Alabama Dram Shop Laws and Social Host Liability for Alcohol-Related Accidents

You probably found your way here because you've been injured in Alabama by someone who was overserved alcohol at a restaurant, a bar, or maybe a private party. You're thinking about bringing an insurance claim or filing a personal injury lawsuit to collect compensation ("damages," in the language of the law) for your injuries.

But you have questions about Alabama law. Can I sue the business that sold or served the alcohol? If so, how much time do I have to file my case? What kinds of damages am I allowed to recover?

You're in the right place. After a quick introduction to liquor liability laws generally, we'll turn our attention to Alabama law to answer those questions.

Liquor Liability Laws Generally

The general rule for liquor liability is simple: Absent a law to the contrary, there is no liability.

Under the common law—the legal system American states inherited from England during the founding era—a person or business that sells or provides alcohol isn't on the hook for money damages when a customer or guest gets drunk and causes injuries or death. Why? Because the law decided long ago that alcohol-related injuries are caused by drinking alcohol, not by selling or supplying it.

You don't have to dig too deep to find the logical shortcomings of this rule, or to see how it might produce unfair results. As between an innocent accident victim and a bar that overserved an already-drunk patron, who should bear the consequences of that patron's misdeeds? The question answers itself.

For this reason, most states now have laws that make sellers and suppliers of alcohol pay damages for alcohol-related injuries and fatalities, at least in some situations. These laws take two forms: Dram shop laws and social host liability laws.

Dram Shop Laws

Long ago, bars and taverns were known as "dram shops" because they sold liquor by a measure called the "dram." Today, dram shop laws typically regulate liquor retailers, meaning people and businesses licensed by the state to sell or serve alcohol directly to the public. Most states have a dram shop law.

Dram shop laws usually make liquor retailers civilly liable—meaning responsible to pay money damages—for injuries or deaths caused by their drunk customers, but only in narrow circumstances. For example, most dram shop laws target retailers that provide alcohol to a customer who's already visibly drunk. Some also impose liability for selling to or serving underage drinkers.

Social Host Liability Laws

Social host liability laws impose civil damages liability on those who furnish alcohol at parties and other social events. These laws tend to be very narrowly tailored. Most don't make a party host liable simply for serving adults of legal drinking age. Instead, the typical law goes after hosts who provide alcohol to underage drinkers, or who allow underage drinkers to consume alcohol on the their property.

Alabama's Dram Shop Law

Alabama's dram shop law—found at Ala. Code § 6-5-71 (2024)—applies to "any person" who sells or furnishes alcoholic beverages in violation of Alabama law. Most dram shop cases involve retailers regulated by state and local authorities.

Who Can Bring a Claim

The statute allows claims for damages by two categories of people:

• the person who was injured or, when that person is incapacitated or killed, their legal representative, and
• "every spouse, child, parent, or other individual" who's personally injured, whose property is damaged, or who suffers a loss of support.

Note that Alabama doesn't allow a claim by the drunk person against whoever sold or furnished them the alcohol.

Elements of a Claim

To succeed with a claim under Alabama's dram shop statute, you must prove—based on a totality of the circumstances at the time the alcohol was sold or served—that:

• any person, acting contrary to Alabama law
• knowingly sold, furnished, or served alcoholic beverages
• to an individual who was visibly intoxicated, and
• the sale, furnishing, or service caused injury.

What does this mean? Here's a quick breakdown of the key terms. For advice that's specific to your situation, consult with an Alabama liquor liability attorney.

Contrary to law. In most cases, this means a sale or service of alcohol in violation of state alcoholic beverage regulations. Here are two common examples of sales or service contrary to those regulations:

• selling, furnishing, or serving alcohol to a person who's visibly intoxicated, (see Ala. Code Regs. § 20-X-6-.02(4) (2024), and
• selling, furnishing, or serving alcohol to a minor. (See Ala. Code Regs. § 20-X-6-.09(1) (2024).)

Knowingly sold, furnished, or served. This language requires proof that whoever sold, furnished, or served the alcohol knew, or based on a totality of the circumstances reasonably should have known, that a sale was contrary to law. Stated more directly, this means they knew or should have known that the person was:

• visibly intoxicated, or
• a minor.

