Michigan’s “Dram Shop” Law: Reducing Drunk Driving by Holding Bars and Restaurants Accountable

Michigan is one of over 30 states nationwide that have enacted so-called “dram shop” laws designed to prevent establishments that serve alcohol from selling to minors or serving adult customers who are visibly intoxicated. While this law is intended to protect Michigan motorists and pedestrians, it’s perhaps something of a catch-22 for restaurateurs. That’s because bar owners obviously stand to lose money if they’re forced to limit alcohol sales. But, at the same time, if they over-serve customers who become intoxicated and subsequently cause harm to others, the law makes it possible for the restaurants, bars, and/or their employees to be sued for damages – which could end up being far more costly in the long run!

Consider, for example, this recent Michigan case, where three different bars are all being sued following the actions of one customer who drank at each establishment before allegedly killing two people while driving under the influence. Those bars could be slammed with enormous financial penalties if it’s determined they failed to follow the state’s dram shop law.

Briefly, the Michigan dram shop law of 1998 requires liquor licensees (i.e., anyone who has been legally authorized by the state to sell alcohol) to abide by the following: “A retail licensee shall not directly, individually, or by a clerk, agent, or servant sell, furnish, or give alcoholic liquor to a minor except as otherwise provided in this act. A retail licensee shall not directly or indirectly, individually or by a clerk, agent, or servant sell, furnish, or give alcoholic liquor to an individual who is visibly intoxicated.”

Beyond that basic prohibition of alcohol sales to minors and noticeably drunk customers, Michigan’s dram shop law allows individuals (and closely related family members) who were injured by intoxicated motorists to file personal injury civil lawsuits against both the intoxicated person who caused their injuries and the liquor license holder who served the alcohol.

Here are the particulars (again quoting from Michigan’s Liquor Control Code enacted in 1998):“An individual who suffers damage or who is personally injured by a minor or visibly intoxicated person by reason of the unlawful selling, giving, or furnishing of alcoholic liquor to the minor or visibly intoxicated person, if the unlawful sale is proven to be a proximate cause of the damage, injury, or death, or the spouse, child, parent, or guardian of that individual, has a right of action in his or her name against the person who by selling, giving, or furnishing the alcoholic liquor has caused or contributed to the intoxication of the person or who has caused or contributed to the damage, injury, or death. In an action under this section, the plaintiff has the right to recover actual damages in a sum of not less than $50.00 in each case in which the court or jury determines that intoxication was a proximate cause of the damage, injury, or death.”

The sum of “not less than $50.00” is absurd, of course, since these days “actual damages” for such injuries can rise into six figures or higher. For instance, the case we mentioned above calls for damages in excess of $25,000 from the multiple defendants.

Safety Measures for Patrons and Establishments Alike

 
We understand that we’ve just provided a lot of information and some complicated legalese to sort through. So, to help everyone who sells, serves, drinks, or shares alcohol, we’ve put together the following tips to remain cognizant of so we can safely celebrate summer in our beautiful Great Lakes State!

Advice for social drinkers:

• Please be kind and considerate to bartenders and servers. They’re just doing their job by following the dram shop law’s requirements. And, by helping you consume alcohol safely and in moderation, they’re actually doing you a favor!
• Drink responsibly and know your limit when it comes to alcohol consumption. You can refer to this handy calculator that helps you determine your potential blood alcohol concentration based upon your body weight, your gender, what you’ve been drinking, and how many hours it’s been since you started. Remember that the legal limit in Michigan is less than .08 BAC if you’re age 21 or older, and less than .02 if you’re under age 21. Furthermore, the state’s impaired driving law provides for “enhanced penalties for anyone caught driving with a BAC of .17 or higher. However, drivers can be arrested at any BAC level if they exhibit signs of impairment while operating a motor vehicle.” By the way, the Michigan Council on Alcohol Problems is lobbying to cut the legal limit for alcohol in Michigan to .05 BAC – a move that’s been recommended by the National Transportation Safety Board.
• Pick a designated driver, call for a taxi or arrange other transportation whenever you plan to imbibe.

