How New Jersey’s Dram Shop Laws Affect Liability in Drunk Driving Accidents

When someone is injured by a drunk driver in New Jersey, the driver is not the only party who may be held liable for damages. In New Jersey, dram shop laws and social host liability laws extend liability to businesses and individuals who serve alcohol irresponsibly. These laws are designed to deter establishments from over-serving patrons and to offer additional avenues for injury victims to seek compensation. How do New Jersey’s dram shop laws work, and who can be held liable in drunk driving accidents? 

How Does New Jersey Law Define a Dram Shop?

A “dram shop” is a term used to refer to a bar, restaurant, or other establishment that serves alcoholic beverages to patrons. The term originated from colonial-era establishments that served alcohol by the dram, a small unit of liquid. In modern legal terms, a dram shop law governs the liability of alcohol-serving establishments when a patron they serve becomes intoxicated and causes injury to another person. 

The Dram Shop Act and Social Host Liability Laws

New Jersey’s Dram Shop Act, also known as the New Jersey Licensed Alcoholic Beverage Server Fair Liability Act, establishes the conditions under which a bar or other alcohol-serving establishment can be held liable for the actions of an intoxicated patron. Additionally, New Jersey’s Social Host Liability Law imposes similar responsibilities on private individuals who serve alcohol at parties or social gatherings. 

• Dram Shop Laws: under New Jersey law, a licensed alcohol server (such as a bar, restaurant, or liquor store) can be held responsible for injuries caused by a customer if they serve alcohol to a visibly intoxicated person or a minor (under the legal drinking age of 21). This liability can extend to injuries caused by drunk driving accidents or other incidents involving the intoxicated individual. 
• Social Host Liability Laws: these laws apply to private individuals who host social gatherings. If a social host serves alcohol to someone who is visibly intoxicated, and that person causes injury to another party, the host may be held liable. Social host liability often comes into play in cases involving drunk driving accidents after private parties. 

Who in New Jersey Can Be Held Liable for Drunk Driving Injuries Based on the Dram Shop Act?

Under the Dram Shop Act, liability may extend beyond the intoxicated driver to: 

• Bars and Restaurants: if a bar, nightclub, or restaurant serves alcohol to someone who is visibly intoxicated, they may be held liable for any injuries that person causes. 
• Liquor Stores: if a liquor store sells alcohol to an intoxicated individual, they could also be held liable under the dram shop laws. 
• Private Individuals: social hosts can also be liable if they serve alcohol to a visibly intoxicated guest who later causes harm. 

It is important to note that the intoxicated person must have been visibly intoxicated at the time they were served for a dram shop or social host claim to succeed. “Visibly intoxicated” means showing outward signs of drunkenness, such as slurred speech, unsteady movement, or extreme behavior. 

How Can Dram Shops Be Proven Negligent in These Types of Cases?

Proving negligence in a dram shop case often involves gathering evidence that shows the establishment served alcohol irresponsibly. The injured party and their legal team must demonstrate that the bar, restaurant, or other alcohol-serving establishment: 

1. Served Alcohol to a Visibly Intoxicated Person: this is the central element of a dram shop claim. To prove this, evidence such as surveillance footage, eyewitness testimony, and credit card receipts showing a large volume of alcohol served in a short period can be critical. 
2. Served Alcohol to a Minor: if a business serves alcohol to someone under the age of 21, they can be held liable for any injuries that occur as a result, even if the person was not visibly intoxicated. 
3. Negligence in Training or Oversight: if the establishment failed to properly train employees on how to recognize intoxicated customers or did not implement policies to prevent over-serving, this could also serve as evidence of negligence. 

Does Comparative Negligence Impact Dram Shop Liability?

New Jersey follows the doctrine of comparative negligence, which allows for the allocation of fault among multiple parties in an accident. This means that in a dram shop case, the court may assess the level of responsibility of the intoxicated driver and the establishment that served them. 

For example, if a drunk driver is found to be 80% responsible for the accident and the establishment that served them is found to be 20% responsible, the injured party may only recover 20% of their total damages from the establishment. The ability to recover damages is limited by the degree of fault attributed to each party. 

What Damages Can Be Collected by Injury Victims?

Victims of drunk driving accidents in New Jersey can pursue a variety of damages from the responsible parties, including: 

• Medical Expenses: compensation for hospital bills, surgeries, physical therapy, and ongoing medical treatment related to the injuries sustained in the accident. 
• Lost Wages: if the injury caused the victim to miss work or led to a long-term inability to work, they may be entitled to recover compensation for lost income. 
• Pain and Suffering: compensation for the physical pain and emotional distress caused by the accident. 
• Property Damage: compensation for the repair or replacement of the victim’s vehicle or other damaged property. 
• Punitive Damages: in some cases, punitive damages may be awarded if the conduct of the dram shop or intoxicated driver was particularly egregious. Punitive damages are designed to punish the wrongdoer and deter future misconduct. 

Have You Been Injured by a Drunk Driver?

New Jersey’s dram shop laws provide an important avenue for injury victims to seek compensation after a drunk driving accident. Bars, restaurants, and social hosts can be held accountable if they serve alcohol irresponsibly, and victims can pursue claims to cover medical bills, lost wages, and other damages. If you or a loved one has been injured in a drunk driving accident, work with our experienced car accident attorneys at Eichen Crutchlow Zaslow. Get in touch with us for a free case consultation today.