admiralty law preempted plaintiffs' dram shop claim.

The Iowa Supreme Court held that because there is no equivalent of a dram shop law in federal admiralty law, the preemption doctrine does not apply in this case. The court noted that Article III of the United States Constitution, 28 U.S.C. (sec)1333(1)(2001), grants jurisdiction to federal courts while "saving to suitors in all cases all other remedies to which they are otherwise entitled," effectively granting state courts concurrent jurisdiction in admiralty cases. Citing Yamaha Motor Corp. v. Calhoun, 516 U.S. 199 (1996), 39 ATLA L. Rep. 99 (Apr. 1996), the court noted that state courts are free to exercise concurrent jurisdiction in cases where state law is not inconsistent with federal admiralty law. The fact that there is no federal maritime dram shop law necessarily means that state law does not conflict with federal maritime law. Furthermore, the court said, it would be absurd to hold that Iowa's liquor laws do not apply to defendant, which holds a gaming license and liquor license under Iowa state law, and carries dram shop insurance.

Accordingly, the court affirmed the trial court's decision.

Plaintiffs' Counsel

John M. Loeschen, Burlington, Iowa

Documents in Yamaha Motor Corp. v. Calhoun are available through the Court Document Sets section in the back of this issue, courtesy of plaintiffs' counsel.