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Hospitality & Liquor Liability

Bars, taverns, hotels, resorts, restaurants, fraternities, clubs, convention centers and virtually any type of establishment that is licensed to serve alcohol all have one thing in common—high-exposure for liquor liability. The stakes are high for the owners and operators of these establishments as they commonly face legal complaints based on laws known as Dram Shop statutes.

Marshall Dennehey has extensive experience representing members of the hospitality and liquor industry in dram shop litigation. Our clients include major restaurant chains, privately owned inns and taverns, hotel properties and a wide variety of entertainment venues. The attorneys in our practice group have successfully defended bars, taverns, hotels and a host of social organizations against claims from third parties arising from the alleged sale of alcohol to intoxicated patrons or to minors. We concentrate on the representation of liquor licensees and social hosts in cases ranging from simple injuries resulting from slip-and-falls to more significant complex personal injury and wrongful death claims.

With 40 years of experience in this practice area, we have worked with our clients to develop investigatory procedures, defense and discovery strategies, and trial preparation techniques that enable us to successfully defend such matters or settle them for reasonable sums. Our attorneys also possess the specific knowledge of the law and are intimately familiar with the unique dram shop statutes for every state in which we practice.

This hybrid area of law incorporates multiple liability exposures including:

  • Dram Shop/Liquor Liability
  • Amusement Sports & Recreation
  • Hotel and Resort Law
  • Hotel Security/Negligence
  • Restaurant and Retail Liability
  • Slip and Fall/General Liability
  • Water Park Safety

We are cognizant that hospitality and liquor cases often have a public relations aspect, and we are fully prepared to manage all collateral issues that may arise. Additionally, our multi-office coverage and familiarity with local rules and practice provide us an edge in defending this litigation.

Results

Claims Against Bar/Restaurant Dismissed in Dram Shop Action

The plaintiff spent the afternoon at our client’s restaurant/bar before driving ten minutes to his local Country Club to continue celebrating his birthday. Ninety minutes after he arrived at the Club, he fell down the stairs and suffered a severe brain injury. His Blood Alcohol Content was roughly three times the legal limit. The plaintiff had previously worked as a high-end custom wood finisher but is now unable to see color, among having other deficits, and he is alleged to be fully disabled.  After more than 20 depositions, and despite varying reports as to what the plaintiff had to drink at our client’s establishment, we were able to argue that he showed no signs of visible intoxication prior to the last service of alcohol by our client. Our motion was strenuously opposed by the Country Club, who argued there was testimony that the plaintiff appeared intoxicated upon his arrival at the Club. The court agreed with our argument that this was insufficient evidence for a jury to find that our client served alcohol to a visibly intoxicated plaintiff, and, as such, all claims against our client were dismissed and summary judgment was granted.

Summary Judgment Secured in a Dram Shop Liability Case

We won summary judgment in a challenging dram shop liability case against a large restaurant chain where the demand was $1 million. The plaintiff alleged our client was responsible for overserving the co-defendant driver prior to the subject motor vehicle accident. The court agreed with our arguments that the plaintiff failed to establish a violation of the The New Jersey Dram Shop Act. The plaintiff failed to present an expert report until opposing our motion for summary judgment. The expert report, which was submitted as an exhibit to the plaintiff’s opposition brief, did not extrapolate the defendant’s BAC at the time he left the defendant’s establishment. There was also no eyewitness testimony on the issue. The court rejected the plaintiff’s arguments that there was sufficient circumstantial evidence to support a jury’s conclusion that the co-defendant driver was visibly intoxicated at the time of service based on police observations at the scene of the accident and a (.17) BAC reading, which was administered approximately one hour and 30 minutes after leaving the restaurant. Distinguishing between prior case law and the subject circumstances, summary judgment was awarded based on the lack of either direct testimony or expert opinion as to the co-defendant’s state of intoxication at the time of service. 

