Every year, drunk driving crashes leave Indiana families facing devastating injuries, overwhelming medical bills, and heartbreaking losses. While an intoxicated driver is often the most obvious person responsible for a crash, they may not be the only party that can be held accountable. Under Indiana dram shop law IC 7.1-5-10-15.5, bars, restaurants, taverns, liquor stores, and other businesses licensed to sell alcohol may, in certain circumstances, be held liable when they have actual knowledge that the person was visibly intoxicated at the time of furnishing the alcohol or knowingly provide alcohol to a minor who later causes injuries to someone else. If you or a loved one was injured in an alcohol-related crash in Northwest Indiana, a dram shop attorney in Northwest Indiana can help.
Read on for this helpful guide from the Northwest Indiana premises liability lawyers at Lerner and Rowe
What Is Indiana’s Dram Shop Law?
Indiana’s dram shop law is found in Indiana Code 7.1-5-10-15.5. The statute allows an injured third party to pursue a claim against a licensed alcohol provider in limited circumstances.
Generally, a licensed establishment may be liable if it:
- Furnishes alcohol to a person while having actual knowledge that the person is visibly intoxicated; or
- Furnishes alcohol to a minor while having actual knowledge that the individual is under the legal drinking age.
If that individual later causes injuries or damages to another person, the establishment may be subject to civil liability if the statutory requirements are met and the plaintiff proves the remaining elements of the claim.
These cases often require extensive evidence because proving that someone appeared intoxicated after a crash is not enough. The key issue is whether the establishment had actual knowledge of the person’s visible intoxication at the time alcohol continued to be served.
Dram Shop Attorney in Northwest Indiana: Why These Cases Matter
Northwest Indiana has numerous restaurants, taverns, breweries, casinos, and entertainment venues like Tavern on the Lake and Hard Rock Casino Northern Indiana that serve alcohol every day.
Popular entertainment corridors around Hammond, Gary, and nearby communities—including areas along Calumet Avenue and portions of 5th Avenue—can experience increased traffic during evenings, weekends, sporting events, concerts, and holidays.
Most establishments serve alcohol responsibly.
However, when a business ignores obvious signs that a customer is visibly intoxicated or knowingly serves alcohol to a minor, the consequences can extend far beyond the establishment itself.
An impaired driver who leaves the property may cause catastrophic injuries involving:
- Head-on collisions
- Rear-end crashes
- Pedestrian accidents
- Motorcycle collisions
- Wrong-way crashes
- Fatal accidents
Indiana’s dram shop law exists to encourage responsible alcohol service while providing injured victims with another potential avenue for financial recovery when legal requirements are met.
What Does “Visibly Intoxicated” Mean?
One of the most misunderstood parts of Indiana dram shop law, IC 7.1-5-10-15.5, is the phrase “visibly intoxicated.”
Simply consuming alcohol does not automatically make someone visibly intoxicated.
Likewise, having a high blood alcohol concentration after a crash does not necessarily prove what the person looked or acted like while inside the establishment.
Instead, evidence may need to show that the customer’s intoxication was outwardly apparent before additional alcohol was served.
Potential indicators may include:
- Slurred speech
- Staggering or difficulty walking
- Loss of coordination
- Bloodshot or glassy eyes
- Loud or aggressive behavior
- Falling asleep
- Vomiting
- Difficulty paying a bill
- Obvious impairment noticed by staff or other patrons
No single factor automatically establishes bar liability for a drunk driver in Indiana. Every case depends on its specific facts and the available evidence.
Dram Shop Attorney in Northwest Indiana: Evidence That Can Help
Because bars and restaurants often erase surveillance footage or dispose of routine business records after relatively short periods of time, gathering evidence quickly is critical.
Important evidence may include:
Surveillance Video
Security cameras can sometimes show:
- The customer’s appearance
- Their balance and coordination
- Interactions with bartenders
- Whether additional drinks were served
- The customer’s condition before leaving
Video can become one of the strongest forms of evidence in a liquor liability claim in Lake County, Indiana.
Credit Card Receipts and Drink Tabs
Receipts may help establish:
- How many drinks were purchased
- When drinks were ordered
- How long the customer remained at the establishment
- Whether multiple employees served the individual
These records can sometimes be compared with witness testimony and surveillance footage.
Employee Testimony
Bartenders, servers, managers, hosts, and security personnel may have important information regarding:
- The customer’s behavior
- Whether anyone expressed concern
- Whether service was refused
- Whether staff discussed intoxication
- How many drinks were served
Witness Statements
Other customers may have observed behavior supporting visible intoxication before the individual left the establishment.
Independent witnesses often provide valuable testimony because they generally have no personal stake in the outcome of the case.
Dram Shop Attorney in Northwest Indiana: Why Preservation Letters Matter
One of the most important early steps in many dram shop investigations is sending a preservation, or spoliation, letter to the establishment.
Many businesses routinely overwrite surveillance footage, discard receipts after certain retention periods, or lose electronic records during normal business operations. A preservation letter formally notifies the establishment that litigation is anticipated and puts the establishment on notice that litigation is anticipated and requests preservation of potentially relevant evidence.
This may include:
- Security camera footage
- Point-of-sale records
- Credit card receipts
- Employee schedules
- Incident reports
- Surveillance logs
- Training records
- Internal communications
- Reservation information
Waiting too long can result in valuable evidence disappearing before it is ever reviewed.
