Business & Insurance Litigation Newsletter for Indiana

Actual Knowledge of Intoxication Required for Liability Under the Dram Shop Act

Indiana's Dram Shop Act requires that a server have actual knowledge of a patron's intoxication at the time an alcoholic beverage was served before the server will be liable for damage or injury caused by an intoxicated patron. I.C. §7.1-5-10-15.5(b). Courts require the plaintiff to introduce evidence sufficient to show that the server had actual knowledge of the patron's intoxication, including the quantity and type of beverages consumed, slurred speech, unsteady balance and the patron's behavior and condition when being served.