Dram Shop Liability in Kentucky

Perhaps one reason the public may be unaware of this liability is that it falls under the umbrella of what are known as dram shop laws. Of course, nobody in daily life ever talks about “going to the dram shop”, but any business that serves alcohol is formally called a dram shop. A “dram” is an antiquated English term for a “pour”, approximately a teaspoon, or one eighth of a fluid ounce, of alcohol, and a dram shop is any business which sells alcohol “by the drink”.

There are only specific and limited situations in which a bar, restaurant, or other licensed establishment may be held liable in a dram shop case as a result of the alcohol-influenced actions of its patrons under Kentucky law. These include:

- Serving alcohol to a person who is already visibly intoxicated 

- Serving alcohol to a minor 

In most other circumstances, the individual who consumed the alcohol will be considered primarily responsible for their actions.

While every sane individual is legally seen as being accountable for all of their actions, dram shop laws account for the role that alcohol can play in increasing the likelihood of harm which could otherwise be prevented. As such, these laws also account for the culpability bartenders and other purveyors of alcohol bear as suppliers of such a potentially volatile substance. Often the major question at hand in dram shop liability cases is whether the person being served was already visibly intoxicated. This isn’t always easy to spot, but common signs such as slurred speech, stumbling, glassy eyes, and other telltale signs of drunkenness serve as indicators that a patron shouldn’t be served further. Some individuals may exhibit these signs without being intoxicated, but bartenders and other alcohol vendors are expected to exercise proper discretion in determining who can be served.  

It may go without saying, but any business that serves alcohol to minors is already breaking the law and will be heavily implicated in cases involving dram shop liability. The drinking age is 21 in all 50 U.S. states, as per the National Minimum Drinking Age Act of 1984, which makes it illegal to "knowingly sell, give, purchase or procure any alcoholic or malt beverage in any form to or for a minor." (KRS § 530.070(1)(a)) Businesses that knowingly disregard this requirement are already liable for numerous damages in any case related to the sale of alcohol to minors.

Much of the culpability in a dram shop liability case is contingent on the ability of the vendor, usually the bartender, to exercise proper discretion regarding who they choose to serve and when. The statute is framed in such a way as to relieve vendors from liability in the majority of injury cases, except for those in which “a reasonable person under the same or similar circumstances should know that the person served is already intoxicated at the time of serving.” It goes on to say that, “the intoxicated person shall be primarily liable with respect to injuries suffered by third persons”, further enforcing the responsibility primarily carried by the customer rather than by the alcohol vendor. Often what really makes the difference in these cases is how aware the vendor could have been regarding the patron’s intoxication. Professionals in these situations serve numerous patrons regularly and gradually develop a sense of drunkenness and impairment. While the line between when to serve another drink and when to refuse can be blurry, some determinants might be how many drinks were served within a certain time period, as well as the demeanor of the patron, or the vendor, as confirmed by witnesses.

When alcohol is deemed to be a factor in car or motor vehicle accidents, liability among participants can be a heavily contested factor. Drunk driving is said to comprise approximately 30% of all fatalities from car accidents, according to the NTHSA, which makes the question of liability even more severe. As such, dram shop liability cases are occasionally brought to court following car accidents. In these situations, responsibility for an injury is not always assigned to just one party. In all matters of personal injury, Kentucky abides by what is known as a pure comparative fault system. This means that fault may be divided among multiple individuals or entities, based on their respective roles in the incident.

An intoxicated, “under-the-influence” individual is often considered primarily responsible for their actions. However, if a bar, restaurant, or other establishment contributed to the situation by continuing to serve alcohol to a person who was visibly intoxicated or to a minor, a portion of liability may also be assigned to the vendor. Damages awarded may be apportioned according to the percentage of fault attributed to each party. For example, if a claimant is found to be partially or primarily responsible for their own injuries, their total recovery may be reduced accordingly. Because of this, establishing how fault is allocated is a critical component of any dram shop liability claim.

Whether you, someone you know, or someone you were involved with was potentially overserved, you may be entitled to damages which would fall under the umbrella of dram shop liability. As with any personal injury case, documentation is paramount. Knowing where the alcohol was served is crucial, as well as the time and date. The same holds true for the other circumstances surrounding the incident. We know that alcohol can cloud judgment as well as memory, and therefore eyewitness accounts, especially those given by patrons or bystanders who were relatively sober, are also indispensable. Dram shop liability cases do have statutes of limitations which apply, so it is important to contact an attorney promptly, as soon as the likelihood of having a case is known. It is best, however, to refrain from making unnecessary statements to insurers or other officials beforehand, some of which may implicate you as the claimant if you feel you were overserved.

Although some personal injury claims, such as those involving motor vehicle accidents, tend to allow up to two years following the incident for filing, dram shop liability claims have a limit of one year, pursuant to pursuant to KRS § 413.140(1)(a). This may seem like quite a while, but all too often we remain unaware that we are eligible for such financial compensation at all, and by the time everything is set in motion for a case to be filed it is too late. Therefore, it is important to consider whether you might have a viable dram shop liability case to bring against an alcohol vendor, and if so, to begin taking the necessary steps.

Dram shop liability cases can be especially complex, as the issue at hand is most often how liable a liquor licensee is for being a factor in the careless and reckless actions of a paying customer. But, when good cause is found for awarding damages, those damages can be significant and cover many areas. Long-term care and lost wages are commonly awarded when there has been a severe accident. Pain and suffering would certainly be bundled with any lasting ramifications. Immediate medical bills can also be involved. When the dram shop is held fully liable for personal injury, punitive damages, which are fees paid towards the claimant by the dram shop for its negligence, may also be awarded. It is important to note that punitive damages are typically awarded only in instances of particularly egregious conduct on the part of the vendor.

As stated, the statute of limitations for dram shop liability, at one calendar year, is not a lengthy one, and when the year expires it is legally impossible to bring a case forward. The discovery process for these cases will necessitate eyewitness interviews and thorough investigations, which not only are more difficult to conduct as time elapses, but also far more difficult to conduct reliably.