Dram Shop Laws

When most of us think of DUI arrests and drunk driving accidents, we don’t often think about whether people other than the driver are responsible. However, in many states, restaurant and bar owners may be held liable for injuries caused by customers they overserve.

The laws that hold businesses legally responsible for alcohol-related accidents are called dram shop laws. These laws vary by state, but generally, they hold owners of establishments that serve alcoholic beverages liable for injuries that intoxicated people cause. Of course, this liability only extends to patrons who drank alcohol while at the establishment.

Most dram shop laws allow victims of drunk driving accidents to sue bars and alcohol retailers after an alcohol-related incident. Here, we’ll explain how dram shop laws work and discuss which states have these laws. We will also briefly discuss social host liability, which is similar to dram shop laws but applies to private citizens.

If someone is suing you for damages sustained in a drunk driving car accident or other alcohol-related cause of action, contact a personal injury attorney right away.

What Is a Dram Shop Law?

Dram shop laws evolved from establishments in 18th-century Britain that sold gin by the spoonful (a “dram”). The courts enforce these laws through civil actions. Dram shop laws allow DUI victims and their families to file a personal injury case against alcohol vendors and retailers.

Which States Have Dram Shop Laws?

Not all dram shop laws are the same. They can differ quite a bit. States that have dram shop laws may define specific terms in their statutes differently. Words such as “guest,” “patron,” and “retailer” can carry different meanings.

Most courts apply the obvious intoxication test. This test evaluates whether a retailer knew or should have known that a patron was intoxicated to the point where more alcohol would cause danger to that person or others.

As of 2025, 42 states and the District of Columbia have dram shop laws in place. The scope of these state laws varies.

States without dram shop laws include:

• Delaware
• Kansas
• Louisiana
• Maryland
• Nebraska
• Nevada
• South Dakota
• Virginia

Note: Liability claims for retailers that serve underage patrons may still apply even without full dram shop laws. (See the DUI Laws and Resources section to learn more about the DUI laws in your state.)

Who Can Be Held Liable?

Under dram shop laws, the primary parties held liable are businesses that sell or serve alcohol. This includes bars, restaurants, nightclubs, taverns, liquor stores, and other licensed alcohol retailers.

However, just because a restaurant, bar, or liquor store owner may be liable under a state’s dram shop laws doesn’t mean they will be the only defendant in a dram shop case. In fact, many dram shop claims involve multiple defendants.

Whether a plaintiff can name multiple parties in a dram shop lawsuit depends on state law. However, in most cases, the plaintiff can pursue damages from the following parties:

• The dram shop (restaurant, bar, club, etc.)

• The intoxicated patron (usually a drunk driver)

• Other restaurants, bars, or clubs that contributed to the intoxicated person‘s alcohol consumption

• The driver of another motor vehicle in a multi-car accident

• Individual employees who served alcohol to the patron (allowed in some states, such as Texas, Illinois, and Montana)

Your personal injury lawyer will name all possible defendants in your personal injury lawsuit where legally appropriate. This does not guarantee that you’ll receive damages from each defendant. However, it does increase your chances of collecting the highest amount of compensation.

Who Can File a Dram Shop Claim?

Anyone who suffers injuries at the hands of an intoxicated person has the option of filing a dram shop claim. Of course, to succeed in this type of claim, you must prove that the defendant (dram shop) overserved the person who caused the accident.

Specifically, the following people may have standing to file a dram shop lawsuit:

• Victims in a DUI car accident
• Individuals who suffer injuries due to an intoxicated person‘s negligence
• The family of a person who dies in a fatal DUI crash (wrongful death claim)
• An individual who suffers injuries in a physical attack by a drunk patron (such as in a barroom brawl)
• The parent(s) of a child who was in the car with an intoxicated driver during a drunk driving accident

Note that some states, such as Illinois, do not allow the intoxicated patron to sue the establishment for their own injuries. The laws focus on protecting third-party victims.

Since state laws regarding who can file a dram shop claim differ, it’s essential that you meet with an experienced personal injury attorney before filing your claim.

Proving Fault in a Dram Shop Case

It’s not easy to prove fault in a dram shop case. Generally, plaintiffs must show that:

• The establishment served alcohol to someone who was visibly intoxicated
• And that doing so led to injuries

However, several challenges make this difficult. For example, how can bartenders know when a customer is drinking on an empty stomach or has a low tolerance for alcohol? It is also difficult to prove that the patron wasn’t drunk before entering the defendant’s establishment.

