Answer: Strict Liability. No. Decision for Whitehead. Owners and possessors of domestic
animals are subject to strict liability if they knew, or had reason to know, of an animal’s
18. Larry VanEgdom, in an intoxicated state, bought alcoholic beverages from the Hudson
Municipal Liquor Store in Hudson, South Dakota. An hour later, VanEgdom, while
driving a car, struck and killed Guy William Ludwig, who was stopped on his motorcycle
at a stop sign. Lela Walz, as special administrator of Ludwig’s estate, brought an action
against the city of Hudson, which operated the liquor store, for the wrongful death of
Ludwig. Walz alleged that the store employee was negligent in selling intoxicating
beverages to VanEgdom when he knew or could have observed that VanEgdom was
drunk. Decision?
Answer: Violation of Statute. Judgment for Walz. South Dakota forbids the sale of
intoxicating beverages to one in a drunken state. Courts may adopt the requirements of
19. The MacGilvray Shiras was a ship owned by the Kinsman Transit Company. During the
winter months, when Lake Erie was frozen, the ship and others moored at docks on the
Buffalo River. As oftentimes happened, one night an ice jam disintegrated upstream,
sending large chunks of ice downstream. Chunks of ice began to pile up against the
Shiras, which at that time was without power and manned only by a shipman. The ship
broke loose when a negligently constructed “deadman” to which one mooring cable was
attached pulled out of the ground. The “deadman” was operated by Continental Grain
Company. The ship began moving down the S-shaped river stern first and struck another
ship, the Tewksbury. The Tewksbury also broke loose from its mooring, and the two
ships floated down the river together. Although the crew manning the Michigan Avenue
Bridge downstream had been notified of the runaway ships, they failed to raise the
bridge in time to avoid a collision because of a mix-up in the shift changeover. As a
result, both ships crashed into the bridge and were wedged against the bank of the river.
The two vessels substantially dammed the flow of the river, causing ice and water to
back up and flood installations as far as three miles upstream. The injured parties