Complexities and Challenges of Pa. Liquor Liability Law

Despite the heightened awareness of the dangers of drinking and ­driving, thousands of people are killed in alcohol-impaired driving crashes each year, accounting for nearly one-third (31 percent) of all traffic-related deaths in the United States. In Pennsylvania, the General Assembly responded to this problem by adding a provision, Section 4-493(1), to the Pennsylvania Liquor Code, 47 Pa. Stat. 
Section 1-101 et seq. This provision prohibits a liquor licensee, such as a bar or ­restaurant, from selling liquor to a ­visibly intoxicated individual or a minor. The ­licensee can be held liable for any ­damages resulting from a violation. Liability has been limited to those persons licensed to sell intoxicants by the decisions of Pennsylvania courts, not permitting the imposition of ­liability upon social hosts for serving ­visibly intoxicated guests over the age of 21.

Lawsuits for dram shop violations fall into two categories: first- and third-party cases. In a first-party case, the plaintiff is the person to whom alcoholic drinks were served despite being visibly intoxicated and who later suffered injuries as a result. While some states prohibit first-party cases on public policy grounds, Pennsylvania is one of a minority of states that allow the patron to recover damages from the ­business establishment that sold them drinks. First-party cases have been criticized because they allow the intoxicated persons to recover compensation for injuries they caused; however, the purpose of the dram shop law is to protect “the general public” from injuries, which also includes the patron. Nevertheless, first-party dram shop cases can be very difficult to win because juries often believe individuals should be ­responsible for their actions. By contrast, in a “third party” case, the injured ­person is someone other than the intoxicated person who suffers harm from the acts of the ­intoxicated person. A third-party dram shop claim provides a legal mechanism to hold an establishment liable for serving someone visibly intoxicated who then ­injures another person.