In the U.S., the term dram shop refers to bars, taverns, and other businesses that sell alcoholic beverages. A Dram Shop Act holds such businesses liable if they serve liquor to a person who is obviously intoxicated, or to a minor, who then causes injuries to another person. To explore this concept, consider the Dram Shop Act definition.
A dram is a unit of either mass or volume in the apothecaries’ system of measurement. The term dram shop was coined to describe any place where spirits were sold to the customers by the dram, which is equal to 1/8 of a fluid ounce. Laws regarding dram shops date back to the early 19th century, having the goal of protecting the public from hazards caused by intoxicated people.
The Dram Shop Act actually refers to the laws of each state which govern civil liability when damages, injuries, or deaths are caused by visibly intoxicated individuals who were served alcoholic drinks in a bar, tavern, or other establishment. While these laws vary slightly by state, they generally allow victims to sue the establishment, which had a duty to stop serving alcohol to the drunk patron.
For example:
John goes out drinking with his friends, at the corner bar. The friendly waitress happily served them drinks long after they became falling-down drunk, until they left the bar at nearly 2 a.m. John, who got in his car to drive home, hit a pedestrian, causing critical injuries. John is arrested and charge with driving under the influence.
The victim has the right to file a civil lawsuit against John for his injuries. In addition, however, the victim may be able to sue the bar, if he can prove that the staff continued to serve him after he became visibly intoxicated.
There are certain facts that are likely to lead a court to conclude that the establishment has been negligent, and is liable for injuries caused by a patron. These include situations in which the establishment served or sold alcohol to:
There are two main types of dram shop cases. A first party dram shop case is one in which the person injured is the individual who was sold alcoholic beverages by the establishment, and suffered some type of injury as a result of his intoxication. Most states do not allow first party dram shop cases. The exception to this is the selling or serving of alcohol to minors.
A third party dram shop case is one in which a third party is injured by an intoxicated person after an establishment served or sold him alcohol when he was obviously drunk. This is the most common dram shop case brought in civil courts across the U.S.
In October, 2010 Matt and Meredith Eastridge were pulling away from the ATM when their car was struck by a drunk driver going in excess of 100 mph. Matt and Meredith were both seriously injured, and the couple’s unborn baby was killed in the accident. The driver, David Huffman, had just left a local bar, where he had been served at least 10 drinks in a two-hour time period. Huffman’s blood alcohol content was three times the legal limit at the time of the accident.
Although the bar claimed they had never been cited for alcohol-related infractions, and that they are very careful about not serving alcohol to minors, or to patrons who were visibly intoxicated, the jury thought differently. The jury awarded the couple $1.7 million, on the basis that, even if Huffman did not physically appear to be drunk, they should have known that serving that amount of alcohol to a single person in so short a time period would result in intoxication.