Dram Shop Liability: What is it and When is it Applicable?

Have you ever been involved in a car accident caused by a drunk driver? If so, you know firsthand how devastating the consequences can be. Drunk driving car accident attorneys specialize in helping victims of these tragic incidents obtain the compensation they deserve.

In this article, we will discuss dram shop liability, when it is applicable, and the damages that can be recovered in these cases.

What is Dram Shop Liability?

Dram shop liability is a legal doctrine that holds the commercial establishment that serves alcohol responsible for the actions of intoxicated patrons who cause harm to themselves or others. This liability extends beyond the establishment to include the individuals serving the alcohol.

The underlying principle behind dram shop liability is that establishments serving alcohol must act responsibly and avoid overserving patrons. By serving alcohol to individuals who are already visibly intoxicated, these establishments can create a dangerous situation and increase the risk of accidents or injuries.

Historically, dram shop laws were enacted to address the societal problems associated with excessive alcohol consumption. These laws sought to hold establishments accountable for the consequences of their actions and deter overserving.

Various types of entities can be held liable under dram shop laws, including:

• Bars and restaurants: These establishments are most commonly associated with dram shop liability, as they frequently serve alcohol to patrons.
• Liquor stores: While liquor stores may not serve alcohol on-site, they can still be held liable if they sell alcohol to individuals who are visibly intoxicated and subsequently cause harm.
• Social hosts: In some jurisdictions, social hosts (such as individuals who host parties at their homes) can also be held liable for the actions of intoxicated guests who cause harm.

When is Dram Shop Liability Applicable?

For dram shop liability to apply, several general conditions must be met:

1. Over-service: The establishment must have served alcohol to the intoxicated individual beyond the point of reasonable judgment.
2. Intoxication: The individual must have been visibly intoxicated at the time of service.
3. Causation: The establishment’s over-service must have been a direct and proximate cause of the harm caused by the intoxicated individual.

In terms of specific requirements related to overservice, courts often consider factors such as:

• Knowledge of intoxication: The establishment must have been aware or should have been aware of the individual’s intoxication. This can be demonstrated through evidence such as the individual’s behavior, speech, or appearance.
• Proximate cause: There must be a direct causal link between the establishment’s over-service and the harm caused by the intoxicated individual. This means that the harm would not have occurred but for the establishment’s negligence in serving alcohol.

While dram shop liability is a well-established legal doctrine, exceptions or defenses may be available to the liable party. These may include:

• Contributory negligence: If the injured individual’s actions contributed to their harm, their damages may be reduced.
• Assumption of risk: If the injured individual voluntarily assumes the risk of harm by consuming alcohol, they may not be able to recover damages.
• Acts of God: In rare cases, unforeseen events beyond the establishment’s control (such as natural disasters) may be considered a defense.

It’s important to note that dram shop laws vary from state to state in the United States. While the general principles outlined above are applicable in many jurisdictions, specific requirements and defenses may differ.

According to the Centers for Disease Control and Prevention (CDC), alcohol-related car accidents are a leading cause of death in the United States. In 2019, approximately 10,142 people died in alcohol-related car crashes. Dram shop liability laws play a crucial role in holding alcohol establishments accountable for the harmful consequences of over-service.

Damages Recoverable in Dram Shop Cases

In a dram shop liability case, victims can seek various damages to compensate for the harm caused. These damages may include:

• Medical expenses: This can cover the cost of treatment, rehabilitation, and any ongoing medical care.
• Lost wages: If the victim cannot work due to their injuries, they may be entitled to compensation for lost income.
• Pain and suffering: This includes physical pain, emotional distress, and loss of enjoyment of life.
• Punitive damages: In some cases where the establishment’s conduct was particularly egregious, punitive damages may be awarded as a punishment and to deter future misconduct. These damages are intended to punish the defendant and send a message to others.

Conclusion

Dram shop liability is a complex legal issue with significant implications for commercial alcohol vendors and social hosts. Understanding the principles of dram shop liability is essential for mitigating risk and promoting responsible alcohol consumption. By adhering to relevant laws and regulations and by implementing responsible alcohol service policies, individuals and businesses can help prevent tragic consequences associated with excessive alcohol consumption.