barowners
The dram shop dilemma
The “Dram Shop Law” originally referred to a law pertaining to bars, saloons, and any other establishments where alcoholic beverages were sold to the public. Today statutes and case law refers to dram shop liability, specifically causes of action which arise after a customer has consumed alcoholic beverages at a much wider range of venues, including bars and restaurants, but also including private homes.
This distinction has given rise to two types of dram shop liability under dram shop laws, commercial host liability and social host liability. All 50 states have different laws regarding liability depending on whether the server was a commercial or a social host. As a proactive nightclub or bar operator, it’s wise to know where you stand at your location because nearly all states enforce some form of the law.
