Indiana Dram Shop Act Get your
Free Consultation
Custy Law Firm | Accident & Injury Lawyers

June 24, 2019

Indiana Dram Shop Act

The first question a person might ask is, “What is a dram shop?”  A dram shop typically refers to a bar or tavern, but Indiana’s law extends liability beyond these traditional venues to any person or entity who furnishes alcoholic beverages to an intoxicated person.  Ind. Code § 7.1-5-10-15.5.  This means that the owner of a bowling alley where alcoholic beverages are served, a charity event that serves wine, or even a wedding with an open champagne bar could all fall within the purview of the Indiana Dram Shop Act.

There are three common defenses under the Act that may provide some protection from lawsuits:  not being the actual furnisher of the alcoholic beverage, not having knowledge that the person to whom alcohol was furnished was intoxicated, or that person’s intoxicated state not being the proximate cause of the harm.

A.    Furnishing Alcohol

Indiana law states that “furnish” means to barter, deliver, sell, exchange, provide, or give away.  Indiana courts have interpreted this not to include simply providing money for another to purchase an alcoholic beverage.  See Rogers v. Martin, 651 N.E.2d 305 (Ind. Ct. App. 1995).  Nor does a provider furnish alcohol where they merely provide the alcohol for an intermediary or reseller to distribute.  See Weida v. Dowden, 664 N.E.2d 742 (Ind. Ct. App. 1996).  However, keep in mind that giving drinks away does count as furnishing – and providing alcohol to underaged minors is also considered furnishing under the Act.

B.    Lack of Knowledge

Knowledge of intoxication can be implied in various ways by looking at the surrounding circumstances.  First, knowledge of intoxication can be implied where a person has been repeatedly served by the same waiter.  Additionally, mere carelessness as to who has access to alcohol can trigger liability because courts may find that lack of monitoring who the ultimate consumer is and how much that consumer has had to drink may constitute a reason to know that some will become intoxicated as a result.  Muex v. Hindel Bowling Lanes, Inc., 596 N.E.2d 263 (Ind. Ct. App. 1992).  However, if there is no indication that a person was visibly intoxicated or behaving in a manner that would lead a person to suspect they were intoxicated, then furnishing them with alcohol ordinarily will not trigger liability under the Indiana Dram Shop Act.

C.    Proximate Cause

Indiana’s liability law for furnishing alcoholic beverages to intoxicated persons is framed as an “and.”  What this means is that, to establish liability, a person or entity must:  (1) furnish the alcohol; (2) to a person known by the one furnishing the alcohol to be visibly intoxicated; and (3) the intoxication must be the proximate cause of the death, injury, or damage.  Here, furnishing alcohol will likely be considered the proximate cause where the intoxicated person acts recklessly or negligently to cause harm.  However, intentional acts such as criminal mischief will sometimes be seen as beyond the scope of liability from the mere furnishing of alcohol.  See Merchant’s Nat’l Bank v. Simrell’s Sports Bar & Grill, 741 N.E.2d 383, 389 (Ind. Ct. App. 2000).

Understanding your options if you or a loved one has been injured as a result of an intoxicated person can be a complex and nuanced process.  Each case often has a unique set of facts that courts will inquire into in order to determine liability.  If you or a loved one has been harmed, we are available to help review those facts with you and assist you in navigating your options.

In The News

Dec 01
The Most Common Causes of Car Accidents

While some car accidents may be unavoidable and not any driver’s fault, such as a deer jumping into the road, most car accidents are preventable. There are many reasons or […]

VIEW ALL NEWS
Why Is the Black Box Important in Truck Accidents?
Nov 01

The roads and highways of Indiana are full of large commercial trucks that transport goods across the state and country. The value of any given truck’s cargo is incredibly high, […]

What You Need to Know About Minors and Indiana Motorcycle Helmet Laws
Oct 01

Motorcycles are unique vehicles. They are a source of fun, entertainment, and convenient transportation. They’re particularly popular with young riders and passengers under 18. However, if you want to let […]

How Will I Know If I Have a Personal Injury Claim?
Sep 01

Unfortunately, many Americans are hurt in accidents each year. The National Safety Council estimates that there were more than 55 million injuries in 2020. If you were injured in an […]

Why Posting on Social Media After an Accident Can Hurt Your Case
Aug 28

You may have heard of “oversharing.” The term refers to sharing pictures or ideas too often or posting too much personal information online. Typically, oversharing is simply an annoying habit. […]

Testimonials

Custy Law Firm has redeemed the reputation lawyers face in the legal field. I’m so grateful for their professionalism, their communication skills as well as their knowledge of the law. […]

- Yolonda M

Brian and his team were extremely helpful to us in resolving our case (related to personal injury from a traffic accident).  Brian listened to what our goals were for the […]

- Saroj S.

As a medical professional, I would like to testify that Mr. Brian Custy is the best attorney I met in Indiana. I trust his knowledge, experience, and professionalism. The firm […]

- Fei L.

From the first visit at Custy Law , I felt completely comfortable that my Auto accident would be taken care of. It was as if a huge weight was lifted […]

- Glenn H.

I am extremely happy with the quality of service and guidance I have received with Custy. His staff are amazing and he is very professional and down to earth. He […]

- Erin C.

Custy Law Firm provides the highest level of professional and ethical services to its clients. Brian Custy and staff are deeply committed to obtaining justice for those harmed by the […]

- Lisa C.

My experience with The Custy Law Firm has been nothing short of fantastic. I knew very little after PA school regarding the reading, understanding, and negotiating of contracts when accepting […]

- Monica B.

We’ve known Brian for a long time and he’s excellent on many levels. He has always focused on learning, achieving his goals, and operating ethically. He’s friendly, hard-working, very professional, […]

- Jenne C.

Brian Custy helped me at a time I needed someone I could trust.  He was attentive, positive, thorough, knowledgeable, and professional in every exchange.

- Judy M.

To some they would think my case as minimal. Custy Law Firm treated me with the most respect and consideration. Thank you CLF.

- William C.

I originally tried to use our legal counsel from my union. I was getting lowball offers, and after I refused to accept their offer, I was fired by my very […]

- RYAN D.

Since day one i have received the best service that anybody can ask for. Mr. Custy and Melissa have been such caring and trustworthy people. They really make you feel […]

- Joel Marquart

“Mr. Custy is an excellent lawyer that not only takes care of business but actually takes the time to listen to his clients. Mr. Custy cares and that is why […]

- CARLOS G

I have had the pleasure of working with Attorney Custy for the past two years on two cases at the same time. This has been the hardest thing I have […]

- ANGIE R.

“Brian Custy is a terrific lawyer that takes the time to walk you through the entire process, explaining all of the details that often times get overlooked. His follow-up was […]

- COREY O.

“Mr. Custy is a very good lawyer. He goes out of his way to make sure he is doing the best he can for your case. He is always there […]

- ALICE B.

“ Custy Law Firm | Accident & Injury Lawyers has gone above and beyond while working on my case. I was injured on the job and Brian has given me […]

- TIFFANY G.
View All Testimonials
American Association for Justice Logo
Illinois State Bar Association Logo
Academy of Truck Accident Attorneys
National Trial Lawyers top 100 Attorneys Logo
NTL Top 10 for Trucking Litigation
National Institute for Trial Advocacy
Indiana Trial Lawyers Assocation
Trial Lawyer's College Thunderhead Ranch Logo
American Association for Justice Logo
National Association of Distinguished Counsels
American Association for Justice Logo

GET YOUR FREE

CASE EVALUATION