96 N.J. 538, 476 A.2d 1219 (N.J. 1984)
Kelly v. Gwinnell is a landmark New Jersey Supreme Court decision that expanded negligence liability to social hosts who serve alcohol to adult guests.
Does a social host who serves alcoholic beverages to an adult guest, knowing the guest is intoxicated and will be operating a motor vehicle, owe a duty to and bear liability for injuries to third parties proximately caused by the guest's negligent driving?
A social host who serves alcoholic beverages to an adult guest, knowing both that the guest is intoxicated (i.e., visibly intoxicated) and that he will thereafter be operating a motor vehicle, is liable for injuries inflicted on a third person as a result of the negligent operation of a motor vehicle by the guest.
Yes. Social hosts owe a duty under these circumstances and may be held liable for injuries to third parties caused by the intoxicated guest's negligent driving. The court recognized the cause of action, reversed summary judgment for the hosts, and applied the new rule to the parties and prospectively to future causes of action.
Kelly is a leading case in the evolution of tort duty, marking the transition from categorical immunity for social hosts to a targeted negligence duty keyed to foreseeability and public policy. It is frequently taught for its structured duty analysis, its treatment of proximate cause in the furnishing-versus-consumption debate, and its calibrated approach to prospectivity. The case influenced both judicial decisions and later legislative action (including New Jersey's Social Host Liability Act) and continues to frame how courts analyze responsibility for alcohol-related harms in noncommercial settings.