Montana’s Dram Shop Laws
Montana has the unfortunate designation as the worst state in the U.S. for drunk driving, with more than two-fifths of traffic fatalities caused by drunk drivers. The state’s record for underage intoxicated drivers is also the highest in the nation. Montana has one of the country’s highest numbers of drunk driving arrests, with 450.50 DUI arrests for every 100,000 of the state’s licensed drivers.
When a drunk driver in Montana causes a car accident with injuries or fatalities, they face not only criminal charges, but also liability for property damage, injuries, and fatalities they cause to others.
However, under specific circumstances, the drunk driver may not be the only liable party after a DUI accident. In some cases, Montana’s Dram Shop Law holds drinking establishments or even private property owners liable for damages.
What Is a Dram Shop Law?
While a handful of U.S. states have no dram shop laws, and the details of the laws vary from state to state, a dram shop law holds drinking establishments and purveyors of alcoholic beverages legally liable for medical or funeral expenses, lost wages, and other damages if they overserve customers, serve a visibly intoxicated customer, or serve alcohol to a minor who then goes on to cause a car accident or commits any act resulting in injury to others.
Dram shop laws take their name from the unit of measurement used by bartenders to mix drinks, more commonly called a “shot.” Dram shops refer to any establishment that serves alcohol on their property, but Montana’s dram shop law also applies to homeowners who serve alcohol at social events in their homes.
What are Montana’s Dram Shop Laws?
Club owners and other businesses that sell alcohol are not legally liable for every accident, injury, or act of violence committed by those they’ve served. Montana’s dram shop law sets specific criteria under which the owner of a drinking establishment may be held accountable. Under Montana’s civil liability law 27-1-710, the law states the following:
“The purpose of this section is to set statutory criteria governing the civil liability of a person or entity that furnishes an alcoholic beverage for injury or damage arising from an event involving the person who consumed the beverage… Furnishing a person with an alcoholic beverage is not a cause of, or grounds for finding the furnishing person or entity liable for, injury or damage wholly or partly arising from an event involving the person who consumed the beverage unless…”
Then the law goes on to state the situations under which a business owner or homeowner may be held liable for damages, including the following:
- The consumer was under the state’s legal drinking age of 21, and the server knew the customer was underage or failed to make reasonable attempts to determine their age
- The consumer was already noticeably intoxicated, and the server continued to furnish them with alcoholic beverages
- A furnisher of alcohol coerced the consumer into drinking or told them that the beverage served did not contain alcohol (coercive consumption)
In addition, Montana’s dram shop laws add the following conditions:
“A civil action may not be commenced under this section against a person or entity who furnished alcohol to the consumer unless the person bringing the civil action provides notice of an intent to file the action to the person or entity who furnished the alcohol by certified mail within 180 days from the date of sale or service. The civil action must be commenced pursuant to this section within 2 years after the sale or service.”
Understanding Montana’s Dram Shop Liability
The most common example of Montana’s dram shop law usage occurs when a purveyor of alcoholic beverages continues to serve a visibly intoxicated customer who then drives home and causes a collision, injuring a motorist in another vehicle. The business owner may be held liable for the injury victim’s damages.
Common damages include past and medical expenses related to the injury, past and future income loss, and compensation for pain and suffering. In catastrophic injury cases, additional damages such as diminished quality of life, loss of limb, disfigurement, or loss of vision or hearing may apply.
If an accident caused by an overserved, visibly intoxicated customer or underage drinker causes a fatality, the damages could be those that apply to wrongful death cases, such as funeral expenses and the loss of a provider’s income and benefits.
In the above car accident example, the injury victim could seek compensation for their damages from both the at-fault driver’s auto insurance and the drinking establishment through the dram shop law, potentially increasing the compensation they recover.
When are Homeowners Liable for Damages Under the Montana Dram Shop Law?
The Dram Shop Law in Montana isn’t limited to “dram shops” or drinking establishments like bars, pubs, clubs, or restaurants. It also applies to private homeowners who host social events on their property and continue to serve alcohol to a visibly intoxicated guest, serve an underage guest alcohol, or coerce or trick a guest into consuming alcohol and then allow the overserved person to drive away in a car.
If a party guest under one of the above conditions has an accident while driving drunk, the homeowner could be held financially accountable under Montana’s Dram Shop Law. While business owners aren’t typically personally liable for damages, their business is liable and must pay compensation through their commercial liability insurance.
A homeowner is personally liable for damages without the protective barrier of a business entity.
Limits on Compensation in Montana Dram Shop Cases
Unlike most personal injury cases in Montana, the state’s dram shop law caps, or limits, an injury victim’s compensation for non-economic (not expense-related) damages like pain and suffering, PTSD, or diminished quality of life. The state caps non-economic recovery at $250,000.
This prevents business owners and homeowners from suffering excessive or unrealistic judgments against them, which could otherwise discourage small business openings.
Punitive damages, which are sometimes awarded to injury victims to punish a wrongdoer for egregious actions, are also limited to $250,000 in dram shop liability claims.
How Can a Montana Personal Injury Lawyer Help Me?
Proving liability in a dram shop liability case in Montana is challenging and requires an investigation. An attorney reviews security camera footage and takes eyewitness statements to make a compelling dram shop liability claim.
For an optimal chance at the most favorable results in your Montana dram shop liability case, you need the guidance and legal counsel of an experienced attorney. Call the Montana personal injury lawyers at Beck, Amsden, and Stalpes PLLC today so we can begin a strong legal strategy to recover full and fair compensation for your damages.