What Is A Texas Dram Shop Law?
Understanding Dram Shop Liability in Texas
If a bar, restaurant, club, or other establishment serves alcohol to someone who is already obviously intoxicated and that person later causes harm to themselves or others, the establishment may be legally responsible for the resulting damages. This legal responsibility falls under Texas Dram Shop Law.
In Texas, dram shop cases often arise after drunk driving accidents, but they can also involve assaults, falls, or other injuries caused by an overserved patron. While it’s possible to pursue a claim against the at-fault driver or individual directly, the law also allows victims to seek accountability from the business that enabled the dangerous behavior.
Carrollton Injury Law helps injured victims navigate this complex area of law, investigate the facts, and pursue maximum compensation from all responsible parties.
The Origin of Dram Shop Laws
The term “dram shop” comes from an old English unit of measurement for alcohol called a dram. In the 18th and 19th centuries, taverns and pubs were sometimes called “dram shops.” Today, dram shop laws in the United States hold alcohol-serving businesses accountable when they sell or serve alcohol to someone who is clearly intoxicated, leading to foreseeable harm.
Texas codified its dram shop law in the Texas Alcoholic Beverage Code, which applies statewide.
Texas Dram Shop Act: The Basics
Under Texas Alcoholic Beverage Code § 2.02, an alcohol provider can be held liable if:
The establishment sold or provided alcohol to someone who was obviously intoxicated to the extent they posed a clear danger to themselves or others, and
The intoxication was a proximate cause of the damages suffered by the victim.
This means two elements must be proven:
The customer’s intoxication was obvious at the time they were served.
That intoxication directly contributed to the injuries or death.
Examples of Dram Shop Cases
Dram shop cases in Texas can include situations where:
A bar serves multiple drinks to a customer who is slurring speech, stumbling, or unable to pay attention, and that customer drives away and causes a serious crash.
A restaurant continues serving alcohol to a patron who is visibly impaired, and that patron later gets into a fight, injuring someone.
A club serves alcohol to someone who is already over the legal limit, leading to a fall or other accident that harms themselves or others.
While drunk driving accidents are the most common basis for dram shop claims, the law is not limited to vehicle crashes.
Proving "Obvious Intoxication"
In a Texas dram shop case, the burden of proof lies with the injured party. You must show the alcohol provider knew or should have known the person was drunk when they were served.
Evidence can include:
Witness testimony (servers, other patrons, accident witnesses)
Video surveillance from the bar or restaurant
Receipts showing excessive alcohol purchases in a short timeframe
Blood alcohol concentration (BAC) test results
Physical signs: bloodshot eyes, poor coordination, loud or erratic behavior, stumbling, or slurred speech
Establishing obvious intoxication is often one of the most challenging parts of a dram shop case, which is why an experienced Texas personal injury lawyer can be crucial.
Who Can Be Held Liable?
Under Texas law, the following can potentially be held liable in a dram shop claim:
Bars, clubs, and pubs
Restaurants
Event venues
Hotels
Caterers
Any business with a license to sell or serve alcohol
In addition, Texas has a related “social host” law that can apply to adults (18+) who knowingly serve alcohol to minors under 18 who are not their children.
Texas’s “Safe Harbor” Defense
Alcohol-serving establishments sometimes use the Safe Harbor Defense to avoid liability. To successfully claim safe harbor, the business must prove:
The employee who served the alcohol was certified by the Texas Alcoholic Beverage Commission (TABC).
The employer did not directly or indirectly encourage the employee to violate the law.
The employer required all servers to attend TABC-approved training.
If an establishment meets all these requirements, they may escape liability — unless there is strong evidence that the business ignored or encouraged overserving.
How Dram Shop Claims Work in Texas
Step 1: Investigation
The first step is gathering evidence from both the accident and the establishment that served alcohol. This may involve interviewing witnesses, securing surveillance footage, and reviewing transaction receipts.
Step 2: Identifying All Liable Parties
You may have claims against:
The drunk driver or intoxicated person
The establishment that overserved them
Event organizers or hosts (in some cases)
Step 3: Filing the Claim
Dram shop claims are typically filed as civil personal injury or wrongful death lawsuits. In Texas, you generally have two years from the date of the injury to file, but acting quickly improves your chances of preserving key evidence.
Step 4: Negotiation or Trial
Many cases settle before trial. However, if the establishment disputes liability, your attorney may take the case to court to seek a judgment.
Damages You May Seek in a Texas Dram Shop Case
While no lawyer can guarantee a specific outcome, victims in successful dram shop claims often pursue damages for:
Medical bills (past and future)
Lost wages and loss of earning capacity
Pain and suffering
Mental anguish
Property damage
Loss of companionship or consortium (in wrongful death cases)
Why Dram Shop Cases Can Be Challenging
Dram shop claims are not straightforward. Establishments often have aggressive insurance defense teams, and proving “obvious intoxication” can be difficult without early, thorough investigation.
Some of the common challenges include:
Witnesses forgetting details or being unwilling to testify
Lost or erased surveillance footage
Establishments denying overserving occurred
Safe Harbor defenses
Working with a legal team familiar with Texas dram shop litigation helps you build a stronger case from the beginning.
Carrollton Injury Law: Putting Personal Back Into Personal Injury Law
At Carrollton Injury Law, we understand the devastating impact drunk driving and overserving can have on victims and families. We treat every case personally, keeping you informed, explaining each step in plain language, and pursuing maximum compensation from every responsible party.
We believe in direct attorney access, prompt communication, and a client-first approach that puts your recovery at the center of our strategy.
If you’ve been injured — or lost a loved one — because a Texas establishment served alcohol to someone who was clearly intoxicated, you may have the right to hold that business accountable. We are ready to investigate, build your case, and fight for justice.
Frequently Asked Questions About Texas Dram Shop Law
1. What is the legal BAC limit in Texas?
The legal blood alcohol concentration (BAC) limit in Texas is 0.08% for drivers aged 21 and over. However, dram shop liability focuses on “obvious intoxication,” which can be proven even if a BAC test is not available.
2. Can I sue both the drunk driver and the bar?
Yes, if evidence supports it, you can pursue claims against both the intoxicated person and the establishment that overserved them.
3. How long do I have to file a dram shop lawsuit in Texas?
Generally, you have two years from the date of the incident to file, but acting quickly can preserve valuable evidence.
4. What if the drunk person was under 21?
Texas law makes it illegal to serve alcohol to anyone under 21. If an establishment served a minor who then caused harm, that can strengthen your dram shop case.
5. Do I need a lawyer for a dram shop claim?
While not legally required, dram shop cases are complex. Having an experienced attorney can greatly improve your chances of proving liability and recovering compensation.
If you or a loved one has been injured due to overserving at a Texas establishment, don’t wait for evidence to disappear. Contact Carrollton Injury Law today for a free injury claim evaluation and learn your options for seeking justice
