Dram shop laws hold bars, restaurants, liquor stores, and other commercial establishments liable when they serve alcohol to someone underage or visibly intoxicated, and that person injures someone else. These laws exist to reduce alcohol-related accidents by putting legal responsibility on businesses that serve alcohol irresponsibly. When an establishment overserves a drunk customer who then drives and injures someone, victims or their families may have another avenue to seek compensation beyond the drunk driver's insurance policy.
In 2023, Georgia reported 433 fatal alcohol-related crashes, representing 26% of all traffic fatalities in the state. That's more than one fatal drunk driving crash per day. Families lose parents, children lose siblings, and spouses become widows because someone chose to serve alcohol to a person who shouldn't have been served.
If a drunk driver injured you or killed someone you love, you may be able to hold the bar, restaurant, or other liable establishment accountable. Dram shop cases can be difficult to prove, but they're sometimes the only way to get fair compensation when the drunk driver has minimal insurance or no assets. This page explains when businesses can be held liable under Georgia's dram shop statute, what damages you can recover, and why you should speak to a personal injury lawyer as soon as possible.
What Is a Dram Shop?
The term "dram shop" originated in 18th-century England, referring to establishments that sold gin by the "dram." Since a dram is one-eighth of a fluid ounce, establishments where liquor was sold by the shot became known as dram shops. The name stuck, and today it refers to any business that sells or serves alcoholic beverages to the public.
Georgia's dram shop law applies to a wide range of businesses that sell or serve alcohol. Bars and nightclubs are the most common examples, as they serve alcohol as their primary business. Restaurants also fall under dram shop liability when they serve beer, wine, or cocktails with meals. Liquor stores and package stores that sell bottles and six-packs for off-premises consumption can be held liable, too, as can convenience stores and grocery stores with alcohol licenses.
Sports stadiums, concert venues, and other entertainment facilities that serve alcohol at events are also considered dram shops. Even golf courses, country clubs, and private event spaces can be liable if they serve alcohol and meet the conditions for dram shop responsibility. The law doesn't care about the size or type of business. If an establishment sells or serves alcohol and knowingly violates Georgia's dram shop statute, it can be sued.
Social hosts, meaning private individuals who serve alcohol at parties or gatherings in their homes, can also face liability for drunk driving accidents in Georgia, but only in limited circumstances involving underage drinking. A homeowner who serves alcohol to a minor at a backyard barbecue, knowing that the minor will soon drive, can be held liable just like a bar owner. However, social host liability in Georgia is much narrower than commercial dram shop liability and typically only applies when minors are involved.
Overview of Georgia's Dram Shop Law
The Georgia General Assembly enacted the Georgia Dram Shop Act (O.C.G.A. § 51-1-40) in 1988, which codified the Georgia Supreme Court's landmark decision in Sutter v. Hutchings. The Sutter case involved a social host who furnished alcohol to a noticeably intoxicated minor, knowing that the person would soon be driving, and the Georgia Supreme Court held that the host could be liable if a third person was injured by the negligent, intoxicated driver. The legislature then extended this principle to commercial alcohol-serving establishments.
Georgia is fairly unusual in that the state requires that the server or host has reason to believe the intoxicated individual is planning to drive. Many states only require proof that the establishment served a visibly intoxicated person. Here, you must also prove the establishment knew that person would soon be driving. This "knowledge" requirement makes Georgia's Dram Shop Act harder to satisfy than similar statutes in states like Illinois or New York, where the focus is primarily on visible intoxication alone.
When Can a Business Be Held Liable Under Georgia Dram Shop Laws?
To hold a bar, restaurant, or other establishment liable under the Dram Shop Act, you must prove three things: (1) the establishment served alcohol to either a minor or a noticeably intoxicated person, (2) the establishment knew that person would soon be driving, and (3) the serving of alcohol was a proximate cause of the injuries due to the crash.
Serving Alcohol to a Noticeably Intoxicated Person
Georgia case law holds that a plaintiff can prove an adult consumer was "noticeably intoxicated" by providing evidence of the adult consumer's loud and obnoxious behavior at the time in question. Noticeably intoxicated means the person showed outward signs that any reasonable server should have recognized. Common signs include slurred speech, unsteady movement, aggressive conduct, and increased volume levels. A person who stumbles while walking to the bar, knocks over a drink, or has trouble forming coherent sentences is noticeably intoxicated.
In Northside Equities v. Hulsey (275 Ga. 364, 2002), the Georgia Supreme Court held that the BAC level of a drunk driver at the scene of the DUI accident, combined with expert testimony on how an average driver with that level of impairment might act, can suffice to prove the adult consumer was noticeably intoxicated when the dram shop provided alcohol.
This means your drunk driving accident attorney can use an expert witness to reconstruct what the driver looked like hours earlier based on their blood alcohol level after the crash. For example, if the driver had a BAC of 0.20 two hours after leaving the bar, an expert can testify that a person with that level of intoxication would likely have exhibited obvious signs of impairment that a reasonable server should have recognized at the time of service.
