In many states, there are “dram shop laws.”  The term “dram” refers back to a time when alcohol was sold by the dram, a small serving amount. Dram shop laws now refer to liability for establishments that serve alcohol for damages caused by an intoxicated person who was served by the establishment.

In a state with dram shop laws, a business could be held liable to pay damages when an intoxicated patron causes injury or damage, even when an incident happens after the intoxicated patron leaves the premises where he was served. Dram shop laws vary from state to state.

Louisiana has what is referred to as an “anti-dram shop” shop law. Louisiana Revised Statute 9:2800.1, “Limitation of liability for loss connected with sale, serving, or furnishing of alcoholic beverages” is based upon the Louisiana Legislature’s finding that “the consumption of intoxicating beverages, rather than the sale or serving or furnishing of such beverages, is the proximate cause of any injury, including death and property damage, inflicted by an intoxicated person upon himself or upon another person.” R.S. 9:2800.1 A.  On that basis, the law provides, in relevant part:

B.  Notwithstanding any other law to the contrary, no person holding a permit under either Chapter 1 or Chapter 2 of Title 26 of the Louisiana Revised Statutes of 1950, nor any agent, servant, or employee of such a person, who sells or serves intoxicating beverages of either high or low alcoholic content to a person over the age for the lawful purchase thereof, shall be liable to such person or to any other person or to the estate, successors, or survivors of either for any injury suffered off the premises, including wrongful death and property damage, because of the intoxication of the person to whom the intoxicating beverages were sold or served.

The law provides similarly for social hosts who serve or furnish alcohol:

C.(1)  Notwithstanding any other law to the contrary, no social host who serves or furnishes any intoxicating beverage of either high or low alcoholic content to a person over the age for the lawful purchase thereof shall be liable to such person or to any other person or to the estate, successors, or survivors of either for any injury suffered off the premises, including wrongful death and property damage, because of the intoxication of the person to whom the intoxicating beverages were served or furnished.

(2)  No social host who owns, leases, or otherwise lawfully occupies premises on which, in his absence and without his consent, intoxicating beverages of either high or low alcoholic content are consumed by a person over the age for the lawful purchase thereof shall be liable to such person or to any other person or to the estate, successors, or survivors of either for any injury suffered off the premises, including wrongful death and property damage, because of the intoxication of the person who consumed the intoxicating beverages.

Note that the age of lawful purchase is key to the limitation of liability.  Should a host serve a minor, the limitation of liability would not apply.  Also, the limitation of liability would not apply to any person who causes or contributes to the consumption of alcoholic beverages by force or by falsely representing that a beverage contains no alcohol.  R.S. 9:28000.1E. An example of forced consumption would be fraternity hazing involving drinking.  These are reasonable exceptions to the protection afforded by the statute.

The insurer of the intoxicated person shall be primarily liable with respect to injuries suffered by third persons.  R.S. 9:2800.1 D.

Many realize that the New Orleans area relies upon tourism, restaurants and bars for survival. Not only the French Quarter, but other areas of the City of New Orleans are known for the ability to take liquor into the street in “go cups”. Many comment on the drive-thru daiquiri shops which are allowable under R.S. 32:300 which exempts from “open alcoholic beverage container” any “bottle, can or other receptacle that contains a frozen alcoholic beverage unless the lid is removed, a straw protrudes therefrom, or the contents of the receptacle have been partially removed.”

While Louisiana is not the only state without a dram ship law, it is one of the more obvious ones given the prominence of alcohol in the tourism industry.