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Dram Shop Laws in Iowa & What They Mean for Alcohol Vendors

Robert Stahle • June 7, 2018
Dram Shop Laws in Iowa

A dram shop is an establishment, such as a bar or tavern, where alcoholic beverages are sold. Dram shop laws are specific laws that govern over these establishments and their liability should someone become injured due to the actions of an intoxicated patron.

Every state has dram laws. In certain states, like Iowa, dram shop laws allow for an injured person to file a lawsuit against the bar or establishment that served a patron to the point of intoxication which then resulted in behaviors that harmed others.

An example of such a lawsuit is when a person is injured by a drunk driver and chooses to take legal action against the establishment that served the intoxicated driver alcohol before they entered their car.

The Iowa Dram Shop Act

The Iowa Dram Shop Act, found in code section 123.92, outlines that a vendor who has obtained a license or permit to sell alcohol can be held liable for injuries to a person if their sale of alcohol to another person resulted in the harm or injury. This liability to applies to when a vendor serves alcohol to a person who is, or appears to be, intoxicated.

Are Social Hosts Held to the Same Liability Under the Iowa Dram Shop Act?

The fact that vendors of alcoholic beverages can be held liable for personal injury damages raises the question about liability if alcohol is served in a social setting at private residence, or by someone who is not a licensed vendor. For example, if a person hosts a party at their home and serves alcohol, are they held to the same liability laws as a licensed establishment?

In Iowa Code section 123.49, it states that social hosts who provide alcohol cannot be held liable if one of their guests becomes intoxicated and then causes injury to another person due to their intoxication.

Exceptions for Complicity

There are special circumstances that can limit an injured person’s right to damages under the Iowa Dram Shop Act, one of which is complicity.

Complicity refers to a person who encouraged or participated at their own free will in the drinking that led to the intoxication of the person who caused injury. For example, there are two men drinking together at the bar. Over the course of the evening, they buy each other drinks. At some point, a heated argument between them takes place and one of them throws a glass bottle that hits the other one in the head, causing injuries.

If any other patron were hit by the bottle, they could attempt to recover damages from the establishment. However, since the injured party participated in the acts that led to intoxication, and even bought the other person drinks, he would be considered complicit, and therefore his claim would be barred.

Know Your Rights

As a licensed vendor of alcoholic beverages or even as a social host, you have an incredible responsibility on your shoulders. When someone is injured by an intoxicated individual, they’re looking for answers and compensation, and they’ll naturally turn to you. We have experience working with the Iowa Dram Shop Act and know how to protect the assets and reputation of your business or home. Contact Fitch & Stahle Law Offices for a free consultation.

By Robert Stahle July 28, 2025
Including Dram Shop Liability
By Robert Stahle July 16, 2025
How a Sioux City Personal Injury Attorney Can Help You Seek Justice Each year, drunk driving crashes leave thousands injured or killed—causing devastating emotional, physical, and financial consequences. Despite strict DUI laws and public awareness campaigns, impaired drivers continue to pose a serious threat across Iowa, Nebraska, and the country. For victims, the aftermath of a drunk driving accident is more than just painful—it can be life-altering. At Fitch & Stahle Law Firm , we fight to hold negligent drivers (and sometimes even the businesses that served them) accountable under the law. If you’ve been hurt in a crash involving a drunk driver, we’ll explain your legal options, including how Nebraska’s Dram Shop law may play a role in your case. Why File a Drunk Driving Lawsuit? Driving under the influence of alcohol or drugs is not just illegal—it’s a reckless act that endangers everyone on the road. When a driver chooses to get behind the wheel impaired, they can (and should) be held civilly liable for the damage they cause. While a criminal DUI case focuses on punishing the offender, a civil personal injury lawsuit is about helping you rebuild. It allows you to pursue compensation for: Medical expenses (past and future) Lost wages and diminished earning capacity Pain and suffering Emotional trauma Property damage Rehabilitation costs Punitive damages (in cases of extreme recklessness) Nebraska’s Dram Shop Law: Holding Alcohol Providers Accountable Under Nebraska’s Dram Shop Law , victims of drunk driving accidents may also be able to file a lawsuit against the business or establishment that overserved the intoxicated driver. Here’s how it works: A licensed alcohol vendor (such as a bar, restaurant, or event venue) can be held liable if they served alcohol to a visibly intoxicated person or a minor , and that person later caused injury or death. Nebraska law limits these claims to commercial sellers of alcohol—not social hosts. A dram shop claim can help recover damages if the drunk driver lacks adequate insurance or personal assets. This area of law is complex, and not all attorneys are familiar with how to navigate the strict requirements and timelines involved in dram shop litigation. That’s why working with a firm like Fitch & Stahle , which handles cases in both Nebraska and Iowa , is crucial. What Needs to Be Proven in a Drunk Driving Case? To recover damages in a drunk driving lawsuit, your legal team must prove the following: Duty of care – The driver had a legal responsibility to drive safely. Breach of duty – That responsibility was violated by driving impaired. Causation – The impairment directly led to the accident and your injuries. Damages – You experienced real harm—such as medical costs, lost income, or emotional distress. In dram shop cases, your lawyer will also need to demonstrate that the bar or establishment served a visibly intoxicated individual who went on to cause the crash. Why You Need a DUI Injury Lawyer in Nebraska or Iowa Drunk driving cases are rarely straightforward—especially when multiple parties may share liability. Insurance companies will often try to minimize payouts, shift blame, or dispute your injuries altogether. At Fitch & Stahle Law Firm , we will: Preserve key evidence such as police reports, BAC results, surveillance video, and eyewitness accounts Analyze potential dram shop liability Work with medical and accident reconstruction experts to build your case Identify all available sources of compensation Aggressively negotiate with insurance companies—or take your case to trial if needed Our team has deep experience with Nebraska’s unique dram shop provisions and Iowa’s liability standards. We understand what it takes to hold all negligent parties accountable. What Damages Can You Recover? Depending on the specifics of your case, compensation may include: Economic damages : Medical bills, lost income, future treatment costs, property loss Non-economic damages : Pain, suffering, mental anguish, loss of companionship Punitive damages : Intended to punish especially reckless conduct—like drunk driving In cases where dram shop liability applies, these claims can be especially valuable when the at-fault driver is underinsured or has no assets. Time Is Critical – Act Now In Nebraska, the statute of limitations for personal injury and dram shop lawsuits is typically four years , but specific timelines may apply depending on the facts of your case. Evidence like surveillance footage and eyewitness memories can fade fast—so it’s essential to speak with an attorney right away. Get Help from a Sioux City Personal Injury Attorney Who Understands Nebraska Dram Shop Law If you or a loved one has been injured by a drunk driver—especially one who may have been overserved at a Nebraska bar or restaurant—you have the right to seek full and fair compensation. At Fitch & Stahle Law Firm , we’ve helped countless clients across Sioux City , Iowa , and Nebraska recover after devastating crashes. We’ll handle the legal details so you can focus on healing. Call us today for a free consultation — and let’s start fighting for the justice you deserve.