What is Dram Shop Liability?

What is dram shop liability in personal injury law?

Dram shop liability is a legal doctrine that holds bars, restaurants, and other establishments that serve alcohol responsible if they sell or serve alcohol to an obviously intoxicated person (or sometimes a minor) who then causes injury or death. The name comes from old “dram shops” that sold spirits by the dram, a small unit of measure.

• Holds alcohol sellers accountable for overserving.
  
  
• Applies to intoxicated patrons who cause harm.
  
  
• Often covers sales to minors.
  
  
• Based on state dram shop laws.
  
  

When does dram shop liability apply?

It applies when a licensed establishment serves alcohol to a visibly intoxicated person or a minor, and that person causes injury — often in a drunk driving accident. Laws vary by state, with some imposing strict liability and others requiring proof of negligence.

• Serving visibly intoxicated patrons.
  
  
• Selling to underage customers.
  
  
• Harm caused soon after alcohol service.
  
  
• Rules vary by jurisdiction.
  
  

Why is dram shop liability important?

It creates accountability for businesses that profit from alcohol sales and helps reduce the dangers of overserving. For victims, it provides an additional source of compensation beyond the intoxicated person who caused the harm.

• Encourages responsible alcohol service.
  
  
• Offers additional compensation sources.
  
  
• Deters overserving intoxicated people.
  
  
• Protects public safety.
  
  

Are there limits to dram shop liability?

Yes. Many states limit liability to cases where the service was to a visibly intoxicated person or a minor. Some states cap damages or require proof that the alcohol service was a direct cause of the harm.

• Service must be to intoxicated or underage patrons.
  
  
• May require direct causation proof.
  
  
• Some states cap damages.
  
  
• Laws vary widely.
  
  

Conclusion:
Dram shop liability laws protect the public by holding alcohol-serving businesses accountable when overserving leads to preventable tragedies.