What Is Dram Shop Liability?

A car accident due to a drunk driver often has horrifying results. Significant injury and, sometimes, death can change the lives and futures of many people and families. It’s infuriating to know that someone got into a vehicle while intoxicated, but it’s further angering to realize someone else let that happen.

Dram shop laws impose liability on parties who contribute to drunk driving crashes. Each state has different dram shop liability laws, so discuss your situation with a car accident lawyer who can identify whether dram shop liability applies in your drunk driving accident case.

Dram Shop Overview

What is dram shop liability? A brief definition is that these laws enable a victim to not only take legal action against the drunk driver who caused the accident but also against the bar, nightclub, or another establishment that knowingly over-served a patron.

States have different requirements or limitations on dram shop liability. Take Missouri’s dram shop law, for example. This statute makes a commercial establishment serving alcohol and intoxicating liquor responsible for the injuries that an over-served person causes.

However, proving the establishment’s responsibility for your losses requires far more work than you might imagine. Not every bar that sold drinks to a drunk driver will share liability for a drunk driving accident.

Hire a car accident attorney to represent you in any case involving dram shop laws. Your lawyer will always examine all possible sources of compensation for you, including those under dram shop laws.

Determining if You Can Pursue a Dram Shop Claim

Seeking compensation from a commercial establishment after a drunk driving accident requires an investigation. It will need to determine where the person drank and the driver’s behavior or condition at the establishment. Your attorney will do this for you and consider these questions.

Does the commercial establishment qualify as a possible liable party?

To receive damages under most dram shop laws, your lawyer must first ensure you can hold the commercial establishment liable.

Some laws state that the location must:

  • Sell alcohol that causes intoxication
  • Sell that alcohol to patrons who drink it on the property
  • Have the ability to observe patrons before serving them alcohol

The goal of the law is to place responsibility on establishments that sell alcohol to patrons for profit. These businesses benefit from selling as many drinks as possible to increase profits, which can lead to over-serving many people. The dram shop law reduces that incentive by making bars and restaurants liable for certain losses if they over-serve customers who might then harm others.

The law has limits, though. For example, if a person went to a liquor store and bought a bottle of alcohol but didn’t drink it on the premises, then you cannot hold the liquor store liable for the losses that person causes. By contrast, in a bar, the staff usually directly serves a patron drinks, and the staff can observe that patron’s condition. The law holds them responsible for overserving that person to an obviously intoxicated patron.

The dram shop law also does not apply to social events in some states. In those states, if your friend hosts a party where half the people drink a large amount of alcohol, you cannot hold the social event host directly liable if a guest causes a drunk driving accident. This situation requires a professional legal evaluation.

Did they know about the risk?

Another component of dram shop liability is a recognized risk. For example, if the bar served a single drink to a patron and that person left the bar and caused an accident, dram shop liability may not apply.

Rather, to use this law, you must show clear evidence that the seller of the alcohol did one of two things:

  • They knew or should have known they were selling alcohol to a person that was under 21, or
  • They served alcohol to a visibly intoxicated person

Often, bar patrons do not have to pass out or fall off bar stools for staff to cut them off. The bar owner also does not test the blood alcohol level of their patrons to know whether they are over the legal limit. So, how do establishments know when they should stop serving someone alcohol?

While this is somewhat subjective, commercial establishments can (and should) consider several critical factors when recognizing when someone should not receive any more alcohol.

Here are a few examples:

  • The patron acts in some uncoordinated way
  • The patron cannot function normally
  • The patron was slurring words
  • The patron was very tired, which is an effect of alcohol on some people
  • The patron already drank enough drinks at the bar to make a reasonable person too intoxicated
  • The patron regularly drinks at that bar and regularly drinks to excess

A person’s blood alcohol level does not automatically determine intoxication at the bar or nightclub. Other evidence, from an eyewitness, for example, of intoxication at the establishment, can prove dram shop liability. Their high blood alcohol level is only partial evidence the bar allowed them to have too much to drink.

An investigation needs to prove that a particular bar or nightclub over-served a patron to the point where dram shop liability applies. This requires proof of visible evidence that should have warned the server not to continue to serve alcohol.

A car accident lawyer will know what evidence you need to prove dram shop liability. This might include eyewitness testimony, the driver’s credit card bills and receipts showing how many drinks they bought, video evidence from a bar’s security cameras, and more. Seek help immediately so your attorney can preserve the evidence you need to prove your claim.

What Happens if the Drunk Driver Is Under 21?

