What is the Dram Shop Act in Indiana?

If you get hurt in an alcohol-related accident in Indiana, the Dram Shop Act allows you to hold certain parties responsible besides the intoxicated person. In some cases, you could have claims against the drunk person who hurt you and other parties that sold or served them alcohol before the crash.

A knowledgeable lawyer from Truitt Law Offices can help you seek compensation after a drunk driving accident by identifying all negligent parties, including businesses that supplied alcohol to the at-fault driver. Our legal team has been helping Indiana individuals and families recover from severe injuries and devastating losses for over 40 years. We know DUI accidents can result in life-changing injuries. Our job is to hold every responsible party accountable for what happened to you.

To learn more about your legal options, please read on or contact our firm for a free initial consultation.

What Is a Dram?

A dram is an old term for a small drink of alcohol, typically whiskey or another spirit. The term also refers to the amount of alcohol that a bartender pours when someone orders a drink of an alcoholic spirit. The word “dram” dates back to the 15th century. It came from the Old French word “dragme,” which itself developed from the Latin and Greek words “dragma” and “drachma,” referring to the principal silver currency of Ancient Greece.

In the apothecaries’ measurement system used in the U.S., a dram equals one-eighth of an ounce. However, the word “dram” has come to refer to a single serving of alcohol, leading to the term “dram shop.”

What Are Dram Shops?

The phrase “dram shop” dates back to the 18th century. It referred to any commercial establishment that served alcohol, including bars, restaurants, taverns, or inns. Today, the term is used in statutes and court precedents under state law that govern liability when someone supplies alcohol to others who then cause property damage, injuries, and deaths. Establishments subject to states’ dram shop laws include bars, restaurants, nightclubs, liquor stores, social clubs, or even private parties held at someone’s home or in a rented event venue.

What Is Indiana’s Dram Shop Act?

The Dram Shop Act in Indiana states that a party who provides alcohol to a person will not bear liability for injuries or property damage that occurs due to their intoxication unless:

• The party supplies alcohol to a visibly intoxicated person, and
• The person’s intoxication causes property damage, injury, or death

Proving a person’s intoxication under dram shop laws may require evidence showing that whoever served alcohol to the intoxicated person noticed signs of intoxication, such as:

• Slurred speech
• Difficulty walking or keeping balance, including staggering, stumbling, tripping, or falling over
• Glassy, bloodshot eyes
• Aggressive, belligerent, or otherwise inappropriate behavior
• Falling unconscious

Other evidence that may prove liability under the Dram Shop Act includes surveillance footage, eyewitness testimony, or receipts for alcoholic beverages served to the intoxicated person.

How Does the Dram Shop Act Affect a Seller or Server of Alcohol?

The Dram Shop Act imposes a duty of care upon furnishers of alcohol, including establishments and social hosts. This duty requires people who sell or serve alcohol to stop providing alcohol to someone who displays visible signs of intoxication.

Establishments and social hosts must familiarize themselves with visual signs of alcohol intoxication, such as slurred speech, glassy eyes, or decreased motor coordination, to know when to stop serving alcohol. They should also pace customers’ or guests’ alcohol consumption. When someone consumes multiple drinks in a short period, an establishment or social host should recognize that they are or soon will be intoxicated to the point that they cannot safely operate a motor vehicle.

For example, let’s say someone leaves a bar or restaurant in their vehicle and causes a drunk driving accident. The Dram Shop Act may impose liability on the establishment if their bartender served several drinks to them, noticed visible signs of intoxication, and continued to serve them alcohol. Dram shop laws can also leave someone who throws a party at their home liable for a drunk driving accident. The social host may continue to refill a guest’s drink despite noticing signs of intoxication, and that guest then injures someone in an accident or altercation. In that case, they could be held responsible for the victim’s injuries and losses.

What Does the Indiana Dram Shop Act Mean to a Person Injured by a Drunk Driver?

The Indiana Dram Shop Act allows an injured victim of a drunk driving accident to pursue compensation from whoever served alcohol to the driver. A dram shop claim gives an injured accident victim another avenue to seek financial recovery for their injuries and losses. This option is in addition to pursuing a personal injury claim against the drunk driver who hit them. Drunk driving accident victims might recover full compensation by pursuing a claim against a commercial establishment, which may have the financial resources and insurance coverage to fully compensate them.