Caused injury. Expect the defendant (the party you're suing) to claim that their actions weren't the cause of your injury. Specifically, be on the lookout for these defenses:

• your injury was caused by negligence, not by intoxication, so it would have happened anyway
• your contributory negligence caused your injury, or
• the drunk person bought or was served alcohol somewhere else, and that was the cause of your injury.

Example: Alabama Liquor Liability Law

Dave, who was old enough to legally drink in Alabama, spent several hours at the Knowingly Drunk Saloon. Despite Dave becoming loudly and visibly intoxicated, the bartender continued to serve him. While trying to drive home, Dave crossed the center line and hit Penny's car head on, causing her serious injuries.

Penny can sue Dave for negligently hitting her. She also has a dram shop case against the Knowingly Drunk Saloon. The bartender knowingly served Dave while he was visibly intoxicated, contrary to Alabama law. The bartender's actions caused Penny's injuries, making the bar liable for her damages.

Social Host Liability in Alabama

Alabama social hosts also face potential liability for furnishing alcohol, but only in narrow, limited circumstances.

A social host isn't legally responsible for providing alcohol to an adult of legal drinking age, even if the adult is visibly intoxicated. (See Beeson v. Scoles Cadillac Corp., 506 So. 2d 999, 1001 (Ala. 1987).) In Alabama, it's not unlawful for a social host—who isn't subject to state alcoholic beverage regulations—to furnish alcohol to a drunk adult.

But furnishing alcohol to a minor is contrary to Alabama law. So, a social host who furnishes alcohol directly to a minor can be liable for dram shop damages when the minor gets drunk and causes injuries or death. (See Martin v. Watts, 513 So. 2d 958, 963 (Ala. 1987).)

Damages in an Alabama Dram Shop Case

If you win your Alabama dram shop case, you're allowed to collect "all damages actually sustained as well as exemplary damages... ." (Ala. Code § 6-5-71 (2024).) This means you can collect two kinds of damages:

• compensatory damages, and
• exemplary damages, also called punitive damages.

Compensatory Damages

As the name suggests, compensatory damages are meant to compensate you for your injury-related losses. There are two kinds of compensatory damages, and you're allowed to recover both.

• Special damages. Also called "economic" damages, special damages cover losses that you (or, in some instances, your insurance company) pay out of your pocket. Medical bills, lost wages, and amounts you pay for replacement household services are common examples.
• General damages. General damages, sometimes called "noneconomic" damages, are meant to compensate you for injuries that don't cost you directly out of pocket. Included are things like emotional distress, loss of enjoyment of life, disability and disfigurement, and pain and suffering.

Punitive Damages

Punitive damages don't compensate you for your losses. Instead, they're designed to punish extreme and outrageous misconduct, and to deter others from acting similarly. While Alabama's dram shop law allows these damages, they're rarely awarded.

In addition, Alabama law caps punitive damages at the greater of:

• three times your compensatory damages, or
• $1,500,000.

(Ala. Code § 6-11-21(d) (2024).)

Time Limit for Filing an Alabama Dram Shop Case

Alabama, like all states, puts a limit on the time you have to file a dram shop case in court. You can find this limit, called a "statute of limitations," at Ala. Code § 6-2-38(l) (2024). As a rule, the filing deadline is two years from the date you were injured. In some circumstances you might have longer to file—but don't count on it.

What happens if you miss the filing deadline? Absent a statute that allows you more time, your dram shop claim is legally dead. Nothing you do will bring it back to life. File a lawsuit and the court will dismiss it as untimely. The other side won't negotiate a settlement with you because under Alabama law, you no longer have a claim.

If you have questions or concerns about Alabama's dram shop statute of limitations, contact an Alabama lawyer right away. Don't delay, because time is the enemy of your claim.

Get Help With Your Alabama Dram Shop Case

It's tempting to think that a dram shop case must be simple. After all, a bar or restaurant overserved an intoxicated customer, who then injured or killed someone. How could the case be any easier? Not so fast.

Dram shop cases often involve thorny factual and legal issues requiring a deep understanding of Alabama law and court rules. Odds are that you simply don't have that kind of experience. But you can bet that the defendant's lawyer does. To make it a fair fight, you need expert legal counsel on your side.

When you're ready to move forward with your case, here's how to find an attorney near you.