Tennessee Dram Shop Law - When can a bar, retailer or restaurant be found liable for accident caused by intoxicated individual under Tennessee Law?

In 1986, the Tennessee legislature created T.C.A. § 57-10-101 and T.C.A. § 57-10-102 in order to provide a statutory scheme for Tennessee Dram Shop liability.  These two statutes define when a bar, retailer or restaurant can be found responsible for selling alcohol to an individual that later causes injuries or death to another person while intoxicated from that alcohol.  You may wonder why it is called “dram shop” law.  “Dram shop laws are named after establishments in 18th Century England that sold gin by the spoonful (called a "dram").”  Quote from Findlaw article found here.

T.C.A. § 57-10-101 provides as follows:

The general assembly hereby finds and declares that the consumption of any alcoholic beverage or beer rather than the furnishing of any alcoholic beverage or beer is the proximate cause of injuries inflicted upon another by an intoxicated person.

As a result, in Tennessee the general rule is that, bars, retailers and restaurants can not be found responsible to third-parties for damages caused by an intoxicated individual for alcohol served or sold to that person.  However, T.C.A. § 57-10-102 provides some exceptions to this rule that need to be carefully considered. 

T.C.A. § 57-10-102 provides as follows:

Notwithstanding the provisions of § 57-10-101, no judge or jury may pronounce a judgment awarding damages to or on behalf of any party who has suffered personal injury or death against any person who has sold any alcoholic beverage or beer, unless such jury of twelve (12) persons has first ascertained beyond a reasonable doubt that the sale by such person of the alcoholic beverage or beer was the proximate cause of the personal injury or death sustained and that such person:

(1) Sold the alcoholic beverage or beer to a person known to be under the age of twenty-one (21) years and such person caused the personal injury or death as the direct result of the consumption of the alcoholic beverage or beer so sold; or

(2) Sold the alcoholic beverage or beer to a visibly intoxicated person and such person caused the personal injury or death as the direct result of the consumption of the alcoholic beverage or beer so sold.

There are several important things to note about this statute.  The first is that the plaintiff has the burden to establish the exceptions found in T.C.A. § 57-10-102 "beyond a reasonable doubt."  This is a very high burden of proof for the plaintiff.  Additionally, this statute requires that a jury of twelve persons must make the determination under the statute.  There are some Tennessee local rules of court that provide that a jury of six individuals is standard unless a jury of twelve persons is requested.  See Norris v. Nationwide, 728 S.W.2d 335 (Tenn. Ct. App. 1987) and the Local Rules of Court for Davidson County, § 31.02.  However, under T.C.A. § 57-10-102 a jury of twelve people must make the findings under this statute.

Under these statutes there are two basic scenarios that a bar, retailer or restaurant can be found responsible for selling alcoholic beverages that lead to the injury or death of a third party.  Before either of these scenarios can be utilized, the statute requires the plaintiff to establish beyond a reasonable doubt that the sale of the alcohol or beer was the proximate cause of the personal injury or death. 

Next the plaintiff must prove one of two things.  First, that the alcoholic beverage or beer was sold to an individual that was "known to be" under the age of twenty-one and that person caused personal injury or death as the direct result of the "consumption of the alcoholic beverage or beer so sold."  The second option is the plaintiff can prove the sale of alcohol was to a "visibly intoxicated person" and that person caused the personal injury or death "as a direct result of the consumption of the alcoholic beverage or beer so sold."