Under certain circumstances, dram shop laws expand the liability for damages done by a drunk driver to include the person or establishment that furnished the alcohol. Businesses are not allowed to keep selling alcohol for as long as a person is willing to drink it without regard for the person’s apparent intoxication.
Texas dram shop laws specify the standards under which a person or business will be held responsible for the damage done by an individual who was served or allowed to consume alcohol. If dram shop laws apply, it means a person injured by a drunk driver has an additional resource available to pay damages.
What are Dram Shop Laws in Texas?
The term ‘dram’ comes from a period in 18th-century England where alcohol—especially gin—was sold in a quantity known as a dram. Dram shop laws originated as an attempt to have shopkeepers limit the alcohol consumed by those who would not or could not limit themselves.
The Texas Alcoholic Beverages Code creates a cause of action against a person who sells or serves alcohol under a license or permit if the following elements can be proven:
- At the time the alcohol was provided, it was “apparent” to the provider that the person served alcohol was “obviously intoxicated” and “presented a clear danger” to themselves or others.
- The intoxication of the person served alcohol was the proximate cause of the losses suffered by the complaining party.
For intoxication to be the proximate cause of an injury, it must be true that the injury would not have happened but for the intoxication of the drunk driver.
No Social Host Liability Unless Alcohol is Given to a Minor
The only exception is when adults provide alcohol to children. Adults aged 21 or older who knowingly provide or make available alcohol to minors under age 18 can be held liable for the damage proximately caused by a minor’s intoxication.
Defenses to Dram Shop Liability
Businesses facing dram shop liability accusations may try to defend themselves by arguing that there is no liability because it was not apparent to the provider that the person served alcohol was obviously intoxicated. Or perhaps the person served alcohol was intoxicated, but the proximate cause of the injuries was the mechanical malfunction of the vehicle and not the intoxication of the driver.
The Alcoholic Beverages Code designates a safe harbor for employers to protect a business from dram shop liability if the safe harbor requirements are met. Employers providing alcohol will not be found responsible for the actions of an employee if they do the following:
- Require employees to attend a training program for alcohol safety awareness
- The employee in question actually attended the program
- The employer has not directly or indirectly encouraged the employee to violate the law
How ‘Obvious Intoxication’ Must be Proven for Dram Shop Liability
In Roager v. Myers (April 2025), Myers was seriously injured when her car was rear-ended by Khan, who had been served alcohol at Cadot earlier in the evening. Myers sued under dram shop laws. There was no evidence that Khan appeared intoxicated to anyone while at Cadot. However, some hours later, a blood test revealed a BAC well above the legal limit, suggesting Khan had consumed a large quantity of alcohol at some point in the evening.
The trial court dismissed Myers’ claim based on the lack of evidence of obvious intoxication. The appeals court reversed the reasoning that Khan’s BAC created a question of fact as to whether Cadot should have noticed Khan was obviously intoxicated.
In reversing the appellate court decision, the Supreme Court noted that while circumstantial evidence may be used to support a dram shop claim, it cannot stand alone and must be linked to other direct evidence indicating there was intoxication at the time alcohol was served.
Dram Shop Laws Can Expand Liability in Drunk Driving Accidents
The key consideration for dram shop liability to apply is whether it was apparent (or should have been apparent) to the server of alcohol that the person served was intoxicated to the point of hurting themselves or someone else. It’s a high bar to begin with, and businesses that make sure their employees get the appropriate alcohol training won’t be held responsible for the intoxication of customers.
Drunk driving hurts people. When businesses continue to serve alcohol to intoxicated persons, they contribute to drunk driving accidents and the damage done by drunk drivers.
Why Texas Has Dram Shop Laws
Before 1987, it was still illegal to serve alcohol to intoxicated persons but there were no legal consequences to businesses for the damage done by over-served patrons. In an attempt to help reduce the incidence of drunk driving and accidents, the Texas Legislature passed the Dram Shop Act.
The Dram shop laws place some of the responsibility for a drunk driver’s intoxication level on the person or place that served the alcohol. Persons who serve alcohol are required to be alert for signs of intoxication and refuse to serve or stop serving anyone who appears intoxicated.
When someone is injured by a drunk driver who has spent several hours in a bar drinking, dram shop laws don’t necessarily apply to hold the bar responsible. A recent Texas Supreme Court case has reaffirmed that determining intoxication for purposes of liability is based on the recognition of intoxicated behavior when alcohol is served and not speculation derived from information later discovered.
Despite Dram Shop Laws, Drunk Driving Accidents Remain a Serious Problem in Texas
Impaired driving is a significant contributing factor in traffic fatalities in Texas. In the ten years between 2014 and 2023, the Texas Department of Transportation (TxDOT) reported that 37% of the traffic fatalities involved drivers impaired by drugs or alcohol. Most of the fatal accidents occurred on weekends in the wee hours just after the bars had closed.
Even though there was a 15% decline in alcohol-related fatalities between 2022 and 2023, there were still an average of 65 alcohol-related crashes every day in 2023 and those crashes resulted in the deaths of nearly 3 Texans each day. July and August are the two worst months for drunk driving fatalities.
If you or a loved one has been injured in a drunk driving accident, contact our drunk driving accident lawyers today to schedule your free consultation.
**Disclaimer**: This article is for informational purposes only and does not constitute legal advice. Consult a qualified attorney for case-specific guidance.
