Pour Decisions: Strategies for Fighting Alcohol Liability Claims

No business is recession-proof, but one type of business tends to do well regardless of which way the economic winds are shifting — bars. And while bars can provide a valuable “third place” for socializing and community-building, alcohol consumption is an inherently risky activity, and bars and other establishments that serve alcohol to the public have a duty to mitigate its potential harms. Personal injury claims based on alcohol liability (sometimes referred to as “dram shop” claims) present a serious risk for bar owners, restaurateurs, and other establishments in the hospitality industry. However, there are a few effective ways to fight back against them, as our North Carolina personal injury defense attorneys explain. 

Liability for Sale to Minors 

Alcohol sales to minors in North Carolina are strictly prohibited. (See N.C.G.S. § 18B-302.) It is also unlawful for minors to purchase, possess, or consume alcoholic beverages and for anyone to aid or abet the unlawful purchase, possession, or consumption of alcoholic beverages. North Carolina’s dram shop statute, codified at N.C.G.S. § 18B-121, provides a cause of action to “aggrieved parties” if: 

1. A permittee (i.e., an establishment licensed to sell alcohol) negligently sold or furnished alcohol to an underage person, 
2. The consumption of the beverage resulted in an underage driver becoming impaired, and
3. The injury that resulted was the result of the underage driver’s negligent operation of a vehicle while impaired. 

Plaintiffs in dram shop claims bear the burden of proving that the establishment was negligent in its sale or provision of alcohol to a minor. 

Liability for Sale to Adults 

You might be surprised to learn that selling alcohol to intoxicated adults is unlawful and, in some cases, could lead to tort liability. Under N.C.G.S. § 18B-305, it is unlawful for a permittee to knowingly sell or give alcoholic beverages to any person who is intoxicated. The key word here is “knowingly,” which is a higher burden than “negligently,” and requires the plaintiff to show that the establishment knew or should have known that the person they sold alcohol to was intoxicated. However, this is a flexible standard, and it is often difficult to determine exactly at what point a patron has become over-served. For more information about the burden of proof in adult alcohol liability claims, please speak to a North Carolina personal injury defense attorney.  

Social Host Liability 

While alcohol liability claims typically are directed to commercial establishments, North Carolina common law also recognizes social host liability. For example, in Hart v. Ivey, the North Carolina Supreme Court allowed a personal injury claim to proceed where the plaintiffs alleged that the defendants served alcoholic beverages to a person they knew or should have known was under the influence and would shortly thereafter drive an automobile. 

Defenses to Alcohol Liability Claims 

Commercial establishments and social hosts alike have a variety of defenses to alcohol liability claims available. While some of these defenses depend upon the type of litigation (i.e., sale to a minor under a dram shop statute vs. provision to an adult under a common law claim), the principles are generally applicable. For more specific information about alcohol liability claims and defenses, please speak to a North Carolina personal injury defense attorney. 

Challenge the “Knowing” Element

Alcohol liability claims require the plaintiff to show that the defendant knowingly sold or provided alcoholic beverages to persons who were visibly intoxicated. As such, one of the strongest defenses to such claims is to show that the patron or guest in question was not visibly or noticeably intoxicated. Evidence of intoxication can include slurred speech, glazed-over eyes, motor clumsiness, unsteady walking, boisterousness, and a host of other symptoms. If you’re facing an alcohol liability claim, challenge the visible intoxication element with any evidence available, such as surveillance video showing the patron behaving normally or a receipt showing only a small number of drinks consumed. 

Show Good Practices 

Dram shop claims require the plaintiff to show that the defendant was negligent in its sale to minors. One way to refute those allegations is to show that the establishment engaged in “good practices” as defined in N.C.G.S. § 18B-122: 

• Instruction of employees regarding the sale of alcoholic beverages
• Employee training and enforcement techniques
• Admonishment to patrons concerning laws about the furnishing of alcoholic beverages
• Retention of false identification documents
• Inquiry about the age or degree of intoxication of the person

Furthermore, an establishment can refute an allegation of negligent service to minors by showing that the minor presented a government identification showing the required age and bearing an accurate physical description of the person named on the card. In other words, show that the patron used a believable fake ID. 

Break the Chain of Causation 

Alcohol liability claims involve a certain sequence of events that generally proceeds as: (1) provision of alcoholic beverage to patron, (2) knowledge by establishment of patron’s intoxication, (3) patron causes an injury to a third party. An effective defense to alcohol liability claims, then, is to show that the establishment’s provision of alcohol to the patron was not the proximate cause of the plaintiff’s injury. An establishment could show that, for example, by presenting evidence that the patron continued drinking or took drugs after leaving the establishment but before the accident in question.  

Argue Contributory Negligence 

Unlike in most states, contributory negligence is an absolute bar to recovery in North Carolina. Accordingly, an establishment facing an alcohol liability claim could show contributory negligence by presenting evidence that the plaintiff was partially at fault for their injuries, such as voluntarily riding with an intoxicated driver or contributing to the patron’s intoxication. 

Fight Alcohol Liability Claims With Help From a North Carolina Personal Injury Defense Attorney 

Commercial establishments in the hospitality industry are frequent targets of alcohol liability claims, including dram shop claims, and present a significant risk for their owners and operators. If you’re facing an alcohol liability claim, whether as a commercial establishment or social host, contact a North Carolina personal injury defense attorney at Harris, Creech, Ward & Blackerby by calling 252-638-6666 or using our online contact form.