Texas Dram Shop Act Explained: Who Can Sue and When

When a drunk driving accident occurs, the focus often falls squarely on the intoxicated driver. But in some cases, another party may share legal responsibility: the establishment that served the alcohol. Under the Texas Dram Shop Act, bars, restaurants, and other alcohol vendors can be held liable for damages caused by intoxicated patrons but only under specific circumstances.

Understanding the Dram Shop Act is crucial for victims seeking justice after an alcohol-related accident. This legal doctrine provides a powerful tool for injury victims and their families, but its application requires a careful legal strategy and deep knowledge of Texas law.

What Is the Texas Dram Shop Act?

The Texas Dram Shop Act is codified in the Texas Alcoholic Beverage Code § 2.01 to 2.03. It establishes when an alcohol-serving establishment may be held liable for injuries or deaths caused by patrons who were overserved.

The law applies to:

• Bars
• Restaurants
• Clubs
• Liquor stores
• Convenience stores
• Any business licensed to sell or serve alcohol in Texas

The Dram Shop Act aims to balance accountability between individuals and businesses. While intoxicated drivers bear primary responsibility for their actions, establishments that knowingly contribute to excessive intoxication may also be held liable in civil court.

When Can a Bar or Restaurant Be Held Liable?

To hold a business accountable under the Dram Shop Act, the plaintiff must prove two key elements:

1. The patron was obviously intoxicated when served

The Act requires showing that the individual was “obviously intoxicated to the extent that he presented a clear danger to himself and others” at the time the alcohol was provided.

Visible signs of intoxication may include:

• Slurred speech
• Staggering or falling
• Bloodshot eyes
• Aggressive or erratic behavior
• Incoherent or loud speech

This is known in legal terms as “obvious intoxication.”

2. The patron’s intoxication was a proximate cause of the damages

The second prong of the Dram Shop test requires showing that the intoxication was a proximate cause of the injuries or damages in question. That means there must be a direct and foreseeable connection between the overserving and the resulting accident.

For example, if a bartender continues to serve a clearly intoxicated customer, and that customer later drives and causes a fatal car crash, the bar may be held partially liable.

Who Can Sue Under the Texas Dram Shop Act?

Several categories of people may have standing to sue under the Texas Dram Shop Act:

Injured Third Parties

This includes pedestrians, other drivers, or passengers who are injured by an intoxicated individual after being overserved. These are the most common plaintiffs in Dram Shop cases.

Example: A family is driving home when they’re hit by a drunk driver who had just left a local bar. The bar may be sued for overserving the driver if clear signs of intoxication were ignored.

The Intoxicated Person Themselves

Surprisingly, under certain conditions, even the intoxicated individual can file a claim.

However, there is a limitation: The Safe Harbor Rule.

What Is the Safe Harbor Defense?

The Safe Harbor Defense protects alcohol-serving businesses from liability if they meet three conditions:

1. The business requires its employees to attend a Texas Alcoholic Beverage Commission (TABC) approved training program
2. The employee who served the alcohol attended the program
3. The business did not directly or indirectly encourage the employee to violate the law

If all three elements are met, the business may be shielded from liability, even if the patron was obviously intoxicated.

This defense is frequently raised by defendants in Dram Shop cases. A skilled attorney will carefully investigate whether each condition was truly met.

Real-World Examples of Dram Shop Liability in Texas

Example 1: Fatal Crash After a Night Out

A 26-year-old man spends several hours drinking at a popular Austin nightclub. Witnesses say he was stumbling and slurring his words, yet bartenders continued to serve him alcohol. He later drives home and crashes into another vehicle, killing a mother of two. The victim’s family sues the nightclub under the Dram Shop Act, alleging the man was obviously intoxicated.

Example 2: Underage Drinking at a House Party

Although the Dram Shop Act typically applies to licensed vendors, social hosts may also face liability in certain circumstances, particularly when serving alcohol to minors. If a 17-year-old is allowed to drink at a home gathering and then causes a crash, the adults who supplied the alcohol could face both civil and criminal consequences.

What Damages Are Available in a Dram Shop Lawsuit?

Plaintiffs in Dram Shop cases may be entitled to compensatory damages, including:

• Medical expenses
• Lost wages and future earning capacity
• Pain and suffering
• Emotional distress
• Funeral and burial expenses (in wrongful death cases)

In some cases, punitive damages may also be awarded if the defendant’s conduct was particularly reckless or egregious.

Time Limits: How Long Do You Have to File?

Texas imposes a strict two-year statute of limitations for personal injury and wrongful death lawsuits, including those brought under the Dram Shop Act. This means you must file your claim within two years of the accident date.

Failing to act within this window can permanently bar your claim, making it essential to speak with a knowledgeable attorney as soon as possible.

How a Personal Injury Attorney Can Help

Proving liability under the Dram Shop Act is not easy. These cases often hinge on eyewitness testimony, surveillance footage, receipts, and expert analysis to show obvious intoxication and causation.

A skilled attorney can:

• Investigate the timeline of events
• Interview witnesses and obtain sworn statements
• Secure video evidence and point-of-sale data
• Counter Safe Harbor defenses
• Work with toxicology and accident reconstruction experts
• Handle negotiations with insurance companies

Because bars and restaurants often have powerful legal teams and insurance carriers working to minimize liability, victims need strong representation of their own.

Why Choose Dang Law Group for a Dram Shop Claim?

At Dang Law Group, we bring tenacious representation and deep knowledge of Texas personal injury law to every case. Our team has handled complex Dram Shop claims involving catastrophic injuries and wrongful death. We understand the tactics businesses use to avoid responsibility and we know how to hold them accountable.

We serve clients across Austin, Travis County, and throughout Central Texas. If you or a loved one has been harmed by an intoxicated driver, we are ready to fight for the justice and compensation you deserve.

Contact Dang Law Group Today

If you’ve been injured or lost a loved one due to the actions of a drunk driver, don’t wait to explore your legal options. The Texas Dram Shop Act may entitle you to compensation not only from the driver but also from the bar or restaurant that overserved them.

Call Dang Law Group today for a free, no-obligation consultation. Let us help you hold negligent establishments accountable and pursue the financial recovery your family needs to heal.

Call now or contact us online to get started.