Most states have a dram shop law to deter providers of alcoholic beverages (servers, liquor stores, bars, restaurants) who sell or serve alcoholic beverages under authority of a license or permit from selling or serving alcoholic beverages to obviously intoxicated individuals.
These laws generally eliminate any liability of servers, liquor stores, bars, and restaurants when a person to whom they sell or serve alcohol causes personal injury or property damage—whether in an automobile accident, a fight, or other incident—unless the person to whom they sell or serve alcohol is obviously intoxicated.
Laws regarding dram shop liability vary from state to state and are usually located in a state’s statutes.
In Alabama, dram shop laws are codified under the Alabama Code Section 6-5-71. These laws allow for a cause of action against alcohol vendors, such as bars, restaurants, and liquor stores, for damages caused by the sale or service of alcohol to a visibly intoxicated person. If such an individual goes on to cause injury or property damage, the establishment that provided the alcohol may be held liable. This includes situations where the intoxicated person causes a car accident, gets into a fight, or is involved in another incident that results in harm. It is important for establishments that serve alcohol to be vigilant in recognizing signs of obvious intoxication to mitigate the risk of liability under Alabama's dram shop laws.