July 1, 2025 / Texas Law

Understanding Dram Shop Liability in Texas

When someone causes a drunk driving accident or injures others while intoxicated, it’s natural to focus blame on the individual. In Texas, alcohol providers can also be held accountable in certain cases under the state’s dram shop law.

Dram shop laws apply to bars, restaurants, and even social hosts who serve alcohol irresponsibly. If an establishment knowingly serves alcohol to someone who is already intoxicated—and that person causes injury—there may be legal consequences.

What Is a Dram Shop Law?

The term “dram shop” comes from an old word for bars or taverns that sold alcohol by the dram, or small measure. Dram shop liability applies to bars, restaurants, clubs, and other establishments licensed to serve alcohol.

Texas law allows a person injured by an intoxicated individual to sue the alcohol provider if two conditions are met:

The provider sold or served alcohol to a person who was obviously intoxicated to the extent that they posed a clear danger to themselves or others
The person’s intoxication was a proximate cause of the damages

This means victims may be able to hold the bar or restaurant partly responsible for their injuries.

Signs of Obvious Intoxication

Under the law, a bar or server must act responsibly when dealing with patrons. Serving someone who is “obviously intoxicated” can open the door to a dram shop claim.

Indicators of obvious intoxication may include:

Slurred speech or stumbling
Aggressive or erratic behavior
Falling asleep at the bar or table
Inability to pay or find money
Ordering multiple drinks quickly or in succession

Servers are trained to look for these warning signs. Failing to act can make them and their employer liable for any resulting harm.

In most cases, Texas’s dram shop law does not apply to private individuals who serve alcohol in their homes. However, there are exceptions when minors are involved.

A social host can be held liable for serving alcohol to a person under 18 if:

The adult is not the minor’s parent, guardian, or spouse
The adult knowingly served the minor or allowed them to drink on the premises

In these situations, the injured party can potentially bring a claim against the host for damages caused by the underage drinker.

How a Dram Shop Claim Works

While this often arises in drunk driving cases, dram shop liability also applies to:

Alcohol-related assaults or fights in or near the premises
Falls, injuries, or self-harm due to visible intoxication
Third-party injuries caused by an overserved patron

Texas courts take into account whether the signs of intoxication were clear enough that a reasonable server should have stopped serving the individual.

Proving Dram Shop Claims

Dram shop cases are typically filed alongside traditional personal injury or wrongful death claims. They require substantial evidence to prove liability. That might include:

Eyewitness testimony from other patrons or staff
Surveillance footage from the bar
Receipts showing drink purchases
Expert analysis of blood alcohol content and timing

These cases can be complex and fact-intensive, requiring witness testimony, surveillance footage, and expert analysis. When proven, dram shop claims can provide critical compensation and help curb reckless alcohol service.

Limits and Defenses in Texas Dram Shop Cases

Businesses often push back hard against dram shop claims. Common defenses include:

Arguing that the person was not obviously intoxicated
Claiming that the alcohol was not the cause of the accident
Citing Texas’s “Safe Harbor” defense, which protects bars that properly train staff under TABC guidelines

The Safe Harbor defense can shield a business from liability if it shows it met all legal training and supervision requirements.