The Dram Shop Act and Social Host Liability

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Laws allowing liability of establishments arising out of the sale of alcohol to obviously intoxicated persons or minors who subsequently cause death or injury to third-parties as a result of alcohol-related crashes.

Dram shop liability laws reduce alcohol-related crashes.

Texas experienced a 6.5 percent decrease in single vehicle nighttime crashes resulting in injury immediately after a liability case was filed in 1983, and an additional 5.3 percent decrease after another case was filed in 1984.i In 2001, researchers found a 5.8 percent decrease in fatal crashes from dram shop liability laws.ii Other studies have found a similar deterrent effect from dram shop liability by three to five percent. This is because this liability makes it in the economic best interest of establishments to have responsible serving practices.

Dram shop laws increase publicity of the impacts of over-serving.

Studies show that states that have a high level of dram shop liability have more publicity about the impacts of liability and have more servers and managers who are aware of liability.

Dram shop laws decrease excessive and illegal consumption.

Studies have found that states with high levels of dram shop liability also had fewer lower-price drink promotions (like “happy hours”) that encourage excessive consumption in a limited amount of time. This is important, because access to an unlimited amount of alcohol for a flat fee increases the number of drinks in a sitting by 1.6 drinks on average.xi States with dram shop liability also had more thorough checks of identification on average, which means that fewer minors were able to drink illegally.xii This is an accomplishment, considering that US purchase surveys show that 40 to 90 percent of outlets sell to underage buyers and that this stems from low and inconsistent levels of enforcement against adults who sell or provide alcohol

Dram shop laws do not decrease personal responsibility.

Creating a cause of action against an over-serving establishment does not mean that the individual is not also held responsible. Rather, punitive damages for both drinking drivers and serving establishments serve similar purposes – to show them the penalties that come with their actions and to cause them to rethink their practices.

At Maya Murphy, P.C., our personal injury attorneys are dedicated to achieving the best results for individuals and their family members and loved ones whose daily lives have been disrupted by injury, whether caused by a motor vehicle or pedestrian accident, a slip and fall, medical malpractice, a defective product, or otherwise. Our attorneys are not afraid to aggressively pursue and litigate cases and have extensive experience litigating personal injury matters in both state and federal courts, and always with regard to the unique circumstances of our client and the injury he or she has sustained.

Source: MADD