| Read Time: 4 minutes | Car Accidents

Drunk driving crashes can be devastating. Not only do you have to deal with the pain and bills of a typical car crash, but you bear the emotional weight of being hurt through the sheer carelessness of other people.

The drunk person decided to drive, but other people may have decided to keep giving alcohol to the driver. By applying the New Jersey dram shop law, we can also help hold those people accountable. At Glugeth & Pierguidi, P.C., we pursue accountability wherever the law allows. For two decades, we have helped people in your position get the compensation they deserve from everyone they deserve it from.

What Is a Dram Shop Law?

A dram shop law allows victims of alcohol-related accidents to hold establishments accountable when they serve alcohol irresponsibly. The term comes from the 19th century, when taverns sold liquor by the “dram,” a small unit of measurement. Today, the principle remains the same: a business that profits from serving alcohol must do so responsibly and with regard for public safety.

Under these laws, if a bar, restaurant, or similar venue serves alcohol to someone who is clearly intoxicated or underage, and that person causes harm after leaving, the establishment may be legally responsible. For you, this means there may be a path to pursue compensation not only from the drunk driver but also from the establishment that contributed to the danger.

New Jersey Dram Shop Laws

Who Can Be Sued in a Dram Shop Case?

Liability under a dram shop rule is not limited to traditional bars. Several types of businesses can be sued if they overserve someone who later causes an accident. Potential defendants include:

  • Bars and taverns,
  • Restaurants,
  • Nightclubs and lounges,
  • Caterers and banquet halls, and
  • Any licensed establishment that sells alcohol for consumption on the premises.

The law recognizes that each of these businesses has the power to prevent foreseeable harm by refusing service to visibly intoxicated or underage patrons. If they fail in that duty, and you are injured as a result, we can pursue them for the damages you suffer.

Social Hosts

Social hosts are not technically covered under the dram shop law, but they are still relevant in drunk driving injury cases. In New Jersey, social hosts can also be liable if they serve alcohol to visibly intoxicated guests who later drive and cause injuries. This applies primarily to private gatherings where the host provides alcohol.

New Jersey Dram Shop Liability Laws

The New Jersey dram shop liability laws are found in the “Licensed Alcoholic Beverage Server Fair Liability Act.” It outlines the circumstances under which an establishment may be held responsible. To succeed in a claim, you must show that the business served alcohol either to someone visibly intoxicated or to a person under the legal drinking age.

Proving visible intoxication can involve witness testimony, surveillance video, receipts, or expert evaluation of blood alcohol levels. Establishments often argue that the person did not appear impaired, but with careful investigation, we uncover the facts that demonstrate negligence.

Percentage Share of Damages

Under this New Jersey law, the party serving the alcohol is liable for damages in proportion to their percentage of negligence. In other words, your total compensation remains the same because it is based on your medical bills, lost wages, and more. The question is what percentage of that compensation will be paid by the driver and what percentage will be paid by the alcohol server.

Even if the total compensation due to you does not change, including the alcohol server in a lawsuit can be important. For example, if the driver in your case cannot realistically pay the full damages, the establishment may be required to pay its share. In many cases, the driver’s insurance may also try to involve the establishment, hoping to decrease their share of the compensation due.

Applying the New Jersey Dram Shop Statute to Your Personal Injury Claim

If the New Jersey dram shop statute applies to your case, we will integrate that into our overall investigation. We:

  • Gather evidence from the accident scene, 
  • Interview witnesses who may have observed the drunk driver at the bar, and 
  • Secure any available video or transaction records. 

These pieces of evidence establish whether the establishment knew or should have known the patron was intoxicated or underage.

Filing a Lawsuit

Once the evidence is secured, we file a lawsuit naming all responsible parties. In many cases, that means both the drunk driver and the establishment that overserved them. 

Throughout the case, we handle negotiations with the parties’ insurers and prepare for trial if needed. Because our attorneys regularly take cases to court, defendants know we will not accept low settlements that fail to cover your medical care, lost income, and long-term needs. Our record of hundreds of millions recovered reflects that determination.

Frequently Asked Questions About the New Jersey Dram Shop Rule

How Do I Know if the Establishment Overserved the Driver?


When applying the New Jersey dram shop rule, we look for evidence such as receipts showing repeated drink purchases in a short time, testimony from other patrons, or expert analysis of blood alcohol levels compared to the time of service.

What Damages Can I Recover?


You may seek compensation for medical expenses, rehabilitation costs, lost wages, pain and suffering, and future care needs. In fatal accidents, families can pursue wrongful death damages.

Do I Need to Prove That the Establishment Knew the Patron Was Drunk Under the New Jersey Dram Shop Law?


The standard is whether the person was “visibly intoxicated” when served. Slurred speech, unsteady movements, aggressive behavior, or other outward signs can show intoxication.

Call for a Free Consultation

At Glugeth & Pierguidi, P.C., we know the aftermath of a drunk driving accident does not follow business hours. That is why we offer free consultations around the clock. When you call us, you speak with a team that takes your case seriously.

We are committed to holding not only drunk drivers accountable but also the establishments that enable dangerous behavior by serving irresponsibly. By pursuing all avenues of recovery, including the New Jersey dram shop law, we aim to secure the resources you require to heal, provide for your family, and move forward.

If you or a loved one were injured in a crash involving a drunk driver, contact us today. Let our two decades of experience get to work for you.

Author Photo

David Pierguidi and Jared Glugeth understand how hard it may be for you and your family following an accident resulting from someone’s negligent actions. Get the medical treatment you need right away and then call our law firm at any time of day for answers to your questions.

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