Every state specifies, either through statute or case law, the elements a plaintiff must prove in a dram shop case. Under the Illinois Dram Shop Act, for example, the plaintiff must demonstrate the following things to prevail at trial:

• The defendant engaged in the sale of alcohol to the intoxicated patron.
• A third party sustained injuries (the intoxicated patron cannot sue for damages under the dram shop laws in the State of Illinois)
• The at-fault driver was the proximate cause of the victim’s injuries (meaning the driver’s actions directly caused the harm)
• Intoxication was at least one of the causes of the third party’s damages

Special Cases: Serving Alcohol to Minors

In addition to imposing liability on establishments for serving alcohol to intoxicated patrons, dram shop laws also hold establishments liable for serving people under the legal drinking age. An establishment that serves alcohol to someone they knew or should have known was a minor can be held liable for any injuries that result from an alcohol-related accident.

In some states, the bar or restaurant may be liable for injuries caused to the minor and third parties. This means that a minor can sue the store/retailer for damages for their own injuries.

Unlike cases involving people over the legal drinking age, the plaintiff does not have to prove that the minor was visibly intoxicated. In fact, even if the minor used a fake ID to obtain alcohol from the defendant, the establishment may still be liable for damages.

To avoid dram shop liability, the establishment must prove that it exercised due diligence to determine the underage customer’s age and the validity of their identification. If the jury doesn’t believe the defendant exercised such diligence, it may hold them liable for any injuries that result from an alcohol-related accident.

Do Dram Shop Laws Apply to Private Events or Social Hosts?

Generally, dram shop laws only apply to businesses that sell or serve alcohol. However, many states have similar laws covering “social host liability.” These laws apply to private citizens who host parties or other social events where people will be drinking alcoholic beverages.

In states that have these laws, individuals who allow their guests to drink alcohol may be liable for any accidents their guests cause. For example, if Joe and Joan Smith host a barbecue and one of their guests drinks enough alcohol to put them over the legal limit and causes a DUI car accident, the accident victims can sue the Smiths for damages.

The rationale behind these laws is that social hosts have a responsibility to ensure that their guests do not drink and drive. They can accomplish this in various ways. For example, the Smiths from the example above can take their guests’ car keys and only return them to sober guests at the end of the party.

Another option for social hosts is to cut off any guests who appear to be intoxicated. For instance, the Smiths can enforce a two-drink rule for all guests, or at least those who are driving.

It’s important to note that the social hosts will only be liable for injuries directly related to their guests’ intoxication. If one of the partygoers is sober and runs a red light, causing a fatal accident, the social hosts will not be liable. However, if the driver’s blood alcohol concentration (BAC) is over the legal limit, the hosts could potentially be held responsible.

What Kind of Damages Can Be Recovered?

The damages in a dram shop law case are similar to the damages in any other personal injury lawsuit. Typically, the plaintiff in these cases will demand economic and non-economic damages. They must demand specific damages when they file their initial complaint.

Economic damages include things you can put a dollar value on, such as:

• Medical bills
• Lost wages
• Lost future income

You can also demand non-economic damages. These represent losses that you cannot quantify using receipts and include the following:

• Pain and suffering
• Emotional distress

In some cases, you may also be able to seek punitive damages. These are designed to punish particularly egregious conduct rather than compensate for losses. However, many states limit or cap the amount of punitive damages.

Depending on where you live, there may be limits to how much you can recover in a personal injury case. For example, Alaska caps the amount a person can receive in punitive damages at $500,000 or three times their compensatory damages, whichever is lower.

Typically, when a plaintiff wins a lawsuit against both an alcohol vendor and an intoxicated driver, the compensatory damages are divided between the two defendants.

What Defenses Can a Business Raise?

If an accident victim names a business in a personal injury lawsuit, the company’s attorney will put on a strong defense to help it avoid liability.

The following defenses may be available in a dram shop claim:

• The patron wasn’t visibly intoxicated
• The patron consumed alcohol elsewhere
• There was a break in causation (other intervening factors)
• Compliance with state training requirements

Your personal injury attorney will consider these defenses when filing your claim.

Time Limits for Filing a Claim

Every state has laws that dictate the timeframe within which a person must file a personal injury claim. We refer to these laws as “statutes of limitation.” The statute of limitations for personal injury varies by state. In most states, the filing deadline is anywhere from one to six years.

The clock starts ticking on the date of the accident or injury. If a victim doesn’t file their claim before the statute of limitations period expires, the court will dismiss their claim, and they’ll lose their chance of pursuing damages.

Have More Questions About Dram Shop Laws? Talk to a Lawyer

You may be able to bring a personal injury claim against a tavern or liquor store for injuries you suffer at the hands of an intoxicated individual. A personal injury attorney will review your case and let you know how best to proceed. They’ll also ensure that you file your claim within the statute of limitations.

If you’re a business owner or individual facing a dram shop claim, a personal injury defense attorney can help you understand your legal options and build a strong defense. Contact an experienced attorney who can protect your rights and interests.