When a drunk driver causes an accident in New Jersey, the bar or restaurant that served them alcohol might also be responsible for injuries. This legal concept, known as dram shop liability, gives victims another avenue to seek compensation beyond just suing the intoxicated driver.
New Jersey’s dram shop laws allow you to hold establishments accountable when they negligently serve alcohol to visibly intoxicated patrons or minors who later cause accidents. Understanding these laws can significantly impact your ability to recover full compensation for your injuries.
What Are Dram Shop Laws?
The term “dram shop” comes from 18th-century businesses that sold alcohol by a measurement unit called a “dram,” which is equivalent to about a spoonful. In modern times, these regulations cover all businesses that provide or sell alcohol to customers.
New Jersey’s Licensed Alcoholic Beverage Server Fair Liability Act, specifically under NJ Revised Statutes 2A:22A, contains the state’s dram shop laws. These statutes create a legal framework where bars, restaurants, and other licensed establishments can be held liable for injuries caused by their intoxicated customers.
How New Jersey’s Dram Shop Act Works
Under New Jersey’s dram shop law, licensed establishments such as bars and restaurants can be held liable for injuries caused by their intoxicated customers if:
- The server is found negligent for serving a visibly intoxicated person or a minor
- The injury or damage was proximately caused by the negligent service of alcohol, AND
- The injury or damage was a foreseeable consequence of the negligent service.
The law is intended to balance the rights of those harmed by negligent alcohol service with the interests of businesses. It is the exclusive civil remedy for personal injury or property damage resulting from such negligence in New Jersey.
The “Visibly Intoxicated” Standard
The law doesn’t require that someone be falling-down drunk. Signs of visible intoxication might include:
- Slurred speech
- Unsteady movement or stumbling
- Bloodshot eyes
- Strong odor of alcohol
- Aggressive or erratic behavior.
In addition, courts have interpreted “serving” alcohol to include situations where establishments allow self-service or provide environments where intoxicated patrons can continue drinking.
When Establishments Are Not Liable
New Jersey law doesn’t require that underage drinkers must have been visibly intoxicated when served. However, establishments have defenses available, such as arguing they had no reasonable way to know a patron was intoxicated or underage.
The Drunk Driving Crisis in New Jersey
The stakes couldn’t be higher. The National Highway Traffic Safety Administration (NHTSA) reports that drunk driving crashes claim 34 lives daily across the United States. In New Jersey specifically:
- In 2023, drunk driving resulted in 142 deaths, representing 23 percent of all traffic fatalities.
- Of these NJ deaths, 91 involved a driver with a blood alcohol concentration (BAC) of 0.15% or over, which is nearly twice the BAC limit for motorists.
- New Jersey records 26,500 DUI and related convictions annually.
Although New Jersey’s drunk driving death rate remains lower than the national average, each statistic represents devastating losses for families and communities.
Types of Dram Shop Cases
Car Accidents
The most common dram shop claims arise from drunk driving crashes. When an intoxicated driver leaves a bar and causes a collision, the establishment may be liable if they over-served the driver.
Other Incidents
Dram shop liability can extend beyond car accidents to include:
- Assaults by intoxicated patrons who were over-served
- Slip and fall accidents caused by intoxicated individuals
- Property damage resulting from alcohol-related incidents.
Limitations on Claims
The person who consumed the alcohol and then injured themselves cannot draw upon the dram shop law, meaning they cannot.
Additionally, the dram shop law applies only to licensed alcohol-serving businesses such as bars. A separate law, called the social host law, applies if the alcohol was served at a social gathering hosted by an unlicensed person, such as a private party or function. The social host liability law has slightly different conditions from those of the dram shop law.
Establishing Your Dram Shop Claim
Critical Evidence Required
Constructing a compelling dram shop claim depends on gathering comprehensive evidence:
- Security camera footage documenting the customer’s intoxication state and continued alcohol service
- Statements from witnesses including fellow customers, servers, or management
- Payment records showing the amount of alcohol bought over time
- Professional analysis regarding intoxication standards and business protocols.
Understanding Shared Fault Rules
New Jersey operates under comparative negligence principles, enabling courts to distribute responsibility among various parties who were negligent in an accident. This means the court may assign partial responsibility to both the drunk driver and the establishment that served them.
This legal principle can actually benefit victims. Even if the drunk driver bears the majority of fault, the establishment’s liability provides an additional source of compensation.
Compensation Available in Dram Shop Cases
Victims of drunk driving accidents can seek multiple types of damages:
Economic Damages
- Medical expenses (current and future)
- Lost wages and reduced earning capacity
- Property damage
- Rehabilitation costs
- Other expenses related to the injury.