Thought Leadership

Defense Digest

On the Pulse…Navigating the New Era of Dram Shop Liability: Marshall Dennehey’s Hospitality & Liquor Liability Practice Group Steps Forward

September 1, 2025

Dram shop liability, or liquor liability, is civil liability—typically for bars and restaurants—for personal injuries arising out of service of alcohol to either a minor or a visibly-intoxicated patron. And it is quite the hot topic these days. An article about “dram shop” cases recently graced the front page of The Philadelphia Inquirer; quite a far stretch from what has long been a somewhat overlooked and largely ignored area of personal injury litigation.  Marshall Dennehey has been handling liquor liability claims since the days when the most common question we fielded was, “What is dram shop?” These cases have always had the potential to inflame juries due to the volatile nature of the fact patterns and circumstances surrounding alcohol-related incidents. But now, in the era of the “nuclear verdict,” juries are rendering astronomical verdicts in these cases.  Philadelphia attorney, M. Scott Gemberling, and King of Prussia attorney, Tony Michetti, have been at the forefront of this litigation for the past 40 years. With Tony’s recent retirement, and Scott’s transition to senior counsel at the firm, we have been appointed co-chairs of the firm’s longstanding Hospitality & Liquor Liability Practice Group. While it may seem like a “new era” here we have been learning from and working with Scott and Tony for the past two decades. And while Scott and Tony have tried plenty of liquor liability cases to verdict, their true legacy is a forward-thinking strategy focused on smart, fixed, and speedy investigation of claims, along with an evaluation of early mediation. The hope is to avoid, where possible, the nuclear verdicts that are increasingly splashed across the front pages of newspapers. This is the legacy we intend to carry forward. Drawing on our many years of experience, our team is here to handle any type of accident that accompanies or is related to the service of alcohol. While the classic “dram shop” scenario involves the patron who leaves a bar or restaurant and gets into a motor vehicle accident while intoxicated, that is just one scenario. We have handled cases against bars and restaurants arising out of numerous types of injuries that can occur, including cases involving:  •    Alcohol poisoning •    Bar fights •    Car accidents •    Motorcycle accidents •    Shootings •    Stabbings •    Suicide •    University fraternity/sorority events Additionally, the members of our group routinely present on the topics of safe service of alcohol, as well as risk management best practices, to help avoid and protect against claims and litigation. Whether you are faced with a lawsuit involving alcohol, or whether you are a business looking to avoid such a situation, our Hospitality & Liquor Liability Practice Group is here to help.  Patrick and Carolyn co-chair our Hospitality & Liquor Liability Practice Group. Patrick works in our Pittsburgh, PA office, and Carolyn works in our Mount Laurel, NJ office.   Defense Digest, Vol. 31, No. 3, September 2025, is prepared by Marshall Dennehey to provide information on recent legal developments of interest to our readers. This publication is not intended to provide legal advice for a specific situation or to create an attorney-client relationship. ATTORNEY ADVERTISING pursuant to New York RPC 7.1. © 2025 Marshall Dennehey. All Rights Reserved. This article may not be reprinted without the express written permission of our firm. For reprints, contact tamontemuro@mdwcg.com.

Defense Digest

Who May Be Liable Under the Dram Shop Act?

