Dram Shop
Encyclopedia
Dram shop or dramshop is a legal term in the United States
United States
The United States of America is a federal constitutional republic comprising fifty states and a federal district...

 referring to a bar, tavern or the like where alcoholic beverage
Alcoholic beverage
An alcoholic beverage is a drink containing ethanol, commonly known as alcohol. Alcoholic beverages are divided into three general classes: beers, wines, and spirits. They are legally consumed in most countries, and over 100 countries have laws regulating their production, sale, and consumption...

s are sold. Traditionally, it referred to a shop where spirits were sold by the dram
Dram (unit)
The dram was historically both a coin and a weight. Currently it is both a small mass in the Apothecaries' system of weights and a small unit of volume...

, a small unit of liquid.

Dram shop liability
Legal liability
Legal liability is the legal bound obligation to pay debts.* In law a person is said to be legally liable when they are financially and legally responsible for something. Legal liability concerns both civil law and criminal law. See Strict liability. Under English law, with the passing of the Theft...

 refers to the body of law governing the liability of taverns, liquor stores and other commercial establishments that serve alcoholic beverages. Generally, dram shop laws establish the liability of establishments arising out of the sale of alcohol to visibly intoxicated persons or minors who subsequently cause death or injury to third-parties (those not having a relationship to the bar) as a result of alcohol-related car crashes and other accidents.

The laws are intended to protect the general public from the hazards of serving alcohol to minors and intoxicated
Drunkenness
Alcohol intoxication is a physiological state that occurs when a person has a high level of ethanol in his or her blood....

 patrons. Groups such as Mothers Against Drunk Driving
Mothers Against Drunk Driving
Mothers Against Drunk Driving is a non-profit organization in the United States that seeks to stop drunk driving, support those affected by drunk driving, prevent underage drinking, and overall push for stricter alcohol policy...

 (MADD) have advocated for the enforcement and enactment of dram shop laws across the United States as well as in the United Kingdom
United Kingdom
The United Kingdom of Great Britain and Northern IrelandIn the United Kingdom and Dependencies, other languages have been officially recognised as legitimate autochthonous languages under the European Charter for Regional or Minority Languages...

, Canada
Canada
Canada is a North American country consisting of ten provinces and three territories. Located in the northern part of the continent, it extends from the Atlantic Ocean in the east to the Pacific Ocean in the west, and northward into the Arctic Ocean...

, New Zealand
New Zealand
New Zealand is an island country in the south-western Pacific Ocean comprising two main landmasses and numerous smaller islands. The country is situated some east of Australia across the Tasman Sea, and roughly south of the Pacific island nations of New Caledonia, Fiji, and Tonga...

 and Australia
Australia
Australia , officially the Commonwealth of Australia, is a country in the Southern Hemisphere comprising the mainland of the Australian continent, the island of Tasmania, and numerous smaller islands in the Indian and Pacific Oceans. It is the world's sixth-largest country by total area...

. The earliest dram shop laws date from the 19th century temperance movement
Temperance movement
A temperance movement is a social movement urging reduced use of alcoholic beverages. Temperance movements may criticize excessive alcohol use, promote complete abstinence , or pressure the government to enact anti-alcohol legislation or complete prohibition of alcohol.-Temperance movement by...

.

The laws have drawn criticism by those who claim they downplay the role of personal responsibility.

Differences among U.S. state laws

Serving alcohol to minors is illegal in all 50 states. Many states impose liability on bars for serving minors who subsequently injure themselves or others in order to deter minor from being served alcohol. Thus in states like Texas
Texas
Texas is the second largest U.S. state by both area and population, and the largest state by area in the contiguous United States.The name, based on the Caddo word "Tejas" meaning "friends" or "allies", was applied by the Spanish to the Caddo themselves and to the region of their settlement in...

 and New Jersey
New Jersey
New Jersey is a state in the Northeastern and Middle Atlantic regions of the United States. , its population was 8,791,894. It is bordered on the north and east by the state of New York, on the southeast and south by the Atlantic Ocean, on the west by Pennsylvania and on the southwest by Delaware...

, minors can sue a drinking establishment for their own injuries sustained while intoxicated. In other states, dram shop liability only extends to serving the "habitually intoxicated."

The majority of states allow for recovery when the defendant knew (or should have known) the customer was intoxicated. Some states have attempted to address this problem through more exacting tests. Missouri
Missouri
Missouri is a US state located in the Midwestern United States, bordered by Iowa, Illinois, Kentucky, Tennessee, Arkansas, Oklahoma, Kansas and Nebraska. With a 2010 population of 5,988,927, Missouri is the 18th most populous state in the nation and the fifth most populous in the Midwest. It...

