South Carolina Dram Shop Laws: Are Bars Liable for Drunk Drivers?

Learn when bars and restaurants can be held liable for drunk driving accidents caused by their customers in South Carolina

The devastation caused by drunk drivers is undeniable. In South Carolina, these accidents leave a trail of injuries, lost lives, and shattered families year after year, which has led many South Carolinans to question the responsibility of the establishments that serve alcohol to intoxicated patrons. 

But can a bar be held liable if a drunk driver leaving their establishment causes an accident?

South Carolina’s laws regarding drunk driving accidents and potential liability for bars that serve alcohol can be complex. This article will explore the current legal landscape, including existing laws, often referred to as “dram shop laws,” and proposed bills. We’ll also discuss your right to compensation and how it’s determined if you’ve been injured or lost a loved one due to a drunk driver in South Carolina.

What are dram shop laws?

Dram shop laws are regulations that hold alcohol-serving establishments, such as bars, taverns, and restaurants, legally accountable for harm that intoxicated patrons cause after being served alcohol. These laws are designed to encourage responsible alcohol service and provide recourse for victims of accidents involving intoxicated individuals.

Under dram shop laws, if a person is injured or killed by an intoxicated individual, the establishment that served alcohol to the visibly intoxicated person can be held liable for damages. This can include medical expenses, lost wages, pain and suffering, and other related costs.

Dram shop laws vary by state, with some states imposing strict liability on establishments that serve alcohol to visibly intoxicated patrons or minors, while others may require proof of negligence. These laws aim to reduce alcohol-related harm and encourage businesses to implement responsible serving practices.

Does South Carolina have dram shop laws?

So, are bars responsible for drunk drivers in South Carolina?

In a sense, yes. Under South Carolina law, if a business knowingly sells, furnishes, or serves alcohol to a visibly intoxicated person or a minor, and that person causes a car accident, the business can be held liable for the resulting damages. This legal framework aims to promote responsible alcohol service and provide recourse for victims of alcohol-related incidents.

Under South Carolina law Section 61-4-580, businesses that hold permits to sell beer or wine must adhere to strict regulations to avoid liability in drunk driving accidents. These regulations include:

• Underage sales. It is illegal for businesses to sell beer or wine to individuals under the age of 21. This measure is in place to prevent underage drinking and its associated risks.
• Sales to intoxicated persons. Businesses are also prohibited from selling beer or wine to individuals who are visibly intoxicated. This is crucial for preventing further intoxication and potential drunk driving incidents.

Failure to comply with these regulations can lead to severe consequences, including the revocation or suspension of the business’s permit to sell beer or wine and liability through a personal injury claim.

However, proving liability in these cases can be challenging, especially in cases involving people of legal drinking age. 

Here’s why: While it’s fairly straightforward to establish if someone is under 21 through identification, demonstrating that a person was visibly intoxicated at the time of the alcohol sale requires more subjective evidence. Witness testimony, security footage, and other documentation may be necessary to prove that the business knowingly served alcohol to an intoxicated person.

What is the dram shop statute in South Carolina?

Effective since July 1, 2017, Section 61-2-145 of South Carolina law requires that any business licensed to sell alcoholic beverages for on-premises consumption and operating past 5:00 p.m. must maintain a liquor liability insurance policy or a general liability insurance policy with a liquor liability endorsement.

The coverage must be at least $1 million during the period of the biennial (two-year) permit or license. Failing to maintain the required insurance coverage can lead to the suspension or revocation of the business’s permit or license to sell alcoholic beverages.

This law was intended to ensure that businesses serving alcohol on their premises are adequately insured to cover potential liabilities, protecting both the businesses and the public, but recently, there’s been some pushback that has led to new legislation being proposed.

SC lawmakers propose bill to address soaring liquor liability insurance costs

As reported by WLTX News19, South Carolina lawmakers are exploring solutions to alleviate the financial burden on bar and restaurant owners caused by soaring insurance costs. 

Business owners like Josh Baumgardner of Transmission Arcade and Bar testified about escalating insurance rates, which have surged from $6,000 to $65,000 after the 2017 law mandated businesses serving alcohol past 5 p.m. to carry at least $1 million in liquor liability insurance.

The proposed bill aims to mitigate the financial strain on bars and restaurants by creating a special reserve fund to lower insurance premiums for specific bars and restaurants serving alcohol past 5 p.m. The legislation offers premium reductions for businesses that:

• Limit alcohol service hours,
• Participate in alcohol server training, or
• Generate less than 40% of revenue from alcohol.

Additionally, nonprofits or special events requesting alcohol permits would only need a $500,000 aggregate limit on liquor liability insurance.

Opponents argue that loosening responsibilities for establishments serving alcohol would endanger public safety. As of May 2024, the bill is still being considered in the South Carolina state legislature.

How is fault determined in South Carolina drunk driving accidents?

In South Carolina, fault in car accidents, including drunk driving accidents, is determined by the legal principle of modified comparative negligence. This system allocates fault among all parties involved in an accident and reduces the compensation a plaintiff (injured person) can receive based on their degree of fault.

Additionally, a plaintiff can recover damages only if they’re found to be less than 51% at fault for the accident. As an example, if a plaintiff is awarded $100,000 in damages but is found to be 20% at fault, they would ultimately receive $80,000 in compensation.

So, how does comparative negligence impact drunk driving claims involving bars or restaurants?

In the context of drunk driving claims involving bars or restaurants, modified comparative negligence can play a significant role. Here’s how it might work:

• If a bar or restaurant is found to have served alcohol to a visibly intoxicated person or a minor who then causes a drunk driving accident, the establishment can be held partially liable for the resulting damages. However, the plaintiff must prove that the establishment’s actions contributed to the accident.
• If the drunk driver is found to be the primary party at fault, but the bar or restaurant is also deemed partially responsible for overserving the driver, both the driver and the establishment could be required to pay damages based on their percentage of fault.

Because these cases are often complex, it’s highly recommended that you consult with a local Columbia car accident attorney with experience in drunk driving cases to help you prove liability and secure the compensation you deserve.

Get help from an experienced South Carolina drunk driving attorney

If you or a loved one has been injured or suffered a wrongful death in a drunk driving accident,  understanding your legal options is crucial. The complexities of determining fault, especially when it involves bars or restaurants, can be overwhelming. 

At Chappell, Chappell and Newman, our experienced Columbia personal injury attorneys are dedicated to helping victims of drunk driving accidents navigate these challenges. We’ll work tirelessly to investigate your case, gather evidence, and build a strong claim to ensure you receive the compensation you deserve.

Contact Chappell, Chappell and Newman today to schedule a free consultation and take the first step toward justice and recovery.

References

2023-2024 Bill 1175: Dram Shop Act – South Carolina Legislature Online. (n.d.). www.scstatehouse.gov. Retrieved July 10, 2024, from https://www.scstatehouse.gov/sess125_2023-2024/bills/1175.htm 

Code of Laws – Title 61 – Chapter 2 – General Provisions. (n.d.). www.scstatehouse.gov. Retrieved July 10, 2024, from https://www.scstatehouse.gov/code/t61c002.php 

Code of Laws – Title 61 – Chapter 4 – Beer, Ale, Porter, And Wine. (n.d.). www.scstatehouse.gov. https://www.scstatehouse.gov/code/t61c004.php