Understanding Minnesota’s Dram Shop Law

What Is Dram Shop Liability?

Dram shop liability means that if a business sells alcohol unlawfully to someone who then goes on to cause harm due to their intoxication, the business can be held liable. This law usually applies to bars, restaurants, and liquor stores. In most cases, “unlawfully” serving alcohol means:

• Selling alcohol to someone who is already intoxicated
• Selling alcohol to someone under 21
• Selling alcohol during prohibited hours or without a proper license

Dram shop laws are designed to promote responsible alcohol use and reduce drunk driving and other crimes, and research shows that they work. Multiple studies have found strong evidence that dram shop liability is effective in reducing excessive alcohol consumption and related harms.

Minnesota's Dram Shop Law

Under Minnesota law, vendors can be held liable for damages resulting from the illegal sale of alcoholic beverages. (See Minnesota Statute § 340A.801.) Illegal sales include the following:

• Sales to obviously intoxicated persons: It is unlawful in Minnesota to sell alcohol to someone who is visibly intoxicated. Obvious signs include slurred speech, unsteady gait, and impaired coordination.
• Sales to minors: Selling alcohol to individuals under 21 is prohibited, regardless of their apparent sobriety. 
• Other prohibited sales: This includes sales during unauthorized hours, on prohibited days, or without a proper license.

If the intoxicated party injures anyone, Minnesota law grants the victim the right to file a lawsuit against the vendor that supplied the alcohol. For example, if a bar served drinks to someone who was clearly intoxicated, leading to a drunk driving crash, anyone injured in the accident could demand fair compensation from the bar.

Key Elements of a Dram Shop Claim

To file a successful claim against a dram shop in Minnesota, the following elements must be proven:

1. Illegal sale of alcohol: The establishment must have made an illegal sale, such as serving alcohol to a minor or a visibly intoxicated person.
2. Causation: The illegal sale must have contributed to the individual's intoxication, which directly caused injury or damage to the plaintiff (e.g., the person drank the alcohol and became more intoxicated).
3. Damages: The victim must have sustained actual damages, such as bodily injury, property damage, or lost wages because of the intoxicated person’s actions.

You likely have grounds for a dram shop liability claim if these standards are met. Your attorney must provide a written notice to the vendor within 240 days after hiring them to represent you in the claim. The statute of limitations is two years from the date of the injury or loss.

Who Can File a Dram Shop Claim?

Under the Minnesota dram law statute, eligible parties for a claim include:

• Family members: Including spouses, children, parents, and guardians who have been directly harmed or have suffered losses due to the actions of the intoxicated individual
• Employers: An employer who experiences property damage or other losses because of an employee's intoxicated actions
• Other injury victims: Any person who has sustained personal injuries, property damage, or loss of support as a result of the intoxicated person's conduct

However, the person who was illegally served alcohol and became intoxicated is not entitled to compensation for any damages they may have suffered. The statute is designed to protect the rights of third parties harmed by the drunk person's actions, not the drunk person.

Real World Examples

Dram shop liability laws aren’t hypothetical in Minnesota. This statute has been cited in court multiple times. We’ve seen it firsthand.

One of our clients was a backup goalie for the University of Minnesota-Duluth hockey team. He was driving home with his fiancée after a hockey game when a drunk driver cut in front of them. The collision left our client with a permanent upper back injury, ending his promising hockey career.

The injury not only caused physical pain but also led to severe depression, anxiety, and cognitive impairments like short-term memory loss, making it nearly impossible for him to continue as a college student.

The drunk driver fled the scene but was caught four hours later with a blood alcohol level of 0.11. Evidence revealed that he had been drinking at a Duluth bar for almost seven hours, consuming an estimated 12 to 14 strong beers.

Despite this, the bar denied responsibility, claiming the drunk driver was not intoxicated when he left their establishment. But using toxicology reports and eyewitness testimony, SiebenCarey attorneys proved that the bar had served alcohol to the driver when he was already visibly intoxicated, violating state law. This meant that under Minnesota's dram shop laws, both the drunk driver and the bar shared responsibility for the accident.

Once the facts were clear, a jury awarded our client significant compensation for his medical expenses, emotional suffering, and loss of future opportunities.

Social Host Liability in Minnesota

While Dram shop laws apply to vendors who sell alcohol, individuals who provide alcohol to underage drinkers for free can also be held responsible under Minnesota law. This is known as a social host liability law. When an adult knowingly provides alcohol to a person under 21 years old, and the intoxicated minor causes injury or damage, the victim can seek compensation from the negligent adult.

Unlike dram shop laws, this rule does not cover a host serving alcohol to an intoxicated adult or serving alcohol without a license. Hosts are not held to the same standards as commercial vendors and are not liable for the actions of guests aged 21 or older.

Get Help from Minnesota’s Trusted Personal Injury Lawyers

Understanding dram shop liability can make a world of difference for victims of alcohol-related accidents. If you or a loved one are injured due to the actions of an intoxicated person, you deserve justice and fair compensation.

As one of the oldest injury law firms in Minnesota, SiebenCarey has spent decades helping injury victims get the support they need after an accident. We’re ready to use that experience to help you hold negligent drivers and businesses accountable.

When you partner with SiebenCarey, you’ll benefit from:

• More than 70 years of experience navigating Minnesota injury law
• A proven record of successful settlement negotiations and jury trials
• Comprehensive resources to build your claim
• A team of award-winning lawyers backed by experienced paralegals and in-house investigators
• The “Know Your Rights” guarantee of personal care and clear communication

Don’t face the aftermath of an accident alone. Schedule a free consultation today, and let us fight for your rights so you can focus on healing.