Arizona's Dram Shop Act — Can You Sue the Bar?

Way back in the day, the law in most states held that injuries caused by an intoxicated person were solely the responsibility of that person. You couldn’t sue whoever sold them the alcohol. Times have changed. Arizona’s Dram Shop Act — A.R.S. § 4-311 — now allows victims to hold bars, restaurants, and liquor stores liable when they serve alcohol irresponsibly.

What Is the Dram Shop Act?

The term “dram shop” is an old English term for a tavern or bar where spirits were sold by the dram (a small measure). Arizona’s Dram Shop Act creates a cause of action against a licensed liquor establishment when that establishment serves alcohol to a person who is obviously intoxicated, and that person then causes injury to someone else.

What You Must Prove

To hold a bar or restaurant liable under Arizona’s Dram Shop Act, you must show that the establishment is a licensed liquor seller, they served alcohol to a customer, the customer was obviously intoxicated at the time of service, and the intoxicated customer caused your injuries.

The key phrase is “obviously intoxicated.” This means visibly, noticeably drunk — slurred speech, stumbling, glassy eyes, inability to function normally. It’s not enough that the person was legally over the .08 BAC limit. The bartender or server had to be able to see that the person was impaired and chose to keep serving anyway.

Why This Matters for DUI Accident Victims

If you were hit by a drunk driver, your primary claim is against the driver. But the driver may have limited insurance — Arizona only requires $25,000 minimum liability. A bar or restaurant, on the other hand, typically carries much higher liability insurance. Adding the establishment as a defendant can dramatically increase the pool of money available to compensate you.

Social Host Liability

What about house parties? Arizona’s Dram Shop Act applies specifically to licensed establishments. Social hosts — people who serve alcohol at private parties — generally do not have the same statutory liability. However, there are exceptions. Under A.R.S. § 4-301, it’s illegal to serve alcohol to someone under 21. If a social host serves minors who then cause an accident, the host may face both criminal and civil liability.

Statute of Limitations

The standard two-year statute of limitations applies to dram shop claims. Evidence in these cases is especially time-sensitive — bar receipts, credit card records, surveillance footage, and witness memories all degrade quickly. Contact an attorney as soon as possible after a DUI-related accident.

The Law Badgers Fight on Every Front

When a drunk driver injures you, we don’t just go after the driver. We investigate where they were drinking, how much they were served, and whether the establishment bears responsibility. That’s how we maximize your recovery.