What Is the Dram Shop Law in Indiana?

When an accident is caused by someone who is intoxicated, most people assume the drunk individual is the only one at fault. However, under the dram shop law in Indiana, other parties responsible could include those who sell alcohol, such as the bar, restaurant, or liquor store that furnished alcohol. The personal injury attorneys in our law firm have a deep understanding of dram shop liability laws and can help victims get justice when a commercial establishment’s irresponsible service of alcoholic beverages leads to harm.

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 serve alcohol.

How the Indiana Dram Shop Act Works

Indiana’s Dram Shop Act (IC § 7.1-5-10-15.5) allows a person injured by a visibly intoxicated person to hold the alcohol vendor liable. The goal is to encourage businesses to serve alcohol responsibly, to prevent drunk driving accidents, and to compensate victims when a vendor’s negligence causes an accident.

For a dram shop liability claim to succeed, the law requires you to prove two things:

• You must show the vendor had “actual knowledge”—that the intoxicated patron they were serving was visibly intoxicated, as evidenced by slurred speech or erratic behavior.
• You must prove proximate cause—that the person’s intoxication was a direct and foreseeable cause of the injury, giving the vendor third-party liability.

Under Indiana dram shop laws, it’s not enough to show that the business should have known the customer was drunk; you have to prove they knew and served them anyway.

What Evidence Is Needed for a Dram Shop Claim?

Proving that a bartender or store clerk had “actual knowledge” of a person’s intoxication can be tricky. Strong evidence is essential for a successful dram shop case.

Key pieces of evidence in a successful claim often include:

• Eyewitnesses: testimony from other customers or employees who saw the person slurring their words, stumbling, or acting aggressively can be very persuasive.
• Video footage: security cameras inside the establishment can offer clear proof of the person’s condition and their interactions with staff.
• Receipts: credit card statements or bar tabs can show how many drinks were served to the person over a specific period.
• Police reports: the official accident report will contain the intoxicated person’s blood alcohol concentration (BAC) and the officer’s own observations of their impairment.
• Expert opinions: a toxicologist can estimate the person’s BAC when they were served and explain how someone with that level of intoxication would have appeared.

Steps to Take If You Believe You Have a Case

If you or a loved one has been harmed by an intoxicated person, you may have a valid civil lawsuit against the establishment that overserved them. It’s important to act quickly and contact an Indiana injury lawyer.

In Indiana, personal injury claims, including dram shop cases, must be filed within two years of the date of the injury (IC § 34-11-2-4(a)). This time limit is known as the Indiana statute of limitations. If you miss this deadline, you lose your right to seek compensation. Because these cases require significant investigation, contacting an attorney as soon as possible is critical to preserve evidence and build a strong case.

Common Misconceptions

There are several common myths about how dram shop laws impose liability in Indiana.

• Myth: Claims are only for drunk driving accidents.
• Fact: While drunk driving is a frequent cause of these cases, the law applies to any foreseeable harm. This can include injuries from assaults, falls, or other accidents caused by the intoxicated individual.
• Myth: A social host at a private party has the same civil liability as a bar.
• Fact: Indiana’s social host liability law treats social hosts differently. A private host is typically only liable in social host claims if they provided alcohol to underage drinkers—the legal drinking age is 21 per Indiana law (IC § 7.1-5-7-7). They are generally not held responsible for damages caused by an intoxicated adult guest.
• Myth: You can’t file a claim if you were drinking with the intoxicated person.
• Fact: Your own alcohol consumption does not automatically disqualify you. For example, if you were a passenger injured in a crash caused by a drunk driver, you may still have a case against the bar that over-served your friend, even if you had several drinks.

Seek Professional Legal Counsel

Navigating personal injury cases after a serious injury in an alcohol-related accident is complex and stressful. While the intoxicated person is directly responsible for the harm they cause, the Indiana dram shop statute provides a way to hold negligent businesses that sell alcoholic beverages accountable.

Call Us for a Free Consultation

If you believe you have a case involving a licensed alcohol vendor serving a drunk person who caused your accident, consult with an experienced attorney at our law firm who can help you understand your legal options to recover damages such as medical costs, lost wages, and property damage.