Dram Shop Law and Why Does It Matter?

What Is the Texas Dram Shop Law and Why Does It Matter?

This is known as the Texas Dram Shop Law—and it plays a crucial role in many drunk driving personal injury claims. When a person is injured or killed in a drunk driving accident, most people think the impaired driver is the only one responsible. But in some cases, Texas law allows victims to hold bars, restaurants, or alcohol-serving establishments accountable too.

Understanding the Texas Dram Shop Law

The Texas Alcoholic Beverage Code Section 2.02 (commonly referred to as the Dram Shop Act) allows injured individuals to pursue damages against a business that over-served alcohol to a clearly intoxicated person who then caused harm to others.

To win a dram shop case, you must prove:

  • The bar, restaurant, or alcohol provider knowingly served alcohol to someone who was obviously intoxicated to the point that they presented a clear danger to themselves and others.

  • The intoxicated person’s actions caused the accident or injuries.

Why the Dram Shop Law Exists

The purpose of the Dram Shop Law is to encourage alcohol-serving establishments to act responsibly and avoid contributing to dangerous situations. If a bartender keeps pouring drinks for someone who is clearly impaired—and that person later causes a crash—the establishment may share legal liability.

Common Examples of Dram Shop Liability

  • A bar serves shots to someone slurring their speech and stumbling, who then drives and crashes.

  • A nightclub keeps refilling drinks for a patron who has already passed out and later assaults someone.

  • A restaurant knowingly serves a visibly drunk customer who later causes a multi-car accident.

Why This Law Matters to Victims

Dram shop liability can be a powerful tool for accident victims. In cases where the drunk driver has minimal insurance coverage or no assets, holding the establishment accountable can provide additional avenues for recovering damages such as:

  • Medical bills

  • Lost wages

  • Pain and suffering

  • Funeral expenses in wrongful death cases

It also sends a message to businesses to take their responsibilities seriously when serving alcohol.

How to Prove a Dram Shop Claim

These claims require strong evidence, including:

  • Surveillance footage from the bar or restaurant

  • Witness testimony from servers, patrons, or staff

  • Receipts or bar tabs showing how much alcohol was served

  • Police reports and toxicology results

A skilled personal injury lawyer will know how to gather and preserve this evidence to build a solid case.

Dram Shop Law Also Applies to Social Hosts (Sometimes)

While Texas law generally protects private party hosts, they may still be held liable if they provide alcohol to a minor under 18 who then causes an accident. Parents or guardians who knowingly allow underage drinking can face serious legal consequences if harm results.

Final Thoughts

If you were injured in a drunk driving accident in Texas, you may have more legal options than you think. The Texas Dram Shop Law holds irresponsible businesses accountable for serving alcohol to clearly intoxicated individuals who go on to cause harm.

Consulting an experienced personal injury attorney can help you determine whether a dram shop claim applies to your case—and maximize the compensation you deserve.

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