Non-Economic Damages
- Pain and suffering
- Mental or emotional distress
- Diminished enjoyment of life
- Permanent disability or disfigurement.
Punitive Damages
In New Jersey, punitive damages can be sought in dram shop cases. These damages are meant to punish establishments for extreme cases of wrongdoing, and are additional awards paid to the victim.
Filing Deadlines
New Jersey law mandates that dram shop and personal injury lawsuits must be filed within two years from when the injury occurred. Failing to meet this timeframe usually results in forfeiting your right to seek damages.
However, the discovery rule may apply in certain circumstances, allowing the two-year clock to start running not on the accident date but on the date the injury is reasonably discovered. This is helpful particularly in cases involving delayed-onset injuries or when the connection between the establishment’s negligence and the accident isn’t immediately apparent.
Why Dram Shop Laws Matter
These laws serve multiple important purposes:
Deterring Irresponsible Service
When establishments face financial consequences for over-serving patrons, they’re more likely to train staff properly and implement responsible service policies.
Ensuring Fair Compensation
Drunk drivers often lack sufficient insurance or assets to fully compensate victims. Dram shop liability provides access to the establishment’s commercial insurance policies, which typically offer much higher coverage limits.
Enhancing Community Safety
These regulations aim to discourage irresponsible alcohol service while providing additional recovery options for accident victims.
Challenges in Dram Shop Cases
Establishing “Visible Intoxication”
Proving a patron was visibly intoxicated at the time of service can be difficult, especially when relying on witness testimony hours or days after the incident.
Insurance Company Tactics
Establishments and their insurers often argue that:
- The patron wasn’t visibly intoxicated when served.
- The injuries weren’t caused by the establishment’s actions.
- The accident was unforeseeable.
Complex Investigations
These cases require thorough investigations that may include:
- Recreating the timeline of alcohol service
- Analyzing surveillance footage
- Interviewing multiple witnesses
- Consulting with alcohol impairment experts.
Moving Forward After Tragedy
No amount of money can undo the trauma of a drunk driving accident. However, holding all responsible parties accountable serves important purposes beyond compensation. It can prevent future tragedies by encouraging responsible alcohol service and provide the financial resources needed for long-term recovery.
If you or someone you love has been injured by a drunk driver, you deserve answers about all potential sources of compensation. The establishment that over-served the driver may be just as responsible for your injuries as the person behind the wheel.
What to Do After a Drunk Driving Accident
Immediate Steps
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- Seek medical attention immediately, even for seemingly minor injuries.
- Call 911 to ensure police respond and create an official report.
- Document everything you can remember about the accident.
- Avoid discussing fault with insurance companies before consulting an attorney.
- Consult a trusted lawyer who has demonstrated experience with dram shop laws and claims.
Investigating the Establishment
Your attorney will need to quickly investigate:
- Where the drunk driver was drinking before the accident
- How much alcohol they consumed
- Whether they showed signs of intoxication
- The establishment’s service policies and staff training.
Preserving Evidence
Time is critical in dram shop cases. Surveillance footage may be automatically deleted, witnesses’ memories fade, and other crucial evidence can disappear quickly. Take action as soon as you can. A wise thing to do is to discuss your potential claim with a personal injury lawyer to learn what your legal options are. Your consultation costs nothing at Grossman Law, as we provide a free case review for these cases.
The Grossman Law Firm’s Experience with Dram Shop Cases
Scott Grossman has dedicated nearly 30 years to fighting for injured victims throughout New Jersey. He earned his JD from Quinnipiac University School of Law in 1997 and holds a Master’s in Political Science from Rutgers University.
Scott Grossman was selected to Super Lawyers for 2022-2025, recognizing him as one of the top 5% of attorneys in his practice area. Scott has maintained membership with the New Jersey Association for Justice (NJAJ) for many years and previously served on its Board of Governors.
The Grossman Law Firm has achieved remarkable results for clients. Our firm has recovered tens of millions of dollars in settlements and verdicts. Recently, we secured a $2 million verdict against State Farm in a Middlesex County underinsured motorist case.
Contact Grossman Law Firm Today
Don’t let time run out on your ability to seek justice. The Grossman Law Firm’s proven track record includes millions recovered in settlements and verdicts, demonstrating our commitment to fighting for every client’s rights.
Contact us at (732) 625-9494 for your free case evaluation. As a top-rated New Jersey personal injury firm with over two decades of experience, we understand how to build strong dram shop cases and hold negligent establishments accountable. Our recent $2 million verdict against State Farm and recognition in the Million Dollar Advocates Forum prove our ability to achieve results for our clients.
We work on a contingency basis, meaning you pay no fees until we secure your victory. Call us today to discover how we can help you obtain the complete compensation you’re entitled to receive.
