What Are Dram Shop Laws?

Have you heard the term dram shop? What are dram shop laws? Dram shop laws allow people who are injured by an intoxicated person to sue the business or other alcohol provider if the alcohol was improperly provided. In Texas, dram shop claims are primarily managed by the Texas Alcoholic Beverage Code.

It's important to realize that Texas law doesn't automatically make a bar, restaurant, or other alcohol provider responsible when a customer drinks and then causes an injury. Instead, the Texas Dram Shop Act establishes specific requirements for holding an alcohol provider liable.

Understanding those requirements is important for anyone involved in an accident involving an intoxicated driver, whether you are an injured person, an alcohol provider, or someone facing a related criminal charge. Sparks Law Firm can also help with questions like how much is an ignition interlock device?

What Is a Dram Shop Law?

A dram shop law is a law that can hold an establishment that sells alcohol, like a liquor store, or other commercial establishments that sell alcohol, like a bar, liable for injuries caused by an intoxicated person in certain circumstances.

In most cases, dram shop liability laws address situations where alcohol is provided to someone who already has engaged in excessive alcohol consumption, or someone who is not the legal drinking age.

How Does the Texas Dram Shop Act Work?

Texas Alcoholic Beverage Code Section 2.02 provides that providing, selling, or serving alcohol can support a statutory cause of action when two important conditions are established.

First, at the time the alcohol was provided, it must have been apparent to the provider that the person receiving the alcohol was obviously and visibly intoxicated to the extent that the person presented a clear danger to themselves and others.

Second, the intoxicated patron must have been a proximate cause of the damages suffered by the person bringing the claim.

These requirements are important because Texas does not impose automatic liability simply because a business served alcohol to someone who later became intoxicated and caused an accident.

Who Can Be Held Liable Under Texas Dram Shop Laws?

The Texas Dram Shop Act can apply to a person or business that provides, sells, or serves alcoholic beverages when the statutory requirements are satisfied.

This can include businesses such as bars and restaurants, as well as other licensed or permitted alcohol providers depending on the circumstances.

The law also addresses alcohol provided to minors. Under Section 2.02, an adult age 21 or older can be liable for damages proximately caused by the intoxication of a minor under 18 when the adult knowingly served or provided alcohol that contributed to the minor’s intoxication, or knowingly allowed the minor to be served or provided alcohol on premises owned or leased by the adult. For more information, these criminal lawyers in Fort Worth TX may be able to help.

What Does “Obviously Intoxicated” Mean?

One of the most important issues in a Texas dram shop case is whether the person receiving the alcohol was obviously intoxicated when the provider served or provided the alcohol.

It is not enough to show that the person eventually became intoxicated. The focus is on what was apparent to the provider at the time the alcohol was provided.

Evidence may include observations of the person's behavior, speech, coordination, appearance, or other circumstances indicating intoxication.

A recent Texas Supreme Court case illustrates why this requirement matters. In Raoger Corp. v. Myers, the Court considered whether evidence was sufficient to create a fact issue about whether a restaurant could have recognized that a patron was obviously intoxicated when alcohol was served. The Court ultimately reinstated summary judgment for the restaurant, concluding that the evidence did not establish that the patron's intoxication was apparent at the restaurant.

Why Is Proximate Cause Important?

The second major requirement is causation. Texas law requires the recipient’s intoxication to be a proximate cause of the damages.

This means a claimant generally must connect the intoxication to the injury or property damage being claimed. For example, if an intoxicated driver causes a collision, the claimant may argue that the driver's intoxication was a proximate cause of the resulting injuries.

The provider's decision to serve alcohol alone is not enough. The statutory requirements must be established, including the required connection between the recipient's intoxication and the damages.

Can You Sue a Bar for a Drunk Driving Accident?

Potentially, but the circumstances matter. If an intoxicated driver causes a crash, an injured person may have a claim against the driver. Depending on the evidence, the injured person may also have a potential dram shop claim against an establishment or other provider that supplied the alcohol.

