What is a Dram Shop Claim?

I’m David Holub, an attorney focusing on personal injury law in northwest Indiana.

Welcome to Personal Injury Primer, where we break down the law into simple terms, provide legal tips, and discuss personal injury law topics.

Today’s question comes from a caller concerned about a relative who was hit by a drunk driver who had no car insurance. She said the family knows the drunk was served at a local bar. She wanted to know if the bar could be sued for serving alcohol to someone who others at the bar said was clearly intoxicated before he got behind the wheel.

The victim of a drunk driver cannot only sue the drunk driver, but the victim may also have a civil claim for damages against the party that served alcohol to the drunk driver.

A lawsuit against the party who served alcohol to an intoxicated person is called a dram shop case.

In Indiana, there is a dram shop statute that imposes liability for furnishing alcohol to a visibly intoxicated person.

The statute provides that someone who sells, provides, delivers, or otherwise furnishes alcohol to someone else is liable for damages caused by that person’s impairment or intoxication only if the person who furnished the alcohol actually knew that the person to whom they furnished it was visibly intoxicated at the time.

The statute also provides that the intoxication of the person to whom the alcohol was furnished must have been a proximate cause of the injuries or damage suffered by the plaintiff.

Indiana Courts have confirmed that the requirement of actual knowledge of visible intoxication applies even to cases involving minors.

The statute applies to social hosts, such as family members, friends, or acquaintances, serving intoxicated people.

If a victim is successful in making a case under the dram shop statute, the victim may be able to recover expenses like medical bills, the costs of future medical care, and lost income and earning capacity, as well as compensation for subjective harm like pain and suffering and emotional distress, even if the drunk driver has no insurance.

As part of the licensing requirement to serve alcohol, the operators of a bar, restaurant, or other business must have a procedure in place to ensure that visibly intoxicated individuals are not served alcohol.

Often, it is difficult to prove that someone was already intoxicated when they were at the bar or other business seeking to be served more alcohol.

The proof was a bit easy in one case we handled years ago. The deceased drunk driver’s phone had a message on it from a bartender who served him. The message said: just checking that you made it home ok, Bob. You were pretty much out of it when I served you before locking up last night.

I hope you found this information helpful. If you are a victim of someone’s carelessness, substandard medical care, product defect, work injury, or another personal injury, please call (219) 736-9700 with your questions. You can also learn more about us by visiting our website at DavidHolubLaw.com – while there, make sure you request a copy of our book “Fighting for Truth.”