If you or a loved one has been hurt by a drunk driver, you might assume that only the driver is to blame. But under Texas law, bars, restaurants, and other businesses that serve alcohol can sometimes be held accountable, too. This legal rule is known as the Texas Dram Shop Act, and it’s designed to protect victims and encourage businesses to serve alcohol responsibly.
Crosley Law has helped many families understand their rights under Texas Dram Shop Law. Here is what you need to know about your rights and how an experienced Texas car accident attorney can help you receive the justice you deserve.
RELATED: Victim of a drunk driving accident in Texas? Here’s your essential guide
What is dram shop liability?
The term “dram shop” comes from an old word for a bar or tavern where liquor was sold by the “dram” (a small unit of measure).
For a long time, Texas law only held the drunk driver responsible when an alcohol-related crash happened. But in 1987, the Texas Legislature passed the Dram Shop Act, recognizing that businesses profiting from alcohol sales should also take responsibility when they serve someone who’s clearly had too much.
When can a bar or restaurant be held responsible for a car crash?
Under Texas’s Dram Shop Law, a bar, restaurant, nightclub, liquor store, or any other business that sells or serves alcohol can be held legally responsible if:
- They served alcohol to someone who was “obviously intoxicated.” This means the customer showed clear signs of being drunk such as slurred speech, stumbling, bloodshot eyes, or other behaviors that would warn a reasonable person that they shouldn’t keep drinking.
- That intoxication caused someone’s injuries or damages. There must be a direct connection between the drunk customer’s condition and the harm they caused, like a car crash, assault, or property damage.
Dram shop liability is about more than simple carelessness. It’s about businesses ignoring clear danger signs and continuing to serve alcohol anyway.
Is serving alcohol at a house party liable under the dram shop law?
Many people wonder if they can sue someone who hosted a party where a drunk guest caused an accident.
In most cases, no. The Texas Dram Shop Act applies only to businesses with a license to sell or serve alcohol. It does not apply to private individuals or “social hosts” who provide drinks at home.
However, there’s one key exception: Adults who provide alcohol to minors (under 18) who are not their own children can be held liable if the minor becomes intoxicated and causes injury or damage.
How do bars and restaurants try to avoid liability?
Texas law gives businesses a special legal defense called the Safe Harbor Defense.
To use this defense, a business must prove:
- It required employees who serve alcohol to complete an approved training program
- The employees completed the training
- The business didn’t encourage or pressure staff to break the rules (for example, by rewarding them for selling lots of drinks)
If a bar meets all three requirements, it can usually avoid liability even if a customer causes a crash later.
A summary of dram shop law liability
Here’s how liability under dram shop laws has often worked in specific situations:
- Bar over-serving a drunk customer: A bar keeps serving drinks to a customer who is visibly drunk—stumbling, slurring, and unable to walk straight. The customer then leaves, drives away, and causes a serious crash. The bar can be held responsible for continuing to serve that customer.
- Safe Harbor Defense protecting a business: A restaurant properly trains its staff, has clear policies in place, and discourages over-serving. Even if an accident happens, the business may avoid liability under the Safe Harbor defense.
- Serving alcohol to minors: An adult knowingly gives alcohol to a minor at a private event, and the minor (someone other than their own child) gets into a drunk driving crash. That adult can be held legally responsible.
What compensation can you recover from a personal injury claim?
If you bring a personal injury claim to a third party through the Texas Dram Shop Law and win, you may be able to recover:
- Medical expenses (past and future)
- Lost wages and loss of future earning capacity
- Pain and suffering damages
- Property damage expenses (such as damage to your vehicle)
Punitive damages, which are costs a judge or jury might add on top of the above expenses to punish a business for wrongdoing, are not available under the Texas Dram Shop Act. However, other liable parties might be eligible for punitive damages.
RELATED: What is an average settlement for a Texas drunk driving accident?
Why you need an experienced personal injury lawyer
Dram shop cases are often complicated. You’ll need evidence showing:
- How drunk the person was when they were served
- What the staff and management at the bar or restaurant knew
- Whether the business met the Safe Harbor requirements
- Whether the intoxication caused the crash or injury
Businesses and their insurance companies often fight these cases aggressively. You need an experienced legal team that knows how to investigate, gather strong evidence, and hold irresponsible businesses accountable.
At Crosley Law, we have years of experience handling Dram Shop claims. We know what to look for, how to build a powerful case, and how to fight for the compensation you and your family deserve.
Have you been hurt by a drunk driver? Call Crosley
If you or a loved one has been injured or killed by a drunk driver—and you believe a bar or restaurant may have played a role—you may have the right to bring a claim under the Texas Dram Shop Law.
Contact Crosley Law today for a free consultation. We’ll listen to your story, explain your legal options in plain language, and help you fight for the justice and compensation you need. Fill out our online contact form or call our office at (210) 625-8380 to get started.
About Crosley Law
Crosley Law is a nationally respected personal injury firm based in San Antonio, Texas. Led by Tom Crosley, our team has secured major settlements and verdicts for clients harmed by drunk drivers and negligent businesses. We combine cutting-edge legal strategies with compassionate client care—because we believe every client deserves both skillful advocacy and personal attention.
References
Texas Alcoholic Beverage Code, Sections 2.01-2.03. (2005). Retrieved from https://statutes.capitol.texas.gov/Docs/AL/htm/AL.2.htm
The content provided here is for informational purposes only and should not be construed as legal advice on any subject.
