The Texas Dram Shop Act potentially allows an injured party to seek compensation for injury or loss after an accident caused by a drunk driver. Under the Texas Dram Shop Act, an injured party can potentially recover from a restaurant or bar that served someone who was obviously intoxicated if that person causes an accident.
Bars and restaurants have a defense under the Texas Dram Shop Act called the “Safe Harbor Defense”. In order to qualify for the defense, the bar or restaurant must 1) require all employees to receive certification from a TABC approved training program, 2) the employee must have actually attended the program and 3) the employer must not have encouraged the employee to overserve.
Bars and restaurants can encourage employees to overserve through advertisements for “2 for 1 beers” or “ladies drink free all night” or shots during happy hours advertisement. Although, they are not direct encouragement, the Texas Courts have agreed that this is considered encouragement under the Act.