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 Kentucky, dram shop laws are codified in Kentucky Revised Statutes (KRS) 413.241. This statute holds that a licensed drinking establishment, such as a bar, restaurant, or liquor store, can be held liable for damages caused by an intoxicated person if it is proven that the establishment sold or served alcohol to that person when they were already visibly intoxicated, or if they served alcohol to a minor. The law aims to encourage responsible serving practices by holding establishments accountable for contributing to the intoxication of individuals who may pose a risk to themselves or others. It is important to note that the application of dram shop laws can be complex and may require the expertise of an attorney to navigate specific cases.