Drunk driving is a serious scourge in Michigan and causes thousands of deaths and injuries annually. Were you injured in an auto accident by a drunk driver in Michigan? Michigan is one state that allows a personal injury victim to sue a business for offering alcohol to a visibly intoxicated guest or a minor. These are called Dram Shop laws, and in some cases, Michigan law also makes a social host liable for injuries that a drunk minor causes.
Learn about Dram Shop liability below, and talk to a drunk driving accident attorney immediately if you have a case. Your attorney may help you receive just compensation for your medical bills, lost earnings, pain and suffering, mental anguish, and more.
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Understanding Dram Shop Laws
Under American law centuries ago, bars were not liable for damages their intoxicated customers caused. Courts stated that alcohol consumption, not the supply or purchase of it, was to blame for auto accidents, injuries, and deaths. This legal thinking pins liability on the drunk person, so it makes sense on one level.
However, there’s a problem. It may leave an innocent drunk driving victim without a way to receive justice and compensation for their losses. Drunk drivers often lack auto insurance or assets. Thus, a drunk driving victim can end up unable to obtain any compensation at all, unless possibly from their uninsured driver coverage. So, in the 1950s, many states started passing Dram Shop laws.
Long ago, bars sold alcohol by a ‘dram’ measurement, which is how the name Dram Shop laws started. In the modern era, Dram Shop laws usually focus on bars, restaurants, and liquor stores that sell to customers who are clearly drunk or underage.
Also, many states have a social host aspect to their Dram Shop law. A social host is a person who has a party at their home and serves alcohol to minors. The laws of many states will hold the social host liable if an intoxicated minor injures someone in a car accident.
What Is Michigan’s Dram Shop Law?
The Dram Shop law in Michigan states that it is illegal for a retail establishment to sell, furnish, or give alcohol to someone under 21 or who is ‘visibly intoxicated.’ A person who suffers an injury in a car accident because a bar, restaurant, or liquor store sold alcohol illegally can sue them for damages.
For example, let’s say a young woman stops at a bar in Detroit for a few beers. Although the woman is slurring her speech and can’t walk without stumbling, the bartender keeps giving her beers so they can get a tip. Several hours later, the woman drives away from the bar and hits you on your bike. You have serious injuries.
In Michigan, you can likely file a personal injury lawsuit against the woman personally for violating her duty of care. You also can probably file a lawsuit against the bar for serving alcohol to an intoxicated patron. Your personal injury attorney would seek eyewitness testimony from employees and guests to prove that the woman was obviously drunk and was still served.
If the woman was under 21, you can sue the bar even if she wasn’t intoxicated. The fact that the woman was under 21 alone is sufficient for a Michigan Dram Shop claim.
Social Host Liability In Michigan
The Dram Shop law in Michigan only applies to bars, liquor stores, and restaurants. The state lacks a social host law, but that doesn’t mean that someone who served alcohol illegally at home escapes liability.
Michigan law states that it is a misdemeanor for anyone to sell or provide alcohol to someone underage. It also is a crime not to make a ‘diligent inquiry’ about a person’s age before giving or selling them alcohol.
Violating this law in Michigan means there is a presumption that the party who provided the alcohol was reckless or negligent. Thus, they may be legally liable for injuries and damages that result.
Suppose a 17-year-old boy goes to a party hosted by a neighbor across the street. The homeowner provides an open bar, and the boy has four drinks. The young man is drunk, and he and someone else fall off the back deck and suffer an injury. The homeowner may have violated the law that no one can serve alcohol to those under 11. He can potentially be sued for damages in a personal injury lawsuit.
Potential Damages In A Michigan Dram Shop Law Case
A Dram Shop or social host liability case is a personal injury claim. If your claim succeeds, you may be eligible for damages for your losses. For example, if a drunk driver hits you who was served illegally by a social host, you may obtain money for:
- Medical expenses, including ER, hospital, surgery, rehabilitation, and doctor bills
- The value of your damaged property, such as a totaled car
- Lost earnings and benefits, plus potential loss of earning ability for a disabling injury
- Various out-of-pocket expenses, such as copays and prescription drug costs
- Pain and suffering and mental suffering
What Is A Dram Shop Claim Worth?
Like any personal injury claim, a Dram Shop claim can be worth almost any amount. Every case and injury is unique, so there isn’t an ‘average’ settlement amount to expect. However, an experienced personal injury attorney knows that several factors usually influence the case value:
- How severe are your injuries? Many drunk driving crashes have devastating injuries. Drunk drivers are often speeding and reckless, so the crash can be horrific. If you have severe injuries, such as head or spinal injuries, your case will be worth more. Severe injuries last longer may be permanent, and are more costly.
- How much are your medical bills? A severe injury, such as paralysis, can have millions in medical treatments over many years. Thus, the case value will be higher than if you have a broken wrist that heals fully after six weeks.
- Your age and any preexisting conditions? You may receive more money if you are younger and don’t have any preexisting conditions. Older injury victims with previous injuries may receive less because of a shorter potential lifespan and work career.
