What Is a Dram Shop Claim?

It’s no secret that alcohol can impair judgment, especially when ingested in large quantities. When a bar, restaurant, or other establishment that provides alcohol knowingly serves a patron who is visibly intoxicated and the impaired patron causes an accident or injury, the establishment is legally responsible.
Dram Shop Laws

The Dram Shop Act is the national term for the laws that exist in 38 states that help protect victims who suffered an accident or injury because of the careless actions of an intoxicated person served by a similarly careless establishment. In these states, bars have a legal obligation not to continue serving patrons who demonstrate visible signs of intoxication. Dram shop laws refer specifically to establishments, but separate state laws may apply to social gatherings at individuals’ homes. The word “dram” comes from the term for a unit of measurement commonly used in the sale of alcohol in 18th century England.

Ideally, dram shop laws work in two ways. They help victims recover the compensation they deserve for their injuries. The threat of facing a dram shop also claim may deter establishments from over-serving patrons in the first place, ultimately preventing at least some accidents from happening.

Alcohol as a Contributing Factor

Alcohol-related accidents are tragic and preventable occurrences that have reached epidemic proportions in the United States. The Centers for Disease Control and Prevention (CDC) estimates that 30 Americans die each day from collisions in which alcohol-impaired driving was a factor. In 2010, the most recent year for which the CDC has data, drivers under the influence of alcohol killed 10,228 people. Currently, it is illegal for individuals with a 0.08 percent or higher BAC (blood alcohol content or blood alcohol concentration) to operate a motor vehicle.

Though phrases like “drinking and driving” and “driving under the influence” are common, not every dram shop claim involves a motor vehicle accident.