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Dram Shop Laws Explained

Robert Stahle • July 9, 2021

When an intoxicated person who was over-served at a bar or restaurant goes on to cause an injury, who is liable? Does the establishment hold any responsibility? Questions such as these are answered in what is known as dram shop laws. Both Iowa and Nebraska have dram shop laws in place that allow an injured person to seek damages against the person or business that provided the alcohol.

Here at Fitch and Stahle Law Office, our team of attorneys specializes in wrongful death cases , including those that fall under the smaller purview of dram shop laws. Here is what you need to know about the law.

What is Dram Shop Liability?

The first thing you’re likely asking is, what exactly is a dram? A dram is a small unit of measurement that bars and restaurants used to sell alcohol. Though that term is not used much anymore, the term dram shop law is still in effect. Dram shop liability refers to the civil liability that can be imposed against a bar or tavern. It may also extend to other establishments that sell alcohol, such as restaurants or clubs. In places with dram shop laws, the establishments may be held liable for civil damages if they provided alcohol to a customer who later got into an accident and harmed someone else.

Nebraska Dram Shop Laws

The dram shop law in Nebraska, as outlined in Nebraska Revised Statutes section 53-404, states that “any person who sustains injury or property damage, or the estate of any person killed, as a proximate result of the negligence of an intoxicated minor shall have, in addition to any other cause of action available in tort, a cause of action against:

A social host who allowed the minor to consume alcoholic liquor in the social host’s home or on property under his or her control

Any person who procured alcoholic liquor for the minor

Any retailer who sold alcoholic liquor to minors.

Iowa Dram Shop Laws

The dram shop laws in Iowa are slightly different. While in Nebraska, the establishment is only liable if a minor is involved in an alcohol-related accident, Iowa law states that an alcohol vendor can be held liable for the damages or injuries caused by an intoxicated person if the vendor sold alcohol to the patron while the patron was “visibly intoxicated.” Note that the Iowa dram shop applies to everybody who was over-served alcohol, not just minors.

An Example of Dram Shop Law

The following is a situation where dram shop laws would come into play. Suppose that Dan stops into a bar for a few drinks. The bartender, David, notices that Dan is becoming intoxicated after a succession of drinks, but David continues to serve Dan anyway. After a few drinks, Dan heads for the exit but knocks over Donna on the way, injuring her. Donna can bring a dram shop claim against both Dan and the bar in the state of Iowa.

Siouxland Dram Shop Defense

For more information about dram shop laws or to file a wrongful death claim, contact the professionals at Fitch & Stahle Law Office at (404) 494-3012.

By Robert Stahle June 25, 2025
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