Dram Shop Liability

Dram shop liability is an often misunderstood and underappreciated area of law. Georgia is one of 30 states that follow a Dram Shop Liability Law.

A dram shop case is a legal claim focused on the allegation of over-serving alcoholic beverages. A host or bartender may have legal liability if they continue to serve alcoholic beverages to a person who is obviously intoxicated (or close to it) and that person injures a 3rd party.

The Georgia General Assembly passed the Georgia Dram Shop Act (O.C.G.A. § 51-1-40) in 1988. This act codified the Georgia Supreme Court’s decision in Sutter v. Hutchins, 254 Ga. 194. In essence, this particular statute eliminates the legal distinction between commercial vendors and individual social hosts. Business and social host liability are dealt with the same in eyes of Georgia's legal system. One notable exception is that Georgia’s Dram Shop Act does not allow a drunk driver to pursue a dram shop or social host claim, but does allow an innocent party injured by that drunk driver to bring a lawsuit against the vendor or social host.

A bar, liquor store, restaurant or similar business can obtain a liquor license without any requirement of liability insurance. The benefit of liability insurance is important for patrons and employees of the business. If a dram shop case arose, the insurance would pay the cost of defense, any settlement or any adverse judgment. Not only does Georgia not require establishments to have liability insurance, but even businesses that carry liability insurance may have a policy that includes an exemption for dram shop claims. This leaves the injured party at risk of never recovering the damages they are awarded if they win their case and exposes the assets of the business to the liability claim.

The provisions of O.C.G.A. § 51-1-40 et seq., the Georgia Dram Shop Act (“Georgia Dram Shop Act”) are narrowly tailored as to the persons who can be held liable and as to the circumstances under which an individual may be held liable in a dram shop case. The Act limits liability to a person who willfully, knowingly and unlawfully sells, furnishes or serves alcoholic beverages to a person who is not of lawful drinking age, knowing that such person will soon be driving a motor vehicle or to a person “who knowingly sells, furnishes, or serves alcoholic beverages to a person who is in a state of noticeable intoxication, knowing that such person will soon be driving a motor vehicle, may become liable for injury or damage caused by or resulting from the intoxication of such minor or person when the sale, furnishing, or serving is the proximate cause of such injury or damage.….”

In sum, an individual person may be liable under the Georgia Dram Shop for underage sales that meet the other elements or if these five elements are established: (1) knowingly sells, furnishes or serves alcoholic beverages; (2) to a person who is in a state of noticeable intoxication; (3) knowing that such person will soon be driving a motor vehicle; (4) injuries and damages are caused by or result from the intoxication of such person; and (5) the sale, furnishing or serving is the proximate cause of the injury or damage at issue.

The attorneys of York Gaskill handle dram shop matters and have the experience and expertise to help guide you through a dram shop liability case. When we handle your personal injury claim , there are no fees unless you win. Call us at 678.697.6789 or send us a message for a free consultation.