Understanding Dram Shop Laws in Texas: Can Bars Be Liable for DUI Accidents?

Drunk driving accidents are among the most devastating collisions on Texas roads and they’re also among the most preventable. When a drunk driver causes serious injuries or death, it’s easy to focus solely on the driver’s actions. But in some cases, the bar, restaurant, or establishment that overserved that person may also be held accountable under Texas law.

These types of cases fall under what’s known as Texas Dram Shop Laws. This set of laws allow victims to hold alcohol-serving businesses (and sometimes social hosts) legally responsible when their negligence contributes to a drunk driving accident.

At Scott Callahan & Associates, we’ve helped countless Texans understand their rights in DUI-related injury cases. Here’s what you need to know.

What is a “Dram Shop” Law?

The term “dram shop” comes from an old British word for a unit of alcohol — a “dram.” In modern terms, a dram shop law allows victims to sue bars, restaurants, or other establishments that serve alcohol to someone who later causes harm because of intoxication.

In Texas, these laws are defined by the Texas Alcoholic Beverage Code, Chapter 2 (Liability for Serving Alcoholic Beverages). The statute was designed to promote responsible alcohol service and deter overserving intoxicated patrons.

When Can a Bar or Restaurant Be Held Liable?

Under the Texas Dram Shop Act, a bar, restaurant, or other alcohol provider can be held responsible if:

1. They sold or served alcohol to an obviously intoxicated person,
   and
2. It was apparent to the server that the individual presented a clear danger to themselves or others.

If that person then causes an accident that injures or kills someone, the establishment may share liability for the damages alongside the intoxicated driver.

Example:
A bartender continues serving drinks to a customer who is slurring, stumbling, and clearly intoxicated. That customer later gets behind the wheel, runs a red light, and crashes into another vehicle.
In this case, both the driver and the bar could be held liable for the victim’s injuries.

Evidence That Supports a Dram Shop Claim

Proving dram shop liability can be complex but not impossible. A skilled attorney can uncover key evidence, such as:

• Receipts or credit card records showing how much alcohol was sold.

• Surveillance video from inside the bar or restaurant.

• Witness statements from other patrons or staff who noticed intoxication.

• TABC (Texas Alcoholic Beverage Commission) reports or prior violations.

• Expert testimony on blood-alcohol levels and serving standards.

Because evidence can disappear quickly (i.e. video footage is often erased within days) it’s crucial to contact a lawyer as soon as possible after a crash.

Dram Shop Cases Involving Drunk Driving Accidents

Dram shop liability often comes into play in DUI and DWI-related crashes. In many of these accidents, the drunk driver’s blood-alcohol content (BAC) far exceeds the legal limit of 0.08%.

When that level of intoxication could only have been achieved through continued alcohol service at a bar or restaurant, it raises red flags.

In some tragic cases, overserving contributes directly to fatalities, leaving families with lifelong loss and grief. Holding the establishment accountable not only helps victims recover compensation, but it can also prevent future overserving and save lives.

What About “Social Hosts”?

Texas dram shop laws primarily apply to licensed establishments and not private individuals. However, there is one exception:

A social host (private individual) can be held liable if they knowingly serve or provide alcohol to a minor under 18, and that minor causes injury or damage as a result.

For example, if a parent hosts a party where teens are allowed to drink, and one of them later causes a crash, the parent may face civil liability under the law.

What Damages Can Victims Recover?

If a bar or restaurant is found liable under the Texas Dram Shop Act, victims may be entitled to compensation for:

• Medical expenses

• Lost wages and future earnings

• Property damage

• Pain and suffering

• Emotional distress

• Funeral expenses (in wrongful death cases)

In particularly egregious cases, such as when a bar knowingly breaks the law or has a history of violations, punitive damages may also be available to punish the establishment and deter similar behavior.

Time Limits for Filing a Dram Shop Claim

The statute of limitations for dram shop lawsuits in Texas is typically two years from the date of the accident. However, waiting too long can severely weaken your case.

Bars often delete surveillance footage and discard transaction records within days or weeks. The sooner your legal team begins investigating, the better the chances of preserving critical evidence.

Real-World Examples of Dram Shop Liability

Across Texas, dram shop claims have resulted in substantial settlements and verdicts for victims.

In one notable Houston-area case, a restaurant was found liable for overserving a customer who left and caused a fatal head-on collision. The outcome is still pending.

These cases highlight how holding bars accountable not only brings justice to victims but also pressures the industry to serve responsibly.

Why Dram Shop Cases Are So Complex

Unlike a straightforward car accident claim, a dram shop case requires proving two levels of negligence:

1. The driver’s negligence in operating a vehicle while intoxicated.

2. The bar’s negligence in serving alcohol to someone who was obviously intoxicated.

That means collecting two sets of evidence, interviewing multiple witnesses, and possibly dealing with both insurance companies and corporate legal teams.

Without an experienced attorney, victims often face an uphill battle against powerful businesses and insurers determined to avoid blame.

How Scott Callahan & Associates Can Help

At Scott Callahan & Associates, we know how to hold negligent bars and restaurants accountable. With decades of experience handling personal injury and wrongful death cases across Texas, we have the resources and expertise to investigate, prove, and win complex dram shop claims.

Our team can:

• Obtain bar receipts, security footage, and TABC reports

• Identify witnesses who saw the overserving

• Work with toxicology and accident reconstruction experts

• Negotiate aggressively with insurance companies

• Take your case to trial if necessary

We fight for justice — not just compensation — to make Texas roads safer for everyone.