's recently revised dram shop law requires proof that the party demonstrates "significantly uncoordinated physical action or significant physical dysfunction." In Texas, a patron must be so obviously intoxicated that he presents a clear danger to himself and others.

On the other hand, in Massachusetts
Massachusetts
The Commonwealth of Massachusetts is a state in the New England region of the northeastern United States of America. It is bordered by Rhode Island and Connecticut to the south, New York to the west, and Vermont and New Hampshire to the north; at its east lies the Atlantic Ocean. As of the 2010...

, the state's highest court has held that a bar could be sued where a patron exhibiting "drunk, loud and vulgar" behavior was determined to be "visibly intoxicated," Cimino v. The Milford Keg, Inc., 385 Mass. 323 (1981). In Cimino, evidence showed that the intoxicated patron had been served six or more White Russian
White Russian (cocktail)
A White Russian is a sweet cocktail made with vodka, coffee liqueurs , and cream served with ice in an Old Fashioned glass...

s by the Milford Keg bar. The patron left the bar, arriving at another bar about fifteen minutes later "totally drunk," holding a White Russian. The next bar that he went to refused to serve him. Shortly thereafter, the intoxicated patron lost control of his car, drove on a sidewalk, and killed a pedestrian.

Under Illinois
Illinois
Illinois is the fifth-most populous state of the United States of America, and is often noted for being a microcosm of the entire country. With Chicago in the northeast, small industrial cities and great agricultural productivity in central and northern Illinois, and natural resources like coal,...

' dram shop law, plaintiffs can recover after demonstrating that:
  1. alcohol was sold to the patron by the defendant;
  2. damages were sustained by the plaintiff;
  3. the sale of alcohol was the proximate cause
    Proximate cause
    In the law, a proximate cause is an event sufficiently related to a legally recognizable injury to be held the cause of that injury. There are two types of causation in the law, cause-in-fact and proximate cause. Cause-in-fact is determined by the "but-for" test: but for the action, the result...

     of the intoxication; and
  4. intoxication was at least one cause of the plaintiff's damages.


Proximate cause includes the requirement that the dram shop must have been able to foresee that its actions could cause injuries to third parties, but this is true for any establishment that serves (sells) alcohol. One Illinois court allowed a lawsuit against a company that dropped off self-serve barrels of beer at a union picnic.

Some states (such as New Jersey
New Jersey
New Jersey is a state in the Northeastern and Middle Atlantic regions of the United States. , its population was 8,791,894. It is bordered on the north and east by the state of New York, on the southeast and south by the Atlantic Ocean, on the west by Pennsylvania and on the southwest by Delaware...

) impose liability on social hosts as well as commercial establishments. This related area of the law is known as social host liability
Social host liability
Social host liability is created by a statute or case law that imposes liability on social hosts as a result of their serving alcohol to adults or minors...

.

Different states' dram shop acts also differ as to whether a person who becomes intoxicated and injures themselves has a cause of action against the establishment that served them. Some states, such as New Jersey
New Jersey
New Jersey is a state in the Northeastern and Middle Atlantic regions of the United States. , its population was 8,791,894. It is bordered on the north and east by the state of New York, on the southeast and south by the Atlantic Ocean, on the west by Pennsylvania and on the southwest by Delaware...

, will allow such a cause of action but will instruct the jury to take the intoxicated person's own negligence into account. Other states, such as New York
New York
New York is a state in the Northeastern region of the United States. It is the nation's third most populous state. New York is bordered by New Jersey and Pennsylvania to the south, and by Connecticut, Massachusetts and Vermont to the east...

, will not allow a person who injures themselves to bring a lawsuit against the bar that served them, but if that person dies will allow such a person's children to sue the drinking establishment for loss of parental consortium.

Effectiveness

According to a 2004 comparison by YAERD, a U.S. organization that studies alcohol use among youth, Michigan and Alaska, whose dram shop laws are considerably narrower than MADD proposes, have drunk-driving fatality rates below the national average, while Illinois is above the national average despite having one of the broadest dram shop laws. Comparisons between a rural state like Alaska, with the lowest population density in the United States, with that of Illinois, which includes the Chicago metropolitan area and other major cities, may not be scientifically valid because of the existence of confounding variables. A 1993 study from the National Bureau of Economic Research found some reduction in alcohol-related fatalities from the implementation of dram shop laws though it did not control for the special cases of Utah and Nevada, which may have distorted the results.

External links

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