Serving alcohol can be profitable for bars, restaurants, and event hosts, but it also carries significant responsibility. Under Tennessee’s liquor liability laws, businesses and individuals who serve alcohol may be held legally accountable if intoxicated patrons cause harm.
At Champagne Law Firm, we help business owners, servers, and individuals understand their obligations under Tennessee law and defend those facing liquor liability claims.
What Is Liquor Liability?
Liquor liability refers to the legal responsibility that arises when a business or individual serves alcohol to someone who later causes injury, property damage, or even death due to intoxication. Tennessee law recognizes these types of claims under what’s commonly known as the Dram Shop Act.
The law is designed to balance public safety with fairness: while individuals are ultimately responsible for their actions, establishments that over-serve or serve minors can also be held accountable.
Tennessee’s Dram Shop Law
Tennessee Code Annotated § 57-10-101 governs liquor liability. Unlike some states with broad dram shop laws, Tennessee’s statute is narrowly tailored. Liability is limited to two situations:
- Serving a Minor – Providing alcohol to someone under 21 years of age.
- Serving a Visibly Intoxicated Person – Selling or furnishing alcohol to someone who is clearly intoxicated and poses a danger to themselves or others.
If either condition is met and the intoxicated person later causes injury or damage, the business or server may be subject to a civil lawsuit.
Who Is at Risk?
Several groups can face liquor liability exposure in Tennessee:
- Bars and Restaurants – Establishments licensed to sell alcohol must carefully monitor service.
- Event Hosts – Individuals hosting private events may be sued under social host liability theories, especially if minors are served.
- Servers and Bartenders – Employees who over-serve patrons may be personally implicated.
- Business Owners – Even if staff are at fault, owners may be held responsible for negligent training or supervision.
Common Scenarios
Liquor liability claims often arise from:
- Drunk Driving Accidents – A patron leaves a bar intoxicated, drives, and injures someone.
- Fights or Assaults – Intoxicated individuals engage in violent altercations.
- Falls or Injuries – An impaired patron injures themselves or others on the premises.
Preventing Liquor Liability
The best defense against a lawsuit is prevention. Steps that reduce liability include:
- Training Staff – Ensuring bartenders and servers are trained to recognize intoxication.
- Checking IDs – Preventing underage sales.
- Cutting Off Service – Refusing to serve visibly intoxicated patrons.
- Documenting Incidents – Keeping detailed records if service is refused or problems arise.
Many Tennessee establishments participate in Responsible Beverage Service (RBS) training to protect both customers and their business.
How Champagne Law Firm Can Help
If you are facing a liquor liability claim, the consequences can be severe, including financial damages, loss of a liquor license, or harm to your business reputation. At Champagne Law Firm, we provide:
- Defense in Liquor Liability Lawsuits – Protecting your business and reputation.
- Risk Management Guidance – Helping business owners implement best practices to avoid liability.
- Compliance Support – Reviewing policies and training programs to ensure they meet Tennessee standards.
Attorney Kelly Champagne-Deutekom’s unique background in finance and law provides a dual advantage—she not only defends against claims but also helps clients manage risk in a way that incorporates employee training and compliance.
Final Thoughts
Liquor liability is a serious issue for Tennessee businesses and individuals who serve alcohol. Understanding the law, training employees, and taking proactive measures can prevent costly lawsuits. If you are facing a liquor liability claim or want to better protect your business, experienced legal counsel is essential. Contact Champagne Law Firm today for a confidential consultation. With offices in Nashville, Sevierville, and Rogersville, we proudly serve businesses and individuals throughout Middle and East Tennessee. Call 865-228-8080 or contact us online to learn how we can help.
