What Are Dram Shop Laws?

“Dram shop laws” refer to the civil liabilities of individuals and establishments that serve alcoholic beverages. Every state has its own version of dram shop laws, with different provisions and rules for servers. Dram shop laws may come into play in cases involving an intoxicated individual, such as a drunk driver. In some circumstances, accident victims may be able to name the “dram shop” (or social host) as a defendant in a personal injury claim. Understanding the dram shop laws in Texas can help you if your case involves an intoxicated party.

Dram Shop Liability in Texas

“Dram shop laws” came about to hold servers of alcoholic beverages liable for injuries their patrons cause. It is an establishment’s responsibility not to over serve patrons or to contribute to a subsequent alcohol-related accident as much as reasonably possible. The Alcoholic Beverage Code, Title 1, Chapter 2, contains the content of Texas’ dram shop laws. According to this law, the “providing, selling, or serving” of an alcoholic beverage may become the basis of a statutory cause of action if certain elements surround the incident. These elements are as follows:

1. The provider reasonably should have known the individual receiving the alcoholic beverage was obviously intoxicated to the extent that he or she presented a danger to him/herself and others. The individual’s intoxication must have been apparent.
2. The intoxication of the individual receiving the beverage was the proximate cause of the damages suffered.

Texas may also hold social hosts liable for injuries an intoxicated person causes, not just bars or dram shops. If the intoxication of a minor under the age of 21 caused the damages, an adult 21 years or older may be liable if the adult is not a parent, guardian or spouse, and if the server knowingly provided the beverage to the minor or allowed someone else to serve the minor. In other words, a social host may be liable for damages a drunken minor causes if the host knew or should have known that the person was underage.

Third Party Responsibility for Drunken Parties

Dram shop laws came about from the need to hold someone responsible for the intoxication of an individual who goes on to injure others. While dram shops and social hosts do not bear the responsibility of making sure no one gets drunk, they must not serve someone who is visibly intoxicated and presents a danger. Serving this person is an act of negligence that could lead to liability if the person then drives drunk, assaults someone, or causes other harms because of his or her drunkenness.

Accident victims may be able to recover damages against an establishment or social host in a personal injury lawsuit if the defendant’s actions qualify under Texas’ dram shop laws. Victims may name the dram shop as a defendant in addition to the drunken individual and/or other parties. Dram shop laws are particularly helpful when the drunken party does not have the means to pay a compensation award. An establishment such as a bar or restaurant will have insurance that can pay the award. For more information about Texas’ dram shop laws and how to prove your case, talk to an attorney.