To pursue a Texas dram shop claim, however, the claimant must satisfy the requirements of the Texas Dram Shop Act.

Evidence about how the driver appeared when alcohol was provided can therefore become extremely important. A blood alcohol concentration measured later, for example, does not necessarily establish how the person appeared at the time the alcohol was served.

Can a Restaurant Be Sued Under Dram Shop Laws?

A restaurant can potentially face a dram shop claim if the statutory requirements are satisfied. Selling alcohol and a customer's later accident do not automatically establish liability. The claimant must address whether the customer's obvious intoxication was apparent when the alcohol was provided, along with the other requirements of the Act.

What Evidence Is Used in a Dram Shop Case?

Evidence can be critical in determining whether a dram shop claim can succeed.

Potential evidence may include surveillance footage, receipts, sales records, witness statements, employee testimony, photographs, police reports, medical records, and information about the timing and amount of alcohol consumed.

The condition and behavior of the person at the establishment may be particularly important because Texas law focuses on whether obvious intoxication was apparent when the alcohol was provided.

Evidence from after the person left the establishment can also be relevant, but it may not by itself prove how the person appeared when the alcohol was served.

Are Dram Shop Claims the Same as Criminal Charges?

No. A dram shop claim is generally a civil matter involving potential liability for damages. It is separate from a criminal prosecution against an intoxicated driver.

For example, a person accused of DWI may face criminal charges brought by the state. Separately, someone injured in an accident may pursue a civil claim against the driver and, when the statutory requirements are met, an alcohol provider.

Can a Bar Be Criminally Liable for Serving an Intoxicated Person?

Texas law also contains criminal provisions concerning the sale or delivery of alcoholic beverages to certain people. For example, Texas Alcoholic Beverage Code Section 101.63 provides that a person commits an offense if, with criminal negligence, the person sells an alcoholic beverage to an intoxicated person or habitual drunkard. The statute also addresses certain commercial deliveries to intoxicated people.

That criminal provision is separate from the civil Dram Shop Act. Whether a particular business or individual faces criminal consequences depends on the facts and applicable law.

What Should You Do After an Accident Involving Alcohol?

If you were injured in an accident involving an intoxicated driver, preserve information about the collision and the driver's conduct. Police reports, medical records, photographs, witness information, and other documentation may become important.

If you believe alcohol was provided to the driver before the accident, information about where the person drank and what happened there may also be significant.

If you are an alcohol provider facing a claim, preserve relevant records and avoid making assumptions about liability before the evidence has been reviewed.

Because dram shop cases involve specific statutory requirements, getting legal advice early can help identify what evidence is important.

How Does a Dram Shop Claim Affect a DWI Case?

A dram shop claim and a DWI prosecution are separate, but they can arise from the same incident.

If someone is arrested for DWI after an accident, the criminal case may involve issues such as the traffic stop, field sobriety testing, blood or breath testing, and whether the prosecution can prove the elements of the offense.

A dram shop claim, by contrast, may focus on whether an alcohol provider violated the Texas Dram Shop Act and whether the intoxicated person's conduct caused the claimant's damages. For example, a bar serving alcohol to visibly intoxicated individuals could be legally responsible if one of those people cause an accident.

Because these cases have different purposes and legal standards, a person involved in both should understand the distinction. Anyone who is in a situation where either of these incidents may occur should reach out to a skilled criminal defense lawyer. They can help with questions like can i renew my green card with 2 dui?

Reach Out to Sparks Law Firm

Dram shop laws can become complicated when an alcohol-related accident leads to injuries, property damage, civil claims, or criminal charges. Texas law requires specific elements before an alcohol provider can be held liable under the Dram Shop Act.

If you are facing a DWI or other criminal charge connected to an alcohol-related accident, Sparks Law Firm can help you understand the criminal allegations and the legal options available to you. Contact Sparks Law Firm to discuss your situation with a Texas criminal defense attorney. Free consultations are available.