Serving Alcohol to a Minor
Georgia's dram shop law applies when an establishment willfully, knowingly, and unlawfully serves alcoholic beverages to anyone under 21 years old. Cases involving minors are often easier to prove than cases involving noticeably intoxicated adults, as you don't have to show the minor was visibly drunk. You only have to prove the establishment served alcohol to someone under 21, knowing that person would soon be driving.
For example, if a 19-year-old walks into a bar, orders a beer, and the bartender serves it without checking ID, the bar may be liable if the evidence shows the bartender knew or should have known the teenager would soon be driving and the young person causes a drunk driving crash.
Alcohol vendors and convenience stores face liability, too, when they sell alcohol to minors. An AA liquor store clerk who unlawfully sells alcohol to a 17-year-old, knowing the minor will soon be driving, can be held responsible if they later cause a drunk driving accident. The clerk doesn’t need to know how much the minor will drink, but liability still depends on proof that the clerk knew or should have known the minor would soon be driving.
Knowledge That the Person Would Soon Be Driving
Georgia doesn't require direct evidence of "knowledge," as this would be impossible in many cases. Instead, you only need to prove the defendant should have known or been aware that the consumer was noticeably intoxicated. Georgia courts have held that this requirement can be satisfied with direct or circumstantial evidence establishing that the alcohol provider "in the exercise of reasonable care should have known" that the noticeably intoxicated person would "soon be driving a motor vehicle."
Common ways to prove knowledge include:
- Evidence that a customer told the server they were driving home.
- Receipts that show the patron was served alcohol right as the bar was about to close, and the bartender knew the patron had driven to the establishment.
- Testimony that the patron had no other transportation options.
A bartender who watches a drunk customer pull car keys out of their pocket has knowledge. A server who hears a customer say "one more for the road" before walking to the parking lot has knowledge. A convenience store clerk who sees a drunk person stumble out of a car, buy a six-pack, and get back in the driver's seat has knowledge.
Who Can File a Georgia Dram Shop Claim?
In Georgia, dram shop and social host claims can be asserted by innocent parties injured in drunk driving accidents. This includes other motorists and their passengers, pedestrians, motorcyclists, and bicyclists.
Only the drunk driver and the family members of the drunk driver are precluded from filing a personal injury lawsuit. Georgia's dram shop law is a "third-party" dram shop law, meaning that it allows people who are injured by a drunk driver to sue, but it does not permit the driver to sue for his or her own injuries. Similarly, if a drunk driver dies in a single-car crash, their spouse or parents can't sue the bar. This rule prevents drunk drivers from profiting from their own wrongdoing and keeps the focus on protecting people who had nothing to do with the decision to drink and drive.
Why You Need an Experienced Georgia Dram Shop Attorney
Dram shop litigation can be more complicated than other personal injury cases because of the investigation involved. You not only need to know that an establishment overserved an intoxicated adult or minor, but they also knew that the party in question intended to drive afterward. A Georgia dram shop lawyer can help by:
- Fast Evidence Preservation: An attorney can immediately begin to collect and preserve vital evidence before it can be lost or destroyed. Spoliation letters put bars on legal notice to save surveillance footage, receipts, and employee records. If defendants destroy evidence after receiving notice, courts can impose sanctions.
- Identifying All Liable Parties: Your personal injury lawyer will aim to identify every possible defendant: the bartender, bar owner, corporate parent, property owner, etc. Each defendant has separate insurance coverage, giving you a better chance at full compensation for your medical bills, ongoing care costs, lost wages, pain and suffering, property damage, and more.
- Maximizing Compensation: Most drunk drivers carry only $25,000 to $50,000 in insurance. Dram shop claims access the bar's policy, often $1 million or more. Without this claim, you're stuck with whatever little coverage the driver has.
- Trial-Ready Representation: Your attorney can file suit quickly to obtain subpoena power for surveillance video and bar receipts. They may hire expert witnesses, conduct thorough investigations, and take cases to trial when insurers refuse fair settlements.
Georgia's statute of limitations gives you two years from the date of your injury to file a lawsuit against a bar or other establishment. Two years might sound like plenty of time, but dram shop cases can involve months of investigation before you're ready to file. Your attorney needs to identify the establishment, collect evidence, interview witnesses, hire experts, and build a case proving the bar knew the driver was intoxicated and that they'd drive. Evidence disappears fast in these cases, so the sooner you act, the better your chances of preserving evidence and building a strong case.
Get a Free Consultation From a Georgia Personal Injury Lawyer
If you or a loved one was injured by a drunk driver in Georgia, The Champion Firm, Personal Injury Attorneys, P.C. has the experience, resources, and trial record to take on bars, restaurants, and their insurance companies. We've recovered over $150 million for injured clients across Georgia, and know how to build winning dram shop cases.Don't let the bar that over-served a drunk driver escape responsibility. Call The Champion Firm today for a free consultation. We'll review your case, explain your options, and start building your claim immediately. You have two years to file, but you have only days to preserve evidence, so contact us at 404-738-5365 or use our online form.