Dram Shop Liability: Bar, Restaurant, and Individual Exposure for Over-Serving Customers and Guests

When someone under the influence of alcohol injures a person due to intoxication, the injured person may have a claim against whoever provided the alcohol: the server, the owner/operator of an establishment, and even the host of a private party. Statutes implementing this liability--dram shop laws--exist to fill a hole where the common law does not provide relief to third parties. The intoxicated person, however, has no cause of action.

Dram shop relief is statutory, so counsel must be familiar with the details of the statutes involved. Not only does the injured person have a cause of action, but third parties, such as spouses or children, may also have claims. Counsel must recognize the nuances in the laws and how courts interpret them, including the impact of whether the intoxicated person was of legal drinking age; the level of scrutiny applied to how the alcohol provider determines drinking age; and the determining factors in deciding whether the server should have refused to serve a patron.

Plaintiff and defendant counsel both focus on allegations that will trigger exclusions and non-covered items in insurance policies. For example, statutes will require claims of "willful" actions, and many insurance policies do not provide coverage for such intentional acts.

Listen as the panel, from both the plaintiff and defendant bar, explores these issues and provides insight into pursuing and defending claims under these statutes.

1. Background and content of dram shop statutes
2. Statutory analysis and construction
   1. Standard of care
   2. Underage drinkers
   3. Private hosts
   4. Role of common law defenses
3. Insurance coverage issues

The panel will review these and other critical matters:

• Theories and bases of liability under dram shop statutes
• Procedures to comply with dram shop statutes
• Defenses to liability
• Recovery and insurance issues