The term “venue crisis” has become common in South Carolina, referring to a challenge facing local businesses and the state’s legal landscape. The issue stems from specific legal and economic pressures that have created a difficult operating environment for many establishments, prompting discussion among business owners, patrons, and legislators.
What Legal Venue Means in South Carolina
Legally, “venue” refers to the proper county or judicial district where a lawsuit should be filed. The rules for determining the correct venue are established to ensure fairness and convenience for the parties involved. A case is usually brought where the defendant resides or where the event in question occurred, and South Carolina law outlines these procedures to prevent plaintiffs from choosing a court in an unrelated location to gain an advantage.1South Carolina Legislature. Code of Laws – Title 15 – Chapter 7 – Venue
However, the “SC Venue Crisis” describes a different problem. Coined by business owners, the term refers not to the location of lawsuits but to the economic pressures threatening their establishments—themselves venues for dining and entertainment. This usage diverges from the technical legal definition of venue.
Defining the South Carolina Venue Crisis
The South Carolina Venue Crisis refers to the escalating cost of liquor liability insurance, which threatens the financial stability of bars, restaurants, and music venues. Insurance premiums have become unaffordable for many small business owners, with rates doubling or tripling in a short period. Some businesses have seen annual premiums jump from around $20,000 to over $60,000, and in some cases exceeding $100,000, even for establishments with no history of claims.
This increase in operational costs has forced numerous local establishments to close permanently. Businesses like the Blind Horse Saloon in Greenville and the Old Rock Quarry Winery in Enoree cited the insurance crisis as the primary reason for their closure. The problem became so widespread that affected owners formed a coalition to advocate for legislative solutions.
Key Factors Behind the Venue Imbalance
The crisis stems from a combination of state law and legal doctrines that create a high-risk market for insurers. A main factor is a 2017 law mandating that any business serving alcohol after 5:00 p.m. must carry a $1 million liquor liability insurance policy.2Justia Law. South Carolina Code Section 61-2-145 (2024) – Liability insurance coverage required; on-premises consumption. This law followed an incident where an uninsured nightclub’s patron caused a fatal accident, leaving a city to cover the damages.
This insurance mandate is compounded by South Carolina’s application of “joint and several liability.” In alcohol-related cases, this rule historically allowed a plaintiff to recover all damages from a single business, even if it was only minimally at fault. For example, a bar that served one drink to a patron who later caused an accident could be held responsible for 100% of the damages.3Justia Law. South Carolina Code Section 15-38-15 (2024) – Liability of defendant responsible for less than fifty per cent of total fault; apportionment of percentages; willful, wanton, or grossly negligent defendant and alcoholic beverage or drug exceptions. This legal environment made underwriting policies in the state very risky for insurers.
Consequences for the Legal System and Residents
The closure of local businesses has a ripple effect on the state’s economy and culture. When an establishment shuts down, it results in job losses for staff and impacts the supply chain, from food distributors to local farmers. For residents, it means the loss of community gathering places, and the issue also discourages new entrepreneurs from opening establishments in the hospitality sector.
Within the legal system, litigation becomes concentrated on insured businesses, which are often seen as the only “deep pocket” for recovering damages. This can lead to liability being assigned based on the ability to pay rather than the degree of fault. The situation also limits market options for businesses and can increase consumer costs at the establishments that survive.
Ongoing Debates and Potential Adjustments to Venue Rules
In response to the crisis, affected business owners and associations like the South Carolina Restaurant and Lodging Association advocated for legal reform. Their focus was amending the state’s “joint and several liability” law to create a more predictable insurance market.
These advocacy efforts led to the passage of a compromise bill at the end of the 2024 legislative session. The new law requires a business to be found at least 50% at fault in a liquor liability case before it can be held responsible for the full amount of damages. It also ensures that a drunk driver must be included on the verdict form, allowing a jury to apportion fault. This reform is intended to ease the insurance burden on hospitality businesses across the state.4South Carolina Legislature Online. 2023-2024 Bill 533: SC Justice Act