Dram Shop Laws: Can I Sue a Bar After an Alcohol-Related Accident?

Dram shop laws are state laws that make liquor licensees—retailers that sell or provide alcoholic beverages under a license from the state—legally responsible for injuries caused by their drunk customers. "Dram shop" is a now-defunct slang term for taverns and pubs that used to sell liquor by a measure called the "dram." Today, most states have some version of a dram shop law.

In this article we explain:

• why dram shop laws exist
• how they typically work
• who can (and can't) sue under most dram shop laws, and
• special rules that often apply in dram shop cases.

Why Do Dram Shop Laws Exist?

Before they passed dram shop laws, states generally didn't allow lawsuits against liquor sellers for the actions of their drunk customers. Why? Lawmakers reasoned that drinking alcohol—not providing it—causes alcohol-related accidents. In states that don't have dram shop laws, this continues to be the rule.

While this no-liability general rule had superficial appeal, it often left drunk driving accident victims and their families without compensation for their losses. The drunk drivers often are judgment proof, meaning without auto insurance or other assets to pay damages. Absent a legal claim against a blameworthy seller, people hurt through no fault of their own were left with no good options.

Concerns like these prompted states to enact dram shop laws. But even in states where liquor licensees can be held responsible, proving a dram shop case can be challenging, as we explain below.

How Do Dram Shop Laws Work?

Each state makes its own rules, but there are some common themes across most dram shop statutes. In particular, selling or providing alcohol usually triggers dram shop liability only when the person being served is:

• younger than the legal drinking age (21 years old in most states), or
• visibly or obviously intoxicated.

Who Can You Sue Under a Dram Shop Law?

Dram shop laws typically apply to liquor licensees, meaning those licensed by the state to sell or furnish alcohol. The term includes bars, lounges, restaurants, liquor stores, and other retail liquor sellers. It also refers to employees like bartenders and wait staff, whose misconduct can be imputed to the licensee.

Liability for Serving Both Underage or Intoxicated People

These states impose liability for furnishing alcohol to people who are either underage, visibly intoxicated, or both:

• Alaska (see Alaska Stat. § 4.21.020 (2025))
• Arizona (see Ariz. Rev. Stat. § 4-311 (2025))
• Arkansas (see Ark. Code §§ 16-126-103 (2025) (sale to minors); 16-126-104 (2025) (sale to clearly intoxicated persons))
• Colorado (see Colo. Rev. Stat. § 44-3-801(3) (2025)),and
• Georgia (see Ga. Code § 51-1-40(b) (2025)).

Liability for Serving Either Underage or Intoxicated People

In other states, dram shop liability applies to a licensee who sells or furnishes intoxicants to a person who's either visibly drunk or underage, but not both. In Connecticut, for example, a seller can be liable for serving an intoxicated person. (Conn. Gen. Stat. § 30-102 (2025).) Iowa retailers face liability for providing alcohol to a visibly intoxicated customer. (Iowa Code § 123.92.1.a (2025).)

Other Approaches

California takes another approach. Dram shop liability attaches where a seller provides alcohol to a "visibly intoxicated minor." (See Cal. Bus. & Prof. Code § 25602.1 (2025).)

At the other end of the spectrum are the tiny handful of states where simply furnishing alcohol that causes or contributes to cause intoxication, without more, can mean dram shop liability. In Illinois, for instance, an injured person can sue a licensee for providing alcohol to someone who becomes drunk and later causes an accident. Liability arises simply from furnishing the alcohol, regardless of whether the liquor licensee furnished it to a drunk or underage drinker. (See 235 Ill. Comp. Stat. § 5/6-21 (2025).)

No Dram Shop Liability

Finally, a few states don't recognize dram shop liability at all. Injured parties can't get damages from a licensee who sold or served alcohol. Examples include:

• Delaware. Delaware doesn't have a dram shop statute. Several Delaware court cases have refused to impose dram shop liability absent a law passed by the legislature. See, for example, Shea v. Matassa, 918 A.2d 1090 (Del. 2007).
• Kansas. In Ling v. Jan's Liquors, 237 Kan. 629, 635 (1985), the Kansas Supreme Court found that Kansas has no dram shop law, and that Kansas courts have refused to judicially impose dram shop liability.
• South Dakota. The state legislature has decided that drinking alcoholic beverages, not selling them, is the cause of any injuries inflicted by someone who's intoxicated. (S.D. Codified Laws § 35-11-1 (2025).) South Dakota law specifically rejects dram shop liability. (S.D. Codified Laws § 35-4-78 (2025).)