For that reason, contacting an attorney soon after an over-served drunk driving accident in Indiana can make a significant difference in preserving important evidence.
Can You Sue Both the Intoxicated Driver and the Bar?
Yes, you can. One of the most important aspects of many dram shop cases is that these types of injury claims may proceed against multiple defendants when supported by the evidence.
These may include:
- The intoxicated driver
- The licensed establishment
- Other potentially negligent parties, depending on the circumstances
These are often referred to as parallel claims.
Pursuing both claims may be important because:
- The driver’s insurance may be insufficient to fully compensate victims.
- The establishment may carry commercial liability insurance.
- Multiple responsible parties may provide additional avenues for financial recovery.
Every case is different, and liability depends on the available evidence and Indiana law.
An experienced Hammond bar injury attorney can evaluate all potentially responsible parties after a serious alcohol-related collision.
Indiana’s Two-Year Deadline Applies to Dram Shop Claims
Some neighboring states have unique filing deadlines specifically for dram shop cases. Indiana does not. Instead, dram shop claims generally follow Indiana’s standard statute of limitations for personal injury actions.
In most cases, injured victims have two years from the date of the accident to file a lawsuit. Although two years may seem like plenty of time, waiting can seriously damage a claim. Important evidence—including surveillance footage, witness memories, receipts, and electronic records—may disappear long before the filing deadline arrives. Prompt investigation often provides the best opportunity to preserve critical evidence.
Dram Shop Attorney in Northwest Indiana: Common Defenses
Bars and restaurants frequently defend dram shop claims aggressively. Some common defenses include:
The Customer Was Not Visibly Intoxicated
The establishment may argue the patron appeared normal when served. Video footage, witness testimony, and employee statements may become critical in evaluating this issue.
The Business Had No Actual Knowledge
Indiana’s dram shop statute requires proof of actual knowledge, not merely that the establishment should have known.
An establishment may argue employees had no actual knowledge that the customer was visibly intoxicated or underage.
The Driver Became Intoxicated Somewhere Else
Another common defense is that alcohol was consumed at multiple locations.
Investigators may examine receipts, surveillance footage, phone data, and witness testimony to determine where alcohol was served and in what quantities.
Comparative Fault
Insurance companies may argue the injured victim contributed to the collision.
Indiana follows a modified comparative fault system, meaning compensation may be reduced if an injured person shares responsibility, and recovery may be barred if the claimant is found more than 50% at fault.
What Compensation May Be Available?
Every case is different. Depending on the facts, compensation may include damages for:
- Emergency medical treatment
- Hospital expenses
- Surgery
- Rehabilitation
- Future medical care
- Lost wages
- Loss of earning capacity
- Property damage
- Pain and suffering
- Emotional distress
- Wrongful death damages in qualifying cases
The value of a liquor liability claim Lake County Indiana residents pursue depends on numerous factors, including available insurance coverage, the severity of injuries, and the strength of the evidence.
What Should You Do After an Alcohol-Related Crash?
If you believe alcohol played a role in your collision:
- Call law enforcement immediately.
- Seek prompt medical treatment.
- Preserve photographs and videos from the scene.
- Obtain names and contact information for witnesses.
- Avoid discussing fault with insurance adjusters before understanding your rights.
- Contact an attorney as soon as possible so evidence from the establishment can be preserved before it is lost.
Dram Shop Attorney in Northwest Indiana FAQs
1. What is Indiana dram shop law IC 7.1-5-10-15.5?
Indiana’s dram shop statute allows certain claims against licensed alcohol providers that have actual knowledge that the person was visibly intoxicated at the time of furnishing the alcohol or knowingly serve a minor who later causes injuries to another person.
2. What evidence helps prove visible intoxication?
Important evidence may include surveillance video, drink receipts, employee testimony, witness statements, point-of-sale records, and other documentation showing the customer’s condition while alcohol continued to be served.
3. How long do I have to file a dram shop lawsuit in Indiana?
Unlike some neighboring states, Indiana generally applies the standard two-year personal injury statute of limitations to dram shop claims.
4. Why should I contact an attorney quickly?
Many bars automatically overwrite surveillance footage and dispose of business records. An attorney can send preservation letters quickly to help protect evidence that may be critical to your case.
Contact a Dram Shop Attorney in Northwest Indiana
If you or someone you love was injured by a drunk driver, don’t assume the impaired motorist is the only party that may be legally responsible. A thorough investigation may reveal that a licensed establishment violated Indiana’s dram shop law by knowingly serving a visibly intoxicated patron or a minor before the crash occurred.
The Northwest Indiana personal injury lawyers at Lerner and Rowe investigate alcohol-related crashes throughout Hammond, Gary, Merrillville, Valparaiso, and the surrounding Northwest Indiana communities. We work to preserve critical evidence, identify every potentially liable party, and fight for the compensation our clients deserve.
If you were injured in an alcohol-related collision, call our Merrillville or Valparaiso office today, fill out a contact form, or use LiveChat for a free consultation.
The information on this blog is for general information purposes only. Nothing herein should be taken as legal advice for any individual case or situation. This information is not intended to create, and receipt or viewing does not constitute, an attorney-client relationship.