You and some friends are celebrating a birthday at a local bar. Another patron, clearly drunk, begins taunting your group, acting belligerently, and threatening physical violence. Despite your requests, the bartender continues to serve the patron. Eventually, in a drunken rage, the patron strikes you in the face, breaking your jaw.
You want to get your medical bills and lost wages paid, and get compensation (what the law calls "damages") for your pain and suffering. But the patron has no insurance or other assets you can look to for payment. Can you bring a claim for damages against the bar? In Minnesota, the answer is: Yes, possibly so.
We start with an explanation of liquor liability laws generally. From there, we'll turn our attention to Minnesota law.
You might be surprised to learn that as a general rule, there's no liability (legal responsibility) for selling or serving liquor to someone who gets drunk and injures others. Why? Alcohol-related accidents and injuries, the thinking goes, are caused by drinking alcohol, not by selling or serving it.
Liquor retailers like this rule. While the logic doesn't stand up to scrutiny, the rule does have some appeal, given its simplicity. But it's not hard to see how it can—and does—sometimes produce unfair results. Our opening example provides a simple illustration.
Partially in response to this unfairness, many states have enacted liquor liability laws. A liquor liability law, as we're using the term, is usually a state statute making those who sell, serve, or furnish alcoholic beverages liable for damages when the people they sell to or serve get drunk and injure others. We're not referring to criminal laws making certain liquor sales illegal.
Liquor liability laws come in two varieties: Dram shop laws and social host liability laws.
Long ago, bars and taverns sometimes were called "dram shops," because they sold liquor by a measurement called a "dram." Typically, a dram shop law makes a liquor licensee—a person or business licensed by the state to sell beer, liquor, and other alcoholic beverages to the public—liable for injuries caused by their drunk customers.
Today, most states have a dram shop law. In some states, the law only applies when a licensee sells to or serves a clearly intoxicated customer. In other states, it also covers sales to underage customers.
The term "social host" is just legal-speak for someone who hosts a party. When there's liquor on hand, often a few guests overindulge. A social host liability law makes the party host legally responsible for injuries caused by their drunk party guests.
Social host liability laws aren't as common as dram shop laws. Where they're found, they often apply only when the host furnishes alcoholic beverages to underage drinkers, or allows them to drink on the host's property.
You can find Minnesota's dram shop statute at Minn. Stat. § 340A.801, subd.1 (2024). Generally speaking, it allows those who are injured by an intoxicated person to bring a claim for damages against a seller who caused the intoxication by illegally selling alcoholic beverages.
As interpreted by Minnesota's courts, a dram shop claim requires proof of these elements:
An illegal sale. Under Minnesota law, an illegal sale includes any sale:
Proof of obvious intoxication requires showing the familiar, observable signs of being drunk, like slurred speech, stumbling and falling, lack of coordination, and passing out. Blood alcohol content can be evidence of obvious intoxication, but by itself won't suffice. The same is true for expert medical testimony.
Good faith reliance on a realistic-looking fake ID is a defense to a dram shop claim premised on an illegal sale to an underage customer. (Minn. Stat. § 340A.801, subd. 3a (2024).)
Notice of claim. Before you can bring a Minnesota dram shop claim, you first must give the licensee written notice of your intent to do so. The notice must state:
(Minn. Stat. § 340A.802, subd. 1 (2024).) This notice must be served on the licensee within 240 days after the date you hire a lawyer to represent you on the claim. (Minn. Stat. § 340A.802, subd. 2 (2024).)
Gerald stops by Terry's Tavern for a few drinks. Several rounds later, Gerald is stumbling and staggering, slurring his speech, and having difficulty holding on to his drink glass. Nevertheless, the bartender continues to serve Gerald. Some time later, Gerald decides to leave the bar. As he tries to walk down the front steps, he stumbles and collides with Paula, who falls down the steps and is injured.
Paula can seek damages directly from Gerald for his negligent behavior. She can also bring a dram shop claim against Terry's Tavern, a liquor licensee. Terry's illegally sold liquor to Gerald when he was visibly intoxicated, and caused his intoxication. Because Gerald was intoxicated, he injured Paula.