What is Dram Shop Liability?
Dram shop liability refers to the body of law governing the liability of businesses that serve alcohol for injuries caused by their patrons. Dram shop laws, also known as dram shop acts, impose potential liability on businesses that sell alcohol for injuries caused by their patrons. This includes death or personal injury to others.
These laws are intended to protect the general public from the hazards of serving alcoholic beverages to minors and intoxicated people. Dram shop liability can result in civil actions against the establishment that served or sold the alcohol. In Missouri, dram shop laws allow recovery for injuries caused by an intoxicated person who was over served at a bar or nightclub. 
Dram shop laws in Missouri are designed to protect the public from the hazards of excessive alcohol consumption. By holding businesses responsible for over serving patrons, dram shop laws aim to reduce alcohol-related harms and promote responsible serving practices.
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Understanding the Dram Shop Act
Missouri’s dram shop law provides liability for commercial establishments that over serve intoxicated persons. Commercial establishments that sell intoxicating liquor by the drink for consumption on the premises may be liable for injuries caused by an intoxicated person. The dram shop law aims to hold businesses responsible for over serving patrons. The law does not apply to stores that sell alcohol in bulk or social hosts who serve alcohol for non-profit purposes. Also, it does not create social host liability.
Elements of a Dram Shop Case
Missouri statute 537.053 is Missouri’s dram shop law. It says a bar cannot be held liable for injured inflicted by intodicated patrons unless the injured person can prove by clear and convincing evidence the bar knew or should have known liquor was served to a person under the age of 21, or, knowingly served liquor to a visibly intoxicated person.
In many instances, these cases involve alcohol related car crashes, where the intoxicated individual causes injuries, fatalities, or property damage. The plaintiff must show that the establishment knew or should have known that the person was intoxicated. The law requires clear and convincing evidence of the seller’s liability. Liability is determined on a case-by-case basis. The plaintiff must also prove that the intoxicated person’s actions were the proximate cause the injury or damage.
Definition of a Visibly Intoxicated Person
RSMO 537.053(3) defines “visibly intoxicated” as a person who is inebriated to such an extent that the impairment is shown by significantly uncoordinated physical action or significant physical dysfunction. The statute further says a person’s blood alcohol level is not conclusive proof of visible intoxication, but is admissible to prove that fact.
In order to win a dram shop case, the plaintiff must prove the server should have known that the person was intoxicated based on their behavior. Proving visible intoxication can be challenging and requires an experienced attorney. Often it is helpful to get witness statements from others who can attest to the person’s slurred speech and other signs of intoxication.
Defenses to Dram Show Act Claims
A bar can defend a dram shop claim by showing it demanded and was shown official identification that appeared to be genuine showing a minor was at least 21 years old. Another defense a bar can assert is that the person did not appear visibly intoxicated.
Damages and Compensation in Dram Shop Cases
Victims of drunken behavior can seek damages from both the establishment and the intoxicated individual. Establishments must verify the legal drinking age of their customers to avoid severe penalties and civil liabilities if they serve someone under the legal drinking age. Damages can include medical expenses, lost wages, and pain and suffering.
In some cases, punitive damages may be available to punish the defendant for egregious actions.
The goal of dram shop laws is to compensate victims for their losses and to deter businesses from over serving patrons.
Historical Context of Dram Shop Laws
Dram shop laws have a rich history that dates back to the 18th century in the United States. The term “dram shop” originated from the British practice of serving alcohol in small units called “drams.” These early dram shop laws were born out of the temperance movement, which sought to curb excessive alcohol consumption and mitigate its associated problems. The primary goal was to hold businesses accountable for serving alcohol to individuals who were already intoxicated or to minors, who then went on to cause harm to themselves or others. Over the years, dram shop laws have evolved, incorporating various provisions and exceptions. However, their core purpose remains steadfast: to promote responsible alcohol service and reduce alcohol-related harms. By understanding the historical context, we can better appreciate the importance of these laws in fostering a safer drinking environment and reducing the number of drunk driving accidents.
Impact of Dram Shop Laws on Businesses
Dram shop laws significantly impact businesses that sell or serve alcohol, creating a liability risk for establishments that fail to comply with their provisions. To mitigate this risk, businesses must ensure that their employees are well-trained to identify and refuse service to visibly intoxicated patrons or minors. Failure to adhere to these regulations can result in costly lawsuits and damage to the establishment’s reputation. Additionally, businesses may face increased insurance premiums and regulatory compliance costs. However, by promoting responsible alcohol service, dram shop laws can help businesses reduce their liability risk and contribute to a safer and more responsible drinking culture. Ultimately, these laws encourage establishments to prioritize the well-being of their patrons and the community.
Filing a Claim and Notice Requirements
In Missouri, victims must inform the establishment that they intend to seek compensation under dram shop liability. The notice will typically allege the bar knowingly served intoxicating liquor to a third person who then caused personal injury or wrongful death to a third party. The bar will then let their insurance company know of the civil liability claim and it will then investigate and make a determination whether its insured is legally responsible for the personal injury. If a lawsuit is filed, the insurer will assign defense counsel to represent the bar.
Exemptions from Dram Shop Law
Social hosts have different responsibilities depending on the state they live in, and in Missouri, they are exempt from liability in dram shop claims. The law specifically focuses on those who sell alcohol to the general public, not private gatherings. Another exception is an establishment that sells alcohol in sealed containers for later consumption, like liquor stores and grocery stores.
Case Studies and Precedents
Several notable case studies and precedents have shaped the landscape of Missouri’s dram shop law. A pivotal case is Coomer v. Kansas City Royals Baseball Corp., 437 S.W.3d 184 (Mo. Sup. Ct. 2014), where the Missouri Supreme Court highlighted the importance of establishing clear and convincing evidence when proving dram shop liability. Another significant Missouri case is Lambing v. Southland Corp., 739 S.W.2d 717 (Mo. Sup Ct. 1988), which reinforced the necessity for establishments to ensure they do not serve alcohol to visibly intoxicated patrons. These cases underscore Missouri’s commitment to promoting responsible alcohol service and holding businesses accountable for their actions. By examining these Missouri-specific precedents, we can better understand the legal responsibilities of establishments and their critical role in preventing alcohol-related harms.
Seeking Legal Representation
If you’ve been injured by an intoxicated person, it’s essential to seek legal representation from an experienced attorney. An attorney can help you navigate the complex process of filing a dram shop claim and seeking compensation. A lawyer can also help you determine who is liable for your injuries and losses.
If you’ve been injured by an intoxicated person, Bradley Law’s dram shop lawyers can help. We offer free consutations and will explore your legal options. Contact us for further information.