- How much insurance is available? If you sue a liquor store, it will probably have commercial insurance with a higher policy limit than a drunk driver’s personal auto insurance policy. Many drunk driving claims settle for insurance policy limits, whatever those are.
- How clear is liability? If it’s obvious that the drunk driver caused the crash and was over served by a bar, the case can be worth more. The case can have a lower value if it’s difficult to sort out liability.
- Degree of pain and suffering: A severe drunk driving injury can result in serious pain and suffering. Your doctor’s testimony and medical opinion will carry significant weight regarding the compensation you receive for the pain and suffering.
How To Collect Compensation In A Michigan Dram Shop Liability Lawsuit
You and a Michigan personal injury attorney can fight for financial justice in your Dram Shop claim in several ways. Usually, the auto accident victim will file a personal injury claim against the Dram Shop’s insurance company. Retail establishments have generally adequate insurance to protect them against liability claims.
If the establishment doesn’t have enough insurance, you may need to consider other legal avenues. One option is to name the retail store or social host in a personal injury claim against the intoxicated driver. When several parties are responsible for your injuries, they may all have to pay for your loss and ensure you have the money when you need it.
Drunk driving and Dram Shop claims don’t usually go to court. You should have an excellent trial attorney handle your case if it does. There’s a good chance that you can win in court, and the jury will award you significant damages. However, a trial is always a risk, and the outcome is uncertain. So, it’s wise to consider any settlement offer by the insurance company before filing a personal injury lawsuit. Court cases take time to schedule and resolve, and there is always a chance that the jury rules against you.
How Can A Personal Injury Attorney Help Your Dram Shop Case?
Suffering an injury by a drunk driver is devastating. It’s vital to obtain a personal injury attorney quickly to maximize your chances of the best financial recovery. A personal injury attorney will have the skills, experience, and legal and financial resources to safeguard your rights and obtain the most compensation. Your attorney will handle every part of your claim confidently and carefully, including:
- Document and investigate the drunk driving accident to show the liable party caused the crash.
- Interview crash witnesses or the person being served alcohol illegally. Your attorney may visit the retail shop or home where the alleged drunk driver was given alcohol.
- Look for surveillance footage of the accident and also of the alleged drunk driver being served or sold alcohol.
- Determining if other parties besides the alleged drunk driver can be held responsible. They will research if the defendant obtained their alcohol from a Dram Shop or social host.
- Collect documentation about your injuries and prognosis so they can accurately estimate your medical needs and costs.
- Ensure you receive fair treatment from any liable insurance company and a fair settlement.
- Failing a successful negotiation, filing a personal injury lawsuit, and suing the liable party or parties.
Your personal injury attorney will also advise you every step during the process and keep you updated about legal options. You’ll know if you have received a fair settlement offer or if negotiations are still ongoing. Your personal injury lawyer also will tell you if a final offer has been made and whether you should accept or sue. However, the final decision about your case always rests with you.
How To Get More Money In A Dram Shop Liability Claim
There are several ways to receive more compensation in your Michigan Dram Shop claim potentially:
Collect Accident Evidence Immediately
Your attorney is highly skilled in accident evidence collection, but you’re at the scene when the crash occurred. If possible, take out your cell phone and take photos and videos of the crash scene, vehicle positions, injuries, and anything else that stands out. Does the other driver look and sound intoxicated? Take a video of them. Give all of this information to your attorney. This visual evidence can be critical to your Dram Shop claim.
Get Medical Care Immediately
You should get immediate medical attention for your injuries. If you don’t, the insurance company for the liable party or parties will claim that you weren’t seriously hurt. You should proceed to the ER directly from the crash scene to be looked over. The treating physician will note if you have crash injuries.
Find Out How The Driver Was Intoxicated
A key to your potential Dram Shop case is if the defendant was clearly intoxicated when at a retail store and was continually served. Or the driver was underage and was served. The police may find out that the driver was at a local bar or restaurant, where he was served alcohol. Give this critical information to your personal injury lawyer.
Remember To Act Within The Michigan Statute Of Limitations
You only have two years from the date of the injury to file a Michigan Dram Shop law. However, before you file, you must notify in writing the party or parties you plan to sue within 120 days after you hire an attorney to pursue the Dram Shop claim. Provide sufficient notice to avoid the case being dismissed.
A social host liability case is a personal injury claim, and under state law, you usually have to file the claim within three years of the date of injury.
Speak To A Personal Injury Attorney Now
Michigan Dram Shop and social host liability claims can be complex and challenging to prove. Having a skilled auto accident attorney in your corner will give you the best chance of a favorable outcome. Speak to a Michigan personal injury lawyer today about your possible Dram Shop case. Your legal consultation is free, and you pay no upfront legal fees.
Thomas L. Stroble
FOUNDER
Mr. Stroble is a highly accomplished graduate of Michigan State University, with degrees in both science and law. He specializes in commercial lawsuits and personal injury cases. Licensed to practice law in Michigan and even the U.S. Supreme Court, he’s a well-qualified legal expert. Besides his career in law, he loves outdoor activities and volunteers as a part-time police officer in Birmingham.
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