What is the Texas Dram Shop Act?
The Texas Dram Shop Act is the exclusive legal remedy for holding alcohol providers accountable when someone they serve becomes intoxicated and then causes injury to another person. It allows victims of alcohol-related accidents to pursue compensation from establishments that served the alcohol, ensuring accountability and promoting safer practices in commercial alcohol service. Under Texas Alcoholic Beverage Code Section 2.02, the law applies in two main situations: when a commercial provider serves an obviously intoxicated adult, or when any adult provides alcohol to a minor under the age of 18.
Serving Intoxicated Adults
To bring a claim for serving an intoxicated adult, the injured party must show that the provider sold or served alcohol to an adult and that it was apparent to the provider that the adult was visibly intoxicated. The intoxication must have directly caused the injury. Liability applies to commercial providers such as bars, restaurants, or clubs, but not social hosts at private parties or employers who serve alcohol at work events.
The law does not require the server to have personally observed the intoxication. Evidence can include receipts, physical signs, behavior changes, testimony from companions, expert testimony, or established habits of the provider. Importantly, the law does not allow for exemplary damages in these cases.
Safe Harbor Defense for Trained Servers
Texas law provides a safe harbor for providers whose employees have received TABC-approved seller training. To claim this defense, the employer must show that trained employees were on duty when the intoxicated patron was served and that the employer did not encourage over-serving.
This defense can be overcome if the plaintiff demonstrates that the provider directly or indirectly encouraged excessive alcohol consumption. Examples include rewarding overservice, modeling unsafe behavior, failing to discipline employees for serving intoxicated patrons, or imposing excessively high sales quotas without regard to safety.
Courts have reinforced individual liability under the Act. In Galindo v. Garner, a bartender was held personally responsible for overserving. Meanwhile, in D. Houston v. Love, the court held that if an employer requires alcohol consumption as part of the job, the Dram Shop Act is not the only remedy for injuries caused by intoxicated employees.
Serving Minors Under 18
The Dram Shop Act also imposes liability on adults who serve alcohol to minors. To establish a claim, the following must be shown: the server was at least 21 years old and not the minor’s parent, guardian, spouse, or custodian; the server knowingly provided alcohol to the minor; the alcohol contributed to the minor’s intoxication; and the minor’s intoxication directly caused injury.
Cases like Reeder v. Daniel clarify that social hosts generally do not have liability for serving minors, focusing liability on commercial providers.
