In Canada, there have been a number of cases on host liability. I’m not sure the law is settled in this area, which leaves you with nagging doubts if you’re hosting this party.
A 1986 B.C. case dismissed all liability against the parents of a grad who hosted a party. One of the grads left with a buddy, who was under the influence. A crash resulted and the grad was injured. His suit against the hosts was unsuccessful.
In a 2001 B.C. case, the parents of an underage person hosting a drinking party had established a pattern of looking after these kids and ensuring no one drove after drinking. One of them did drive and wasn’t prevented from doing so. The hosts were held liable.
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The parents had created a dangerous situation by allowing minors to drink alcohol at their home and then drive on a public road. By not preventing the driving, they put members of the public at risk. It was a foreseeable risk that a young, intoxicated person behind the wheel might injure someone. The parents were on the hook for the injuries.
The hosts’ power of control over the person who suffers damage or who causes damage seems to be a significant factor in proving liability.
The more control you have, or attempt to exert, the higher the risk of being found liable.
Also, the more knowledge you have of their propensity to consume alcohol, the higher your risk of being tagged with liability.
That knowledge will be imputed to you, and the courts may expect you to take safeguards to prevent dangerous behaviour.
By doing what seems to be the right thing (taking keys away, making sure people don’t leave or drive), you may actually be taking on more risk of liability.
There’s no easy answer to your question and each case seems to depend on its particular facts. You bear the risk of that person’s conduct, even when it’s not your own child and you’re not in control of him.
I wouldn’t take the risk of hosting a party for underage drinkers.