Who Can Sue Under Dram Shop Laws?

In all states that allow dram shop liability, injured third parties—people other than the drunk person who caused the accident—are allowed to collect personal injury damages. When an injured third party dies because of their injuries, their estate or surviving family members can sue to recover wrongful death damages.

With few exceptions, first-party dram shop claims—those brought by the person who drank alcohol and caused the accident—aren't allowed. Some states make an exception for underage drinkers or minors who were served or allowed to drink in violation of state law.

Special Rules in Dram Shop Cases

Be on the lookout for special rules in dram shop cases. Here are two common examples.

Damage caps. Many states limit the damages you can collect from a licensee for a dram shop violation. In Iowa, for cases not involving significant injuries or death, "noneconomic" damages for injuries like pain and suffering and emotional distress are limited to $250,000. (Iowa Code § 123.92.1.c (2025).) Connecticut also caps dram shop damages at $250,000. Utah's dram shop law bars recovery of punitive damages. (Utah Code § 32B-15-201 (2025).)

Notice and other procedural requirements. States sometimes impose notice and other requirements dram shop plaintiffs. In Tennessee, for instance, a plaintiff must establish the statutory dram shop elements "beyond a reasonable doubt," an extremely high standard of proof usually reserved for criminal cases. (See Tenn. Code § 57-10-102 (2025).)

Oregon's dram shop act requires that the plaintiff give notice of their intent to sue. For injuries causing death, notice must be given within one year from the date of death. For any other injuries, notice is required within 180 days after the date of injury. (See Or. Rev. Stat. § 471.565(3) (2025).)

A Connecticut dram shop plaintiff must notify the licensee, in writing, of their intent to sue not later than 120 days from the date of injury. When the victim dies or is incapacitated, the notice period is extended to 180 days after the date of injury. (Conn. Gen. Stat. § 30-102 (2025).)

How Hard Is it to Prove a Dram Shop Claim?

Putting aside the special rules that often apply, dram shop cases can be difficult to win. Given a choice between two bad actors—a drunk driver who caused injury or death and the licensee who served them the alcohol—juries naturally tend to find the most fault with the drunk driver. It's the same reasoning many states use to deny dram shop liability in the first place.

Satisfying Statutory Requirements

If you sue, expect the court to strictly enforce the terms of the dram shop statute. You'll need to prove that:

• the licensee sold or furnished intoxicating liquors
• to an underage or visibly drunk person
• the liquor the licensee sold or furnished caused or contributed to cause the person's intoxication, and
• because they were intoxicated, the drunk person caused an accident.

Is There Insurance to Cover Your Dram Shop Claim?

A number of states require licensees to have liquor liability insurance (sometimes called "dram shop insurance" or a "liquor liability endorsement"). As with other liability policies, a successful claim can mean higher insurance premiums or canceled coverage.

When a licensee doesn't have the right kind of liability insurance, your ability to collect damages might be limited. Ordinary commercial general liability policies often exclude liquor liability, so without dram shop coverage there won't be insurance to pay for damages. A case out of New Mexico federal court illustrates.

Employers Mutual Casualty Company insured the Ruidoso Bowling Center under a commercial general liability policy that included a liquor liability exclusion. George Fitzgibbon was killed in an auto accident caused by Jadyn Mow, a Ruidoso customer. Fitzgibbon's survivors brought a wrongful death case, alleging that Ruidoso overserved Mow and caused his intoxication. Employers Mutual later filed a separate lawsuit, denying coverage under the liquor liability exclusion.

The federal court agreed with Employers Mutual. The clear terms of the exclusion meant it had no obligation to provide Ruidoso with a legal defense or pay damages on its behalf for Fitzgibbon's death.

Potential Criminal Liability for the Licensee

Finally, selling or providing alcohol to a minor or someone who's visibly drunk can be both a crime (usually a misdemeanor) and a violation of the dram shop law. If prosecutors file criminal charges against a licensee, your dram shop case likely will be put on hold until the criminal case is resolved.

Get Help With Your Dram Shop Case

At first glance, it might seem that a dram shop case should be easy to prove. After all, you usually have a drunk driver who was served drinks by a liquor licensee who should have known better.

While it's true that juries sympathize with the injured victim in these cases, their sympathy sometimes extends just far enough to hold the drunk driver liable. Many dram shop laws provide ample wiggle room for a licensee to escape without responsibility. Experienced defense lawyers know how to defend these cases. You need a dram shop expert in your corner to make it a fair fight.

If you're ready to get help, here's how to find a dram shop lawyer in your area.