To consume alcohol in a commercial establishment in the United States, someone must be at least 21 years old. Liability under dram shop laws also attaches when a bar serves an underage person alcohol, and the patron causes a drunk driving accident.

Let’s say a teenager enters a nightclub and it serves them a drink. They don’t have any evidence of intoxication, but the server never checks their identification. Then, that teenager gets in a car and causes a severe accident. The commercial establishment that served alcohol to that teen can be responsible for some of the victim’s losses.

In this situation, the seller can be responsible if they did not see proof of the patron’s age or if they did see an obviously fake identification. If that is the case – and you can prove it – it can lead to the commercial establishment being responsible for the losses the driver caused.

How Do You Prove Dram Shop Liability?

Work with a car accident attorney in drunk driving accident cases.

Your lawyer will examine whether dram shop liability applies in your situation. If so, they can hold an establishment liable.

Your attorney will help you in several ways.

Determining where the person was drinking

A police report may contain this information if the law enforcement officer at the scene asked for and received it from the driver. That does not always happen. For example, they may say they were coming from their home or another location to dodge a DWI arrest. It may be possible to use witness statements or even to canvas the area to determine if the person was in a commercial establishment. Yet, this is a difficult process.

Determining the staff knowingly served alcohol to an intoxicated driver

The next challenge is showing that the location knew the party was intoxicated and still served them alcohol. Again, someone at the bar or the driver may admit this. The driver might mention they had too much to drink at a certain bar, and this can constitute key evidence.

Other times, it is not that simple to prove. Your car accident attorney knows how to find any information and evidence available to help prove your case. Do not give up if you suspect in any way that the drunk driver that caused your losses was over-served. Drunk driving accident victims regularly seek and obtain justice under dram shop laws. You just need to begin with the right legal representation.

How Can You Get Compensation for Your Losses After a Drunk Driving Accident?

Working with a car accident attorney who handles drunk driving claims can help you pursue full compensation for your losses. Their experience with dram shop claims can help you significantly with this complex process.

The first step is to pursue compensation from the drunk driver’s insurance company. You can hold their insurance company responsible for your economic and non-economic losses – up to the amount of coverage they have. Your attorney can handle working with the insurance company to ensure you get the largest possible settlement in your case.

Do not assume the insurance company will instantly pay you what you deserve. Often, a significant amount of negotiation is necessary in this process, and having a skilled attorney handling the claim process is paramount.

The second step is to seek out compensation from the commercial establishment with dram shop liability. This process takes time because more investigation and evidence are often necessary.

Your accident attorney will work closely with you to determine if this is an option by:

  • Reviewing the evidence of how the driver became intoxicated
  • Exploring the likelihood that the party was over-served by a bar
  • Talking to witnesses who were at the establishment with the drunk driver
  • Using expert witness analysis to get a better idea of what occurred
  • Gathering data available through video of the patron’s actions (sometimes, there may be posts on social media that may indicate that the patron was intoxicated)

By working through this process, your attorney will determine if you can seek compensation from the commercial establishment, as well as what evidence you need. Then, that process will involve filing a claim with the establishment’s insurance company and negotiating a settlement for your losses.

There is a chance your lawyer can obtain a fair settlement from the driver’s insurer and the bar’s insurer to cover your losses. However, if this does not happen, they might file a lawsuit and name both the drunk driver and the establishment as defendants. With litigation, your case may end up settling outside of court or go to trial.

Pursuing justice from drunk drivers is necessary to cover your losses, including medical bills, lost income, and pain and suffering.

Holding a business accountable when possible under dram shop liability also serves two important purposes:

  • It can increase the available insurance coverage to ensure you receive full compensation
  • It can send a message to bars that they can be liable for over-serving patrons, which makes our roads and communities safer

A Car Accident Lawyer Can Help After a Drunk Driving Accident and Injuries

Missouri Car Accident Attorney, Phillip J. Barkett

Phillip J. Barkett, Car Accident Lawyer in Missouri

Do not wait to seek help if you suffered injuries in a drunk driving crash. Instead, turn to a personal injury attorney with experience handling claims against drunk drivers.

They will know whether your state has dram shop laws and how they might apply in your case. Identifying a company or establishment’s liability can increase your compensation in many cases, so never overlook this.

You can set up a free consultation with an injury firm near you to start the process. You will learn your legal rights and get answers to your questions. Serious injuries due to a drunk driver can make life confusing, but the right law firm will relieve your stress and lead the way forward.