Commercial Liability under Dram Shop Laws

Dram shop acts hold bars liquor stores and other businesses responsible for selling alcohol to minors or intoxicated customers who then injure themselves or other people. The relief provided under dram shop laws are often the only compensation option for those suffering from injuries that resulted from the unlawful sale of alcoholic beverages by licensed retailers.

Traditionally, a dram shop was a business establishment where alcoholic beverages were sold by the dram, which is an English unit of measure that equals an eighth of an ounce. Initially, dram shop laws were intended to change the behavior of the individual drinker, but now they are intended to protect the public from the hazards of irresponsibly serving or selling alcohol to underage and intoxicated people.

State Dram Shop Laws Differ

Currently, most states have dram shop laws, although the laws differ vastly from state to state. Several of the states that do not have dram shop laws recognize some form of dram shop liability established through court decisions.

A dram shop violation may include any of the following acts of selling liquor:

• To an obviously intoxicated customer
• To a minor or underage person
• Without a license
• After hours

Common Elements of Dram Shop Laws

Although dram shop laws among the states vary widely, there are some common elements of liability. Generally, grounds to file a lawsuit includes the following:

• A server or seller of alcohol
• Served or sold alcohol to an intoxicated person or minor
• The intoxication was the proximate cause of the injury to an innocent third person or their property

Proximate Cause

Most dram shop laws require that an injured person who is suing a commercial establishment prove that the serving or selling of alcohol was a proximate cause of the injuries. This means it must be proven that without the act of serving or selling the alcohol, the accident would not have happened.

Compensation

Dram shop laws are designed to provide money to those injured as a result of indiscriminate sales or transfers of alcohol, but some laws contain limitations on the money that a person may receive. Awards for mental suffering and related intangible injuries are generally not recoverable unless the person can also show a physical injury.

Current trend

The trend toward enacting liquor liability legislation is strong. Special interest groups, such as Mothers Against Drunk Drivers (MADD), and the public continue to call for stricter action to be taken against the drunk driver. In addition, a national model dram shop law has been proposed. The proposed law, the Alcohol Beverage Retail License Liability Act, is designed to prevent intoxication-related injuries and to establish a basis for injured persons to get money for their injuries.

How a Lawyer Can Help

When you have injuries which are due, even in part, to the involvement of alcohol, ask a personal injury lawyer to examine your case to decide whether a dram shop claim should be pursued. A lawyer can help you determine if a dram shop violation played a role in your accident.

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