5.1 Dram Shop Laws and Liability
Key Takeaways
- Dram shop laws hold establishments and servers liable for damages by intoxicated customers
- Only 8 states have no dram shop liability (DE, KS, LA, MD, NE, NV, SD, VA)
- Individual servers can be personally sued in many states
- Liability applies when serving minors or visibly intoxicated persons who cause harm
- Third-party (others injured) and first-party (intoxicated person injured) liability differ by state
Understanding your legal responsibilities is critical. Alcohol servers and establishments can face serious consequences for improper service.
What Are Dram Shop Laws?
Dram shop laws hold alcohol-serving establishments (and sometimes individual servers) liable for damages caused by intoxicated customers.
"Dram" = An old term for a small drink of alcohol
Who Can Be Held Liable?
| Party | Can Be Liable? |
|---|---|
| The establishment | Yes - in most states |
| The server | Yes - in many states |
| The manager | Yes - often |
| The owner | Yes - often |
| The bartender | Yes - in many states |
When Liability Applies
You/the establishment can be held liable if:
- You served alcohol to a minor (under 21)
- You served alcohol to a visibly intoxicated person
- That person then caused harm to themselves or others
Types of harm that create liability:
- Car accidents (most common)
- Assaults
- Property damage
- Injuries from falls
- Death
States WITHOUT Dram Shop Liability
Only 8 states do not have dram shop laws:
- Delaware
- Kansas
- Louisiana
- Maryland
- Nebraska
- Nevada
- South Dakota
- Virginia
Note: Even in these states, servers can face criminal charges for serving minors.
Third-Party vs. First-Party Liability
Third-Party Liability:
- Victim is someone ELSE injured by the intoxicated customer
- Example: Drunk driver hits another car - injured party can sue the bar
- Available in most states
First-Party Liability:
- Victim is the INTOXICATED PERSON themselves
- Example: Intoxicated person trips and injures themselves
- Limited or not available in many states
Social Host Liability
Social host laws extend liability to private individuals hosting parties:
- If you serve alcohol at your home
- A guest becomes intoxicated
- That guest causes harm
- You may be liable
Some states have social host liability, especially for serving minors at private parties.
What are dram shop laws?
In how many US states are there NO dram shop liability laws?
Can individual servers (not just the establishment) be held personally liable?