Dram Shop Liability: Elements of Texas Plaintiff Litigation
Businesses serving alcohol in Texas have a legal obligation to prevent overconsumption and underage drinking, as well as to protect their customers from harm. Implementing strategies such as training staff to identify intoxicated individuals, checking IDs, and refusing service when necessary is crucial for promoting responsible alcohol service.
Dram shop liability in Texas is governed by the Texas Alcoholic Beverage Code. Under this law, a business that sells or serves alcoholic beverages can be held liable for damages caused by an intoxicated person if certain conditions are met. To establish liability, the injured party must prove that:
(1) The provider served alcohol to a person who was obviously intoxicated to the extent that they presented a clear danger to themselves and others.
(2) The intoxication was a proximate cause of the injury or damages.
Sec. 2.02 (a) Causes of Action. This chapter does not affect the right of any person to bring a common law cause of action against any individual whose consumption of an alcoholic beverage allegedly resulted in causing the person bringing the suit to suffer personal injury or property damage.
Sec. 2.02 (b) Providing, selling, or serving an alcoholic beverage may be the basis of a statutory cause of action under this chapter and may be the basis of a revocation proceeding under Section 6.01(b) of this code upon proof that:
(1) At the time the provision occurred it was apparent to the provider that the individual being sold, served, or provided with an alcoholic beverage was obviously intoxicated to the extent that he presented a clear danger to himself and others; and (2) the intoxication of the recipient of the alcoholic beverage was a proximate cause of the damages suffered.
The Texas Alcoholic Beverage Code (TABC) contains two important definitions to establish the “Provider” and the “Provision” must help explain how the Dram Shop Law works.
(1) TABC defines a "provider" as "a person who sells or serves an alcoholic beverage under authority of a license or permit issued under the terms of this code or who otherwise sells an alcoholic beverage to an individual.
(2) TABC "provision" definition includes, but is not limited to, the sale or service of an alcoholic beverage."
In Texas, a Plaintiff Must Prove:
• The defendant sold, served, or provided alcohol to the intoxicated person
• The defendant knew or should have known that the person was intoxicated
• The intoxication was a proximate cause of the damages suffered
The amount of alcohol consumed is important to your case because thiscan demonstrate to a jury that, based on the volume of alcohol supplied to an individual in a given time span, it is more likely than not that the establishment knew or should have known that the person was intoxicated. This can be demonstrated through the dollar amount sold or the number of drinks purchased. For example, one person spending $100.00 an hour on alcohol or ordering 10 drinks in an hour could lead one to reasonably conclude that the patron was intoxicated long before the 10th drink, and therefore the bar violated the law by serving them more. The evidence of the amount of alcohol consumed can come either in the form of time and date stamped receipts showing the number of drinks purchased or direct testimony from other patrons or guests.
Rate of Alcohol Consumption: How quickly one consumes drinks can be key in illustrating the level or point at which they become intoxicated. For example, if a certain number of drinks are consumed in a shorter span, medical science tells us that the drinker will become more intoxicated than if the same number of drinks is consumed over a longer span. This is because, when drinks are consumed over a short
time frame, the body does not have the time to metabolize the alcohol that has been consumed, so the intoxicating effect compounds. Evidence of the time frame that the alcohol was consumed can be demonstrated through time and date stamped receipts and eyewitness testimony.
Customer Appearance: The appearance of the person that is consuming the drinks can be a sign of
intoxication as well. If they appeared at the bar already smelling of alcohol or had a strong odor of alcohol
on their breath, one could reasonably believe they were intoxicated. Blood shot eyes, stumbling,
trembling hands, slurred speech, and a disheveled appearance can all be signs indicating intoxication.
Servers of alcohol are required by law to be on the lookout for these signs. If we can prove through
eyewitness testimony, video surveillance footage, or (most commonly) through the bartenders and servers
admitting that they witnessed the drinker displaying such signs, then we are well on our way to
establishing that they knew the patron was already intoxicated at the time of service.
Customer Behavior: When someone's behavior suddenly changes or there is a sudden confrontation
between them and the other patrons, this can be a sign of intoxication. If someone was originally mild
mannered but is now acting belligerent, rude, or obnoxious, and this change has occurred over the course
of their drinking in an establishment, this can be a sign of intoxication. However, the behavior does not
necessarily have to be negative. A person that suddenly becomes more friendly or emotional could be
intoxicated as well. Responsible bars and restaurants train their employees to be aware of these signs so
they can tell when a patron needs to be cut off. When these signs are ignored and a person that seems
intoxicated is continuously served alcohol regardless, the establishment serving them could be liable for
any resulting injuries caused by that intoxicated person.
Eyewitness Testimony: Witness statements are valuable evidence in dram shop liability cases.
Eyewitnesses who observed the intoxicated individual being served alcohol can provide critical testimony
regarding their level of intoxication and behavior. The credibility of these witnesses can play a significant
role in establishing liability
Video Surveillance: Many establishments have surveillance cameras installed for security. In an incident,
video footage can serve as compelling evidence. It helps establish the timeline of events, document the
patron’s intoxication level, and capture any interaction between the patron and the establishment’s staff.
Alcohol Service Records: Establishments that serve alcohol must maintain records of their liquor sales.
These records can include receipts and bar tabs, providing crucial evidence of the amount and frequency
of alcohol served to the patron. By reviewing these records, it may be possible to establish that the
establishment continued to serve alcohol to an intoxicated individual, thereby breaching their duty of care.
Blood Alcohol Concentration: If an intoxicated individual is involved in an accident, law enforcement
may conduct a blood alcohol concentration (BAC) test. This test measures the alcohol level in the
person’s bloodstream during the incident. The results of a positive BAC test can be powerful evidence in
a dram shop liability case, as it can establish that the individual was indeed intoxicated and potentially
prove that the establishment over served them.
Incident reports If an incident involving an intoxicated individual occurs at an establishment, the
establishment must document the details in an incident report. This report can provide valuable
information about the individual’s behavior, any visible signs of intoxication, and any actions taken by the
establishment’s staff.
ABOUT THE AUTHOR: Preston Rideout
With 25 years of experience and 126 alcohol safety certifications, Preston Rideout is a recognized leader in bar operations. As CEO of Rideout Hospitality and Founder of Dram Shop Experts, he has consulted with over 250 restaurants, nightclubs, and bars. Preston provides expert witness testimony in cases related to alcohol service, policy and procedure, bartender training, operations, and management oversight, ensuring that industry standards are upheld and legal compliance is achieved.
Copyright Dram Shop Experts
Disclaimer: While every effort has been made to ensure the accuracy of this publication, it is not intended to provide legal advice as individual situations will differ and should be discussed with an expert and/or lawyer.For specific technical or legal advice on the information provided and related topics, please contact the author.
