In Pennsylvania, only the holder of a liquor license (licensee) may be held liable for a violation of the Pennsylvania Dram Shop Act, 47 Pa.C.S. Sections, 4-493, 4-497. Many times in a civil action arising from physical injuries caused by an alleged intoxicated patron (AIP), establishing a Dram Shop Act violation is important for a plaintiff, as such liability is an exception to the Pennsylvania Fair Share Act, 42 Pa.C.S. Section 7102. When dram shop liability is involved, the licensee may be jointly and severally liable for the entire judgment awarded to a plaintiff. Even if the licensee is apportioned a minimal amount of liability and the AIP is assigned the majority of liability, the licensee will nevertheless be on the hook for the entire judgment. A savvy plaintiff will strive to establish dram shop liability against the licensee, recognizing that oftentimes the licensee may have more assets that could be used toward a judgment than those of an AIP.

In order to avoid the liability implications associated with a liquor license, bars may use corporate structures to isolate the licensee from other related entities. For example, a separate business entity may be created and used to hold the liquor license. Pennsylvania courts have held this practice is not illegal per se and is acceptable under Pennsylvania law. See Mortimer v. McCool, 255 A.3d 261, 270 (Pa. Super. 2021). Yet, when a licensee does not have enough assets or any insurance to satisfy a judgment in full, a plaintiff may try to pierce the corporate veil in order to gain access to additional assets.