What Is the Dram Shop Law in Minnesota?

When an intoxicated person causes an accident, it is natural to assume they are the only one liable for the resulting harm. The dram shop law in Minnesota, however, recognizes that another party may share responsibility: multiple establishments that served or sold them alcoholic beverages. These dram shop liability laws hold businesses like bars and liquor stores accountable for irresponsibly serving alcohol to a visibly intoxicated person who then causes injury to others in drunk driving accidents and other mishaps.

Understanding dram shop laws can be vital for accident victims seeking full compensation for their losses. The personal injury attorneys in our law firm explain how Minnesota’s Civil Damage Act works, the specific requirements for filing a claim, and the strict deadlines that apply.

What Does “Dram Shop” Mean?

“Dram shop” comes from 18th-century England, where alcohol was sold by the dram—one-eighth of a fluid ounce. It now refers to places like bars and pubs that sell alcoholic beverages.

Understanding the Minnesota Civil Damage Act

Minnesota’s dram shop law, officially known as the Civil Damage Act (found in Minnesota Statute § 340A.801), allows a person injured by an intoxicated individual to file a dram shop liability claim against the licensed establishment that provided the alcohol to an obviously intoxicated person. The purpose of this law is to protect the public by encouraging bars, restaurants, and stores to serve alcohol responsibly, avoiding excessive alcohol consumption by patrons, and providing a path to justice for those harmed by a vendor’s negligence.

For a successful claim in Minnesota, two key conditions must be met:

1. An illegal sale: The injured party must prove that the establishment served alcohol—made an “illegal sale” of alcohol. This can happen in two ways: by selling alcohol to a person who was “obviously intoxicated” or by serving minors—selling alcohol to an underage drinker.
2. Causation: The illegal sale must be a direct cause of the intoxication, and the intoxication must be a direct cause of the injuries (for example, by an intoxicated driver). This means there must be a clear link between the over-service and the subsequent accident that caused harm.

Proving that a drunk person was “obviously intoxicated” is a critical part of these dram shop claims. It requires evidence that the individual showed clear signs of drunkenness—such as slurred speech, stumbling, poor coordination, or belligerent behavior—when they were served by the liquor vendor.

The Notice Requirement

A unique feature of Minnesota’s Civil Damage Act is the strict notice requirement. Before a lawsuit can be filed, the injured person must provide written notice to the licensed establishment they intend to sue.

Under Minn. Stat. § 340A.802, this notice must be served within 240 days after the date the injured person’s attorney was retained. The notice must specify the time and date of the illegal sale, the person to whom the sale was made, and the date and time of the injuries caused by the intoxicated customer. Failing to provide this formal notice within the deadline can result in the dismissal of your case. The purpose of this requirement is to allow the business time to investigate the claim and preserve important evidence, such as video footage and sales records.

What Are Social Host Liability Laws?

While dram shop laws apply to licensed businesses, Minnesota also has laws regarding “social host” liability for private functions. This applies to individuals who host private parties or gatherings. A social party host can be held liable if they knowingly served or provided alcohol to a person who is under the legal drinking age of 21, and that minor then caused an injury to themselves or a third party in alcohol-related accidents.

However, unlike licensed vendors, the social host of a house party is generally not liable for damages caused by an intoxicated adult guest, even if they were obviously intoxicated when served. This is a significant distinction, as the primary legal responsibility for over-serving adults is placed on commercial establishments that profit from the sale of alcohol.

Strict Time Limits for Filing a Claim

Minnesota law requires you to provide written notice to the licensed establishment within 240 days of hiring an attorney, making this a critical first step in a dram shop case (to impose liability on an alcohol-related business).

By Minnesota’s statute of limitations, you have two years from the injury to file a dram shop lawsuit. If you miss this deadline, you lose the chance to seek compensation.

Seeking Justice After an Accident

Dram shop cases are complex and require strong evidence like eyewitness testimony and expert analysis. Our skilled personal injury lawyers can help meet deadlines, build your case, and hold negligent establishments accountable to secure fair compensation for medical expenses, physical pain, emotional suffering, lost wages, property damage, and more.

When a victim’s injuries are fatal, our law firm can file a wrongful death lawsuit for certain family members.

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The attorneys at our law firm work on a contingency fee basis, so you only pay legal fees if we win your case.