Establishments that serve alcohol often face a delicate balance between offering hospitality and risking liability. In the Lone Star State, multiple parties can raise a dram shop liability claim, casting a wide net of potential challenges for businesses. Depending on the circumstances surrounding the case, accident victims, their family members, and even the drunk driver themselves may have grounds to file a claim for compensation. However, dram shop liability cases can be challenging for the plaintiff to prove, especially if you have a skilled attorney on your side.
At Fahl & Donaldson, our attorneys are dedicated to helping you shield your business from liability. We understand how challenging facing a dram shop liability claim can be, and will support you throughout the legal process. When you partner with one of our attorneys, we will advocate for the best possible outcome on your behalf.
Who Is Eligible to File a Texas Dram Shop Liability Claim?
When an individual is overserved at a bar or restaurant and later causes an accident, Texas’ dram shop liability law may come into play. However, only specific individuals have the right to file a claim, including:
Victims of a Drunk Driving Accident
In addition to filing a claim against the driver who injured them, drunk driving accident victims may be eligible to file a third-party claim against the establishment that served the driver. However, the plaintiff must be able to prove that the driver was visibly intoxicated and overserved.
The Drunk Driver
If a drunk driver is injured in an accident, they may attempt to allege that their injuries were caused by your business. These are known as first-party dram shop liability claims. These claims assert that the driver would not have driven drunk if they were not overserved, and therefore, the bar or restaurant should be held liable for their injuries.
Family Members
If a drunk driving accident victim lost their life in the collision, their surviving family members may have grounds to seek wrongful death damages from the bar or restaurant. However, if their attorney cannot prove the driver was overserved, your business cannot be held liable for damages.
How Can an Experienced Attorney Protect Your Business Against a Dram Shop Liability Claim
At Fahl & Donaldson, we have extensive experience employing several different defense strategies to protect Texas businesses. Depending on the unique details of your case, your attorney may examine one of the following defenses:
- Your employee acted negligently despite being trained to serve customers appropriately.
- The accident was not caused by the driver being overserved at your establishment.
- The injured individual took a known risk, such as getting behind the wheel while intoxicated.
- The injured individual failed to take precautions to mitigate their damages, such as wearing a seatbelt.
We will analyze every detail of your case to determine which strategy is the best fit for your case. Our attorneys understand there is no one-size-fits-all solution to these claims and will personalize their approach to your unique case.
Why Documentation and Staff Training Records Matter Before a Claim Is Ever Filed
The strength of a dram shop defense is often decided long before a claim is filed, based on what your business can document. Section 106.14 of the Texas Alcoholic Beverage Code establishes a “safe harbor” that requires an employer to show three things: it required its employees to attend a TABC-approved seller training program, the employee who served the patron actually attended that training, and the employer did not directly or indirectly encourage the employee to break the law.
It is worth understanding the limits of this defense as well. Safe harbor most reliably protects a business from TABC administrative penalties, like fines or a license suspension. Courts have been stricter about how far it extends in a civil dram shop lawsuit, so satisfying the training requirements helps your position but is not, on its own, a guarantee against civil liability. Keeping current, dated training certificates for every employee who serves alcohol, along with point-of-sale records and any incident logs, still gives your attorney far more to work with than a business that cannot produce this documentation after the fact.
Speak With a Seasoned Dram Shop Liability Attorney at Fahl & Donaldson
A Texas dram shop liability case can feel legally dense, but it also involves preserving your business’s legacy and good name. At Fahl & Donaldson, our attorneys are dedicated to safeguarding your business and everything you’ve built. We have over 100 years of combined experience and are ready to advocate for you.
To schedule a consultation with a seasoned legal professional, complete our contact form. You can also review our Houston dram shop liability statistics to better understand how often these claims arise across Texas.
Frequently Asked Questions About Texas Dram Shop Claims
Does completing TABC seller training automatically protect my business from a civil dram shop claim?
Not automatically. The statutory safe harbor most reliably shields a business from TABC administrative penalties, and courts apply it more strictly in civil lawsuits. Meeting the training and non-encouragement requirements strengthens your position, but it is not a guaranteed defense to a civil claim on its own.
Can a first-party claim from the intoxicated driver actually succeed against my business?
These claims are possible under Texas law, but the driver must still prove they were visibly overserved to a degree that presented a clear danger. A well-documented service record and trained staff make this a difficult claim to sustain.
What records should my business keep to support a dram shop defense?
Current employee training certificates, point-of-sale or tab records showing how much a patron was served, incident reports, and any documentation of refusals to serve visibly intoxicated patrons are all valuable if a claim is filed later.
Can family members of someone who caused a drunk driving accident file a claim too?
If the intoxicated person died in the accident, their surviving family members may have grounds to bring a wrongful death claim against the establishment, but they still must prove the person was overserved to a degree presenting a clear danger.
How long does my business have to respond once served with a dram shop lawsuit?
Texas civil procedure sets specific deadlines to file an answer once you are served, and missing that deadline can result in a default judgment. Contacting an attorney as soon as you are served helps make sure that deadline is not missed.