Dram shop cases are unique claims that don’t arise as often as other cases such as general liability, commercial motor vehicle accidents or even product liability claims. However, the nature of dram shop-type cases can evoke intense feelings within a jury, and business owners must be aware of the potential for large verdicts due to outrage on the part of the public. All states have variations of dram shop laws and business owners must be aware of how these laws are applied, especially those owners who may have multiple locations of their business. This article will look at how two states apply their dram shop laws.

In Texas, The Texas Alcoholic Beverage Code provides a cause of action, commonly referred to as a “dram shop statute,” against a person for providing, selling or serving alcoholic beverages. Liability for providing, selling or serving alcoholic beverages may be imposed under the dram shop statute upon proof of the statutory elements of the cause of action. Though Texas follows the rule that statutes in derogation of common law are not to be strictly construed, since the dram shop statute creates a liability unknown to common law, courts have held it is to be strictly construed in the sense that it is not to be extended beyond its plain meaning or applied to cases not clearly within its purview.