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

While driving home from work one evening, a drunk driver ran a red light and broadsided your car, causing you serious injuries. According to the police report, the uninsured drunk driver had spent much of the afternoon and early evening drinking at a local bar.

It probably doesn't make sense to sue the uninsured drunk driver. But what about the local bar that served the driver alcohol? Does Kentucky let you sue the bar to recover compensation (what the law calls "damages") for your injuries? The answer is: Possibly so.

We start with an overview of liquor liability laws generally. From there, we'll explain Kentucky's laws, the damages you can collect if your claim succeeds, and how much time you have to file a lawsuit in court.

Liquor Liability Laws Generally

In most states—absent a law that says otherwise—there's no legal liability (responsibility) for selling or serving alcohol to a person who gets drunk and causes injuries. Why? Because the generally prevailing rule is that alcohol-related injuries are caused by drinking alcohol, not by selling or serving it. While the logic doesn't withstand scrutiny, this no-liability rule is understandably popular among those who provide alcohol to others.

The rule is far less popular with people who are injured or whose relative is killed when a drunk bar patron drives off and causes a wreck. After all, as between an innocent victim and a liquor seller who served an often clearly drunk customer, who should pay? The question answers itself.

Most states have responded with liquor liability laws—usually a statute—making those who sell or furnish alcohol responsible for damages when a customer or guest later injures others in an alcohol-related accident. There are two kinds of liquor liability laws: Dram shop laws and social host liability laws.

Dram Shop Laws

Long ago, bars and taverns were called "dram shops" because they sold liquor by a measurement called a "dram." A typical dram shop law makes a liquor licensee—a person or business licensed by the state to sell or serve beer, wine, or liquor directly to the public—legally responsible for injuries caused by a drunk customer.

Today, most states have a dram shop law. But liability is narrowly targeted, usually at licensees who serve a clearly drunk customer. In some states, dram shop laws also impose liability for serving underage drinkers.

Social Host Liability Laws

A social host liability law puts social hosts—those who host parties and other social events—on the legal hook when a drunk guest causes harm. Less prevalent than dram shop laws, social host liability laws also tend to be narrowly tailored. They commonly reach only hosts who furnish alcohol to underage drinkers, or who allow underage drinkers to drink on their property. Most don't impose liability for furnishing alcohol to guests who are of legal drinking age.

Kentucky's Dram Shop Law

Kentucky's dram shop law, found at Ky. Rev. Stat. § 413.241 (2024), follows the no-liability rule described above. Except in narrowly-defined circumstances, Kentucky liquor licensees aren't legally liable for off-premises injuries caused by a drunk customer who's of lawful drinking age. (Ky. Rev. Stat. § 413.241(1)-(2) (2024).)

When Can a Licensee Be Held Liable?

A Kentucky liquor licensee might be liable under the dram shop statute when:

• they sell to or serve an underage drinker
• the injuries happen on the licensee's premises
• a reasonable person in the licensee's position would know the person they were serving was already drunk
• they cause intoxication by forcing a person to drink, or
• they falsely represent that the beverages they're serving don't contain alcohol.

Kentucky Dram Shop Liability Example

Dana, who was of legal drinking age, stopped at Telly's Tavern on her way home from work. After drinking five drinks in the course of 90 minutes, Dana was slurring her speech, having difficulty staying seated on her barstool, and nearly passed out. Even so, the bartender continued to serve Dana. Two more rounds later, Dana got up to leave. Unable to stand, she fell into Pam, who was seated on the next barstool. Pam fell to the floor and broke her wrist.

Pam can bring a claim against Dana because Dana's negligence caused Pam's injury. Pam also has a dram shop claim against Telly's Tavern. A reasonable person in the bartender's position, given Dana's behaviors, would have known that they were serving a customer who was already drunk.

Kentucky Social Host Liability

Kentucky doesn't have a statute making a social host liable for damages for providing alcohol to a social guest. Does Kentucky law impose social host liability in the absence of a statute? The answer isn't clear.

There's no indication that Kentucky would make a social host liable for furnishing alcohol to someone who's old enough to legally drink under Kentucky law. It's possible, though, that a social host might be found negligent for providing alcohol to an underage drinker. Here's why.

Kentucky makes it a misdemeanor to "knowingly sell[], give[], purchase[] or procure[] any alcoholic or malt beverage in any form to or for a minor." (Ky. Rev. Stat. § 530.070(1)(a) (2024).) A violation of this law might form the basis of a civil negligence claim for damages against a social host. The Kentucky Supreme Court hasn't spoken to this issue, so there's simply no clear answer.

If you have questions about Kentucky social host liability, speak to a Kentucky liquor liability attorney about the facts of your case.

How Long Do I Have to File a Kentucky Dram Shop Lawsuit?

A lawsuit to collect damages for personal injuries under the dram shop statute must be filed within one year. (Ky. Rev. Stat. § 413.140(1)(a) (2024).) The one-year clock usually starts on the date you're injured. In limited circumstances, you might get more time.

What happens if you don't sue before the filing deadline runs out? You've probably lost your right to collect damages for your injuries. Try to file a lawsuit and the court will dismiss it as untimely. You won't be able to negotiate a settlement of your claim because under Kentucky law, you no longer have a claim.

(Learn more about Kentucky's personal injury statutes of limitations.)

What Damages Can I Collect in a Kentucky Dram Shop Lawsuit?

If you win your Kentucky dram shop case, you'll collect personal injury damages and, if your property was harmed, property damages, too. Specifically, you can recover what the law calls "compensatory damages." As the name suggests, these damages are meant to compensate you for your injury-related losses. Compensatory damages fall into two categories.

Special Damages

Special damages, sometimes also called "economic" damages, cover losses that you (or an insurance company on your behalf) pay out of your pocket. Medical bills, lost wages, amounts you pay for replacement household services, and medical equipment costs are some common examples.

General Damages

General damages, also known as "noneconomic" damages, compensate you for injuries that don't directly cost you out of pocket. Included here are things like pain and suffering, emotional distress, lost enjoyment of life, disability and disfigurement, and more.

What About Punitive Damages?

Punitive damages don't compensate you for your injuries or losses. Instead, they're meant to punish a wrongdoer and to deter others from acting similarly in the future. Kentucky law allows punitive damages, but they're rarely awarded in personal injury cases. Your lawyer can fill you in on the details.

Get Help With Your Kentucky Dram Shop Case

It's tempting to think that dram shop cases must be easy to win. After all, you were injured by a person who, while already drunk, was served more alcohol. What could be easier?

Don't be fooled. Dram shop cases often involve difficult factual and legal issues concerning liability and another key element called causation. Chances are you don't know your way around these issues, but rest assured that the liquor licensee's attorney does. Without experienced legal counsel on your side, you can quickly find yourself in over your head.

Don't take needless chances with your claim. When you're ready to move forward, here's how you can find a lawyer near you.