New Mexico is one of the states that allow "dram shop" liability claims by an injured person after an alcohol-related accident. Dram shop laws can be used, in certain circumstances, to hold an alcohol vendor liable for selling or serving alcohol to a person who causes injuries to someone else. In some situations, New Mexico law also permits an injured person to hold a social host liable for providing alcohol to someone who later causes an accident while intoxicated.
Here are some of the basics on New Mexico's third-party liability laws related to injuries and damages caused by an intoxicated person.
Section 41-11-1 of the New Mexico Statutes Annotated contains the state's dram shop law. Basically, the statute allows an injured person to hold a licensed alcohol vendor liable if the vendor sold or served alcohol to an intoxicated person whose intoxication was reasonably apparent.
Here's an example of New Mexico's dram shop law in action. Suppose that Dale stops at Bill's Bar on his way home from work. He has several drinks and begins to slur his speech and has trouble walking. The bartender realizes Dale is drunk, but he continues to serve Dale alcohol anyway. Eventually, Dale attempts to leave the bar, but he stumbles and falls down the bar's front steps, colliding with Patty, who is standing at the bottom of the steps. Patty is injured in the accident.
Under New Mexico's dram shop law, Patty can seek damages from Bill's Bar for continuing to serve Dale even after it was reasonably apparent Dale was intoxicated.
New Mexico law also allows social hosts to be held responsible for the actions of intoxicated guests in some circumstances. The social host liability law states that an injured party can sue a social host for damages if the "alcoholic beverages were provided recklessly in disregard of the rights of others, including the social guest."
Here is a situation in which New Mexico's social host liability might apply. Suppose that in the example above, Dale goes to a party hosted by Hannah, a friend from work. At the party, Dale has several beers from a keg Hannah has provided for the occasion, as well as several strong mixed drinks. Although Hannah notices during the night that Dale has become extremely disoriented and is having trouble walking and talking clearly, she doesn't cut him off. Hannah even encourages Dale to drink more and makes him an especially strong mixed drink. Eventually, Dale tries to drive home. He runs the stop sign at the end of Hannah's block and collides with Pete, a pedestrian, causing serious injuries.
Pete can seek damages directly from Dale for causing the accident. Pete can also bring a social host liability claim against Hannah if he can demonstrate that Hannah provided alcohol to Dale "recklessly in disregard" for the rights of others.
Like other injury claims in New Mexico, a dram shop or social host liability claim must be filed in court within the time limit called the "statute of limitations." Generally, the statute of limitations for these types of claims is three years. However, because each case is different, you should always consult with an attorney as soon as possible after an injury to ensure your rights are protected.
Like other civil claims, liability in alcohol-related accident claims is expressed solely in terms of money damages. Common types of damages dram shop and social host liability claims include compensation for medical bills, property damage, lost wages, and pain and suffering. However, it's important to note that New Mexico limits the amount of damages available in dram shop and social host liability cases. The damage caps in these cases are $50,000 per person or $100,000 per accident for bodily injuries and $20,000 per accident for property damage.