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North Carolina Dram Shop Laws

Published February 26, 2025 by The Law Offices of John Drew Warlick, P.A.
North Carolina Dram Shop Laws

Dram shop laws apply to bars, restaurants, and other establishments. The laws hold them accountable for overserving alcohol to patrons who later cause harm to others. They aim to reduce drunk driving accidents and protect the public from preventable injuries caused by intoxicated individuals.

In North Carolina, dram shop laws play a critical role in assigning liability when alcohol service leads to devastating consequences. If you suffered injuries in an accident caused by a drunk driver who was overserved, you might be entitled to compensation. An experienced and knowledgeable drunk driving accident lawyer can help you understand your legal rights and options, including establishing dram shop liability, and help you pursue the justice you deserve.

What Is a Dram Shop?

The term “dram shop” refers to establishments that sell alcoholic beverages, such as bars, restaurants, and liquor stores. The name originates from when alcohol was measured and sold by the “dram,” or a small liquid unit.

Dram shop laws hold these establishments legally responsible if they serve alcohol to visibly intoxicated individuals or minors who then get into accidents or otherwise cause harm to others. The service of the alcohol is considered to be a proximate cause of the crash. By holding these establishments liable and allowing punitive damages in some cases, the dram shop law seeks to encourage responsible alcohol service and reduce the risk of drunk driving accidents and other alcohol-related harm. By regulating alcohol service and holding the conduct of vendors and social hosts to legal standards, these dram shop laws aim to protect public safety and prevent unnecessary injuries.

What Are the Dram Shop Laws in North Carolina?

North Carolina’s dram shop laws, including N.C. Gen. Stat. §§ 18B-121 and 18B-302, impose liability on alcohol-serving establishments when they serve alcohol to individuals who are visibly intoxicated or underage, and those individuals subsequently cause harm, such as by causing a drunk driving accident. State law specifically prohibits the sale of alcohol to anyone who is already visibly impaired by alcohol because the sale increases the risk of accidents and injuries.

Additionally, North Carolina law requires businesses to ensure they do not serve alcohol to anyone under the legal drinking age of 21. Establishments that violate these laws could face severe penalties, including fines and potential civil liability for harm intoxicated patrons cause to others.

Suppose an individual is overserved and causes an accident as a drunk driver. In that case, these dram shop laws allow the victim to pursue compensation from the driver and the establishment that served the alcohol.

What Is a Social Host, and Can They Be Held Liable for a Drunk Driving Accident?

While dram shop laws primarily focus on businesses, social hosts can also be liable under certain circumstances in North Carolina. A social host serves alcohol at a private event or gathering, such as a party or family get-together. If a social host provides alcohol to a visibly intoxicated guest or a minor and the guest later causes harm, the host could be liable.

For example, if a host knowingly serves alcohol at a private party to a visibly intoxicated guest who then causes a car accident on their way home, the host could be found liable. Similarly, if a host provides alcohol to a minor and that minor causes an accident after drinking, the host may face penalties.

Social host liability varies from state to state. In North Carolina, hosts must be cautious about the level of intoxication of their guests and the legal drinking age to avoid potential legal consequences should someone they provide alcohol to wind up causing a crash while intoxicated.

What Are the Penalties for Violating North Carolina’s Dram Shop Laws?

Violations of North Carolina’s dram shop laws can lead to civil liability and criminal penalties. Businesses that serve alcohol to visibly intoxicated people or minors may face civil liability for any harm caused by that individual. For example, if a drunk driver injures someone after being overserved, the establishment that served them could be held financially responsible for the victim’s medical bills, lost wages, and other losses.

Commercial establishments like ABC stores can also be held responsible and face criminal penalties for violating alcohol-serving laws. In North Carolina, selling or serving alcohol to a minor is a criminal offense. Penalties can include fines or suspension of the establishment’s alcohol license. Serving a visibly intoxicated individual may also lead to fines or administrative penalties.

All social hosts have a responsibility to monitor alcohol consumption to avoid serving underage or visibly intoxicated people who could go on to get a DUI and cause a collision.

What Is Needed to Prove Liability in a North Carolina Dram Shop Claim?

If you suffered injuries because someone was overserved alcohol and caused a crash that harmed you, your North Carolina car accident lawyer must establish the following facts to prove liability:

  • Knowledge of intoxication — You must show the establishment or social host served alcohol to an individual who was visibly intoxicated or underage. Your lawyer may use witness testimony, surveillance footage, or expert testimony as evidence of the person’s level of intoxication.
  • Direct relationship between the intoxicated person and the accident — You must demonstrate that the intoxicated individual caused the accident or injury. This proof may include evidence linking the driver’s impairment to the crash, such as police reports, alcohol breathalyzer results, or medical reports confirming intoxication.
  • The intoxicated person was also the overserved person — You must prove the intoxicated person was the same individual who was overserved. For your claim to succeed, you must establish a clear link between the alcohol service and the accident.
  • Actual losses — You must also provide documentation showing your actual losses due to the intoxicated person’s conduct, such as medical expenses, lost income, property damage, and pain and suffering.

Contact a North Carolina Drunk Driving Accident Lawyer

When a dram shop or social host overserves a person, and they get behind the wheel and cause an accident that injures you or a loved one, you deserve to hold all liable parties accountable. The Law Offices of John Drew Warlick, P.A., can help. We have provided full-service representation to North Carolina residents for three generations and are committed to fighting for the justice you deserve. Contact us today for a free consultation with an experienced attorney about your potential dram shop liability case and learn about your legal options to seek damages.

Visit Our North Carolina Drunk Driving Accident Law Offices

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