Q: Can my bar or restaurant be sued if a customer drinks too much and then hurts someone?
A: Possibly, and the exposure can be significant. New Hampshire’s “dram shop” law, which is a term dating to when taverns sold spirits by the dram (a traditional small pour), imposes civil liability on licensed alcohol vendors whose service leads to injury. RSA Chapter 507-F is the governing statute in New Hampshire, and every business that serves alcohol should understand it.
Who is covered. The statute applies to any person or business licensed (or required to be licensed) to serve alcohol, and to any of their employees or agents. If your bartender or server poured the drinks, your business can be named as a defendant.
The “negligence” standard. A vendor who serves alcohol to a minor or to an already intoxicated person can be held liable for resulting harm if the server knew, or a reasonable server would have known, that the patron was a minor or already drunk. Serving a minor without checking ID is, in and of itself, evidence of negligence under the statute.
The “recklessness” standard. A higher bar applies when the intoxicated patron rather than a third-party victim brings a lawsuit under the statute. In that situation, the patron must show the server intentionally kept pouring drinks knowing, or when a reasonable person should have known, that it created an unreasonable risk of harm. Examples of reckless conduct might include actively encouraging a visibly drunk patron to keep drinking or helping a visibly intoxicated patron into a car they intend to drive.
Your defense. Service is not negligent or reckless if the defendant was adhering to responsible business practices at the time. That means the policies and procedures a reasonably prudent owner/business would have in place – think written service policies, regular staff training, and consistent ID checks. No amount of good policy, however, will protect you if your staff served someone they knew was underage or already visibly intoxicated.
This statute is the exclusive civil remedy for alcohol service claims in New Hampshire. The best protection is knowledge and preparation: train your staff, document your policies, and make sure everyone on the floor knows when to stop serving. An attorney can help you build those practices before a problem (or lawsuit) arises.
Know the Law is a bi-weekly column sponsored by McLane Middleton. Questions and ideas for future columns should be emailed to knowthelaw@mclane.com. Know the Law provides general legal information, not legal advice. We recommend that you consult a lawyer for guidance specific to your particular situation.