Advice for bar and restaurant owners:

• Mandatory server training for supervisors and other employees is available from a number of resources approved by the Michigan Liquor Control Commission. Take advantage of these opportunities to protect yourself and your business from legal risks associated with the dram shop law and charges of negligence.
• Compel every employee in your establishment who serves alcohol to read the Michigan Liquor Control Commission’s 44-page Guide for Liquor Retail Licensees. This spells out applicable laws and includes quizzes to educate employees on serving customers in line with legal requirements.
• Strictly control drink mixing rules in your establishment to be sure beverages are prepared properly and don’t contain excessive alcohol. Carefully manage your liquor inventory and monitor bar staff to minimize “free pouring” or “overpouring” that can cost you money – not to mention possibly increasing your establishment’s risk of disobeying the dram shop law.
• Have your servers card every customer every time. And be sure they know the dates when bar patrons reach legal age to buy and consume alcohol in Michigan. This year, anyone ordering alcohol must have been born before today’s date in 2002, no exceptions. Here’s a handy online legal age calculator you can share with your employees. Remember, if you can prove that you or your employees carded a customer, it’s a valid legal defense for your business. Specifically, the law states, “in an action alleging the unlawful sale of alcoholic liquor to a minor, proof that the defendant retail licensee or the defendant’s agent or employee demanded and was shown a Michigan driver license or official state personal identification card, appearing to be genuine and showing that the minor was at least 21 years of age, is a defense to the action.”

Advice for bartenders and restaurant servers:

• Be polite and courteous to avoid being victimized by angry customers. If you’re confronted by a disgruntled drinker, explain that the law is not something you control, and ask for help from a fellow server or manager. If they won’t come to your assistance, don’t hesitate to call local law enforcement if you fear for your safety.
• Get trained and certified to serve alcohol so that you’re fully aware of state dram shop law. Having this valuable server training credential on your resume can also help you get hired for the best possible career opportunities in the state’s booming restaurant industry.
• Avoid drinking on the job. If you’re intoxicated yourself, your judgment regarding the sobriety of your customers might be less than ideal. This, of course, could lead to you inadvertently disobeying the dram shop law, putting yourself and your employer at risk.

And finally, advice for party hosts:

• Mind the age of the party guests you serve — and the quantities of alcohol you serve them. While the dram shop law doesn’t specifically apply to private individuals who invite guests to celebrate in their homes, Michigan does impose “social host” liability on anyone who serves alcohol at parties, weddings, special events, or even family gatherings. Essentially, that means it’s illegal to provide alcohol to minors or to people who appear to be intoxicated. Serving alcohol to people under age 18 can even result in criminal charges being lodged against you, with a $1,000 fine and up to 60 days in jail for a first offense.

We Give a “Dram” About Our Clients!

 
Puns aside, if you or someone you love are injured by someone driving under the influence, it’s entirely possible that an irresponsible bartender or restaurant server contributed to the cause of your pain and suffering. Which means Michigan’s dram shop law could possibly work in your favor, helping you to be fairly compensated for the losses you’ve experienced resulting from your injuries. There’s one good way to find out for sure – call us. The number to dial is 855-645-3946 (855-MIKE-WINS), or you can always get in touch with us online as well. Remember that time is of the essence when establishing a winning personal injury case, so don’t wait too long to contact us if you’ve been hurt!

Content checked by Mike Morse, personal injury attorney with Mike Morse Injury Law Firm. Mike Morse is the founder of Mike Morse Law Firm, the largest personal injury law firm in Michigan. Since being founded in 1995, Mike Morse Law Firm has grown to over 200 employees, served 40,000 clients, and collected more than $1.5 billion for victims of auto, truck and motorcycle accidents. The main office is in Southfield, MI but you can also find us in Detroit, Sterling Heights and many other locations.