Dram Shop - Differences Among U.S. State Laws

Differences Among U.S. State Laws

Serving alcohol to minors is illegal in all 50 states. Many states impose liability on bars for serving minors who subsequently injure themselves or others; deterring minors from being served alcohol. Thus in states like Texas and New Jersey, minors can sue a drinking establishment for their own injuries sustained while intoxicated. In other states, dram shop liability only extends to serving the "habitually intoxicated."

The majority of states allow for recovery when the defendant knew (or should have known) the customer was intoxicated. Some states have attempted to address this problem through more exacting tests. Missouri's recently revised dram shop law requires proof that the party demonstrates "significantly uncoordinated physical action or significant physical dysfunction." In Texas, a patron must be so obviously intoxicated that he presents a clear danger to himself and others.

On the other hand, in Massachusetts, the state's highest court has held that a bar could be sued where a patron exhibiting "drunk, loud and vulgar" behavior was determined to be "visibly intoxicated," Cimino v. The Milford Keg, Inc., 385 Mass. 323 (1981). In Cimino, evidence showed that the intoxicated patron had been served six or more White Russians by the Milford Keg bar. The patron left the bar, arriving at another bar about fifteen minutes later "totally drunk," holding a White Russian. The next bar that he went to refused to serve him. Shortly thereafter, the intoxicated patron lost control of his car, drove on a sidewalk, and killed a pedestrian.

Under Illinois' dram shop law, plaintiffs can recover after demonstrating that:

1. alcohol was sold to the patron by the defendant;
2. damages were sustained by the plaintiff;
3. the sale of alcohol was the proximate cause of the intoxication; and
4. intoxication was at least one cause of the plaintiff's damages.

Proximate cause includes the requirement that the dram shop must have been able to foresee that its actions could cause injuries to third parties, but this is true for any establishment that serves (sells) alcohol. One Illinois court allowed a lawsuit against a company that dropped off self-serve barrels of beer at a union picnic.

Some states (such as New Jersey) impose liability on social hosts as well as commercial establishments. This related area of the law is known as social host liability.

Different states' dram shop acts also differ as to whether a person who becomes intoxicated and injures themselves has a cause of action against the establishment that served them. Some states, such as New Jersey, will allow such a cause of action but will instruct the jury to take the intoxicated person's own negligence into account. Other states, such as New York, will not allow a person who injures themselves to bring a lawsuit against the bar that served them, but if that person dies will allow such a person's children to sue the drinking establishment for loss of parental consortium.