Texas Alcohol Liability & Commercial Establishments – Dram Shop

Question:  Can companies like bars and restaurants be sued for serving too much alcohol to a customer?

Last time we talked about social host liability for serving alcohol in the event their guest cause alcohol-related vehicle accidents.  Today, we turn to a related matter – whether business are liable for serving too much alcohol to a customer.

Texas laws include provisions dealing with bars and restaurants serving too much alcohol to a customer.  The specific law is known as the Texas Dram Shop Act.  You can read the text of the law itself by reading the Texas Alcoholic Beverage Code.  Basically, the law places legal liability upon providers who serve alcohol to obviously intoxicated persons.  The standard has been developed to ask whether the intoxicated patron was so drunk they were clearly a danger to themselves or others.  It is important to note that establishments can significantly limit their exposure to liability by ensuring their staff undergoes TABC training. 

Like most laws, devils arise in the details.  For example, who exactly qualifies as a “provider”?  Texas courts have ruled on that question many times.  Under Texas law, wholesale distributors of liquor or beer do not constitute a “provider” under the Dram Shop laws.  Also, a “provider” need not be a licensed alcohol provider to fall under the auspices of the Dram Shop laws.  So, a company can become liable by simply providing liquor at their own company picnic or retreat.  If you have incurred damages or been hurt by someone, and intoxication is a factor, you’ll want to contact a Texas DWI accident victim attorney to have your case evaluated. 

In following posts, we’ll talk about what happens when a drunk driver causes an accident while he’s on the job.