A drunk driving accident victim who can prove that an establishment or social host continued to serve alcohol to someone after recognizing visible signs of intoxication may have the right to file a dram shop claim to recover compensation for:

• Medical treatment and rehabilitation expenses, including those related to emergency care, hospital stays, surgeries, prescription medications, pain management, purchases of medical or orthopedic equipment, and physical or occupational therapy
• Long-term care costs when injuries result in prolonged or permanent disability, including costs associated with home health, housekeeping, and the purchase and installation of disability accommodations
• Lost income resulting from missed work or the need to work in a lower-paying part-time or light-duty role while recovering
• Lost future earning capacity if the accident caused permanent disabilities
• Physical and emotional pain and suffering

In rare cases, a drunk driving accident victim may also receive an award of punitive damages in a dram shop claim. For example, a jury might award punitive damages against a social host who intentionally pushes a visibly intoxicated guest into participating in drinking games despite knowing that the guest will leave the party by driving. Unlike other types of financial recovery in personal injury claims, punitive damages do not compensate an accident victim for financial or personal losses. Instead, they punish a liable party for egregious, shocking conduct and deter others from similar conduct in the future.

Does the Dram Shop Law Apply Only to Businesses That Serve Alcohol?

No. The Indiana Dram Shop Act applies to any party that serves alcohol, whether a private individual or a commercial establishment. Under the Act, anyone who knowingly provides alcohol to an intoxicated person can be held responsible if the drunk person causes an accident that injures or kills another.

Potentially liable parties under the Dram Shop Act include those who own or control restaurants, liquor stores, bars, or convenience stores that sell alcohol. People who serve alcohol to others at private events, such as at company gatherings or a dinner party at home, may be liable according to Indiana dram shop laws.

To hold an alcohol vendor or server liable in a dram shop liability claim, you must show they knew (or should have known) the person who harmed you was intoxicated at the time of sale or service. You can do so by showing there was visible evidence of intoxication, such as bloodshot eyes, slurred speech, unsteady walking, or the smell of alcohol on the breath.

Are There Certain Elements That Need to Be Proven for a Dram Shop Law Claim?

Yes. You must prove two key elements for a successful dram shop claim in Indiana. First, you must show that the establishment or social host knowingly furnished alcohol to a visibly intoxicated person. Then you’ll need to prove that the intoxication of the person who was given the alcohol contributed to your injuries.

Let’s say a host of a house party sees someone is intoxicated yet continues to serve them alcoholic beverages. After leaving the party, the guest causes a drunk driving accident that injures someone else. In that case, you would need to prove the host knew their guest was dangerously drunk when serving them and that the guest’s intoxication was a proximate cause of your injuries.

Can the Intoxicated Person Also File a Dram Shop Law Claim?

No. If someone 21 or older gets hurt while voluntarily intoxicated, they cannot bring a claim against the social host or commercial establishment that served them. Similarly, if a voluntarily intoxicated adult dies after being served alcohol, their surviving dependents, personal representative, and heirs are prohibited from filing dram shop liability claims.

Can I File Both a Personal Injury Claim and a Dram Shop Liability Claim?

Yes. You can file a personal injury claim against a drunk individual who hurts you in a DUI accident. You can also file a claim under the Dram Shop Act against an individual or establishment that provided the alcohol to the individual who harmed you.

To bring a successful claim under the Dram Shop Act, you must establish that the individual that supplied the alcohol — whether a bartender at a restaurant or the host of a dinner party — served the drunk person even though they were visibly intoxicated. You also need to prove that the other person’s preventable and dangerous level of intoxication directly contributed to your injuries.

Here’s a real-world example: John joins his friends for happy hour at a bar after work. During that time, the bartender serves him 10 cocktails, even though John is staggering around and slurring his words. Later, John drives home and causes a drunk driving accident that injures Ashley. In that case, Ashley could file a personal injury claim directly against John and a dram shop lawsuit against that bar that overserved him.

Because you must satisfy certain elements to have a valid claim under the Dram Shop Act, you should always work with a trusted lawyer who can analyze the circumstances of the accident and develop your case. Your attorney will gather compelling evidence by reviewing police reports, obtaining toxicology test results, and speaking to witnesses who saw you get hurt.

Is There a Time Limit for Filing a Dram Shop Law Lawsuit?

Dram shop liability lawsuits are subject to a two-year time limit. The clock starts running on the date of the accident. If you try to file your claim after the deadline, you lose the right to compensation altogether. Two years might sound like plenty of time, but it takes time to investigate the specifics of your case, gather and preserve evidence, interview witnesses, and prepare a lawsuit. The sooner you consult a dram shop lawyer in Indiana, the more time they’ll have to fine-tune your case and demand full and fair compensation for your losses.

Contact an Indiana Car Accident Lawyer

If you got hurt in a DUI accident or another incident involving a dangerously intoxicated individual, the Indiana injury lawyers at Truitt Law Offices are here to help you fight for maximum compensation from the responsible party(s). We will examine every aspect of your situation and determine whether the Dram Shop Act applies to you.

You deserve accountability from the drunk driver and the people who enabled them. Contact us today to speak with a skilled car accident lawyer.

Visit Our Indiana Car Accident Law Offices