December 1, 2023

Key Points:  Pennsylvania’s Dram Shop Act does not merely apply to “any person” but, rather, imposes an obligation on particular persons and entities.  To establish a basis for Dram Shop liability, it must be shown that the defendant “is either a licensee, or stepped into the shoes of a licensee.”  The absence of “profit or other indicia of commercial sale of liquor” renders the Dram Shop Act inapplicable. Under your argument, you’re saying if I have a party and I overserve people, you’re OK with me not being liable. But if I say, ‘Folks, try to contribute 5 to 10 bucks because I spent a lot of money to put this party on,’ under your theory, I’m liable?” - Justice David Wecht   In Klar v. Dairy Farmers of America, 300 A.3d 361 (Pa. 2023), the Pennsylvania Supreme Court revisited the extent to which an event host may be held liable for the actions of an intoxicated guest.  Klar involved a golf outing sponsored by Dairy Farmers of America for its employees that required employees to provide a monetary contribution to help defray the costs of green fees, food, and alcohol associated with the event. During the event, Roger Williams, an employee of Dairy Farmers, became intoxicated and was subsequently involved in a motor vehicle accident with David Klar. While Klar sought to impose liability under theories of common law negligence and violation of Pennsylvania’s Dram Shop Act, the Pennsylvania Supreme Court refused to extend the scope of the Dram Shop Act to include an organization, such as Dairy Farmers of America, that hosts an event at which alcohol is provided but is not a liquor licensee. With regards to his Dram Shop claim, Klar argued that Dairy Farmers of America fell into the “any other person” category of the Dram Shop Act, and by collecting money from its employees to purchase alcohol for the event, Dairy Farmers received consideration and then sold alcohol to a visibly intoxicated person. The Supreme Court, however, declined to extend the scope of the Dram Shop Act to this scenario, explaining that the Act’s applicability to “any other person” does not mean that every individual in this Commonwealth is exposed to Dram Shop liability. Rather, the meaning of “any other person” is cabined by its context and simply refers to persons whose actions place them into the same category as the preceding entities, i.e., those who engage in the commercial or quasi-commercial sale of alcohol for profit. In other words, in the context of the Dram Shop Act, “any other person” is one who, notwithstanding their lack of a license, engages in the business of selling alcohol. While the court explained that an individual or organization could potentially assume “licensee status,” thus triggering liability pursuant to the Act, such was not the case here, where the factual averments in Klar’s complaint were insufficient to establish that Dairy Farmers received any sort of “remuneration” to implicate liability. The court noted that Klar did not allege that Dairy Farmers collected funds from its employees to profit from the sale of alcohol; rather, the allegations that Dairy Farmers asked for a monetary contribution to offset event costs dispelled any suggestion that it organized the event to sell alcohol for financial gain.  As explained by the court, the mere pooling of money for a collective purchase of alcohol for shared consumption, absent any indicia of commercial sale or profit-seeking, does not implicate the Dram Shop Act. The court reasoned that, under Klar’s interpretation of “any other person” in the context of the Dram Shop Act, liability could be imposed upon a group of friends who pitch in money to (legally) purchase a bottle of liquor or a case of beer for their shared consumption. This interpretation is inconsistent with the long line of Pennsylvania cases which have held that only licensees are civilly liable for violations of the Dram Shop Act.  While Klar also raised a common law negligence theory of liability, the Supreme Court held that the plaintiff’s argument was foreclosed by well-established precedent refusing to extend common law liability to social hosts, which it found no reason to disturb. Pennsylvania courts continue to uphold the longstanding precedent that there is no social host liability at common law since competent adults are responsible for their own actions. In other words, it is the consumption of alcohol, not the furnishing of it by a social host, which is the proximate cause of any subsequent occurrence. Indeed, the very reason for the enactment of dram shop laws is the fact that, under the common law of torts, liability could not be imposed upon one who provided another with alcohol. Such statutes were an effort to supersede the common law; to provide an avenue for imposing liability upon the purveyors of alcohol where the common law did not.  It is worth noting that Klar’s claims against Dairy Farmers were dismissed at the pleadings stage. While the Supreme Court declined to extend the scope of the Dram Shop Act in this case, it has provided plaintiffs with a roadmap for drafting complaints in such a way as to set forth sufficient factual averments, which, at the very least, may permit a Dram Shop Act violation in a similar scenario to proceed beyond the pleadings stage.  *Sarah is a shareholder in our Scranton, Pennsylvania, office. She can be reached at 570.496.4654 or SEArgo@mdwcg.com.   Defense Digest, Vol. 29, No. 4, December 2023, is prepared by Marshall Dennehey to provide information on recent legal developments of interest to our readers. This publication is not intended to provide legal advice for a specific situation or to create an attorney-client relationship. ATTORNEY ADVERTISING pursuant to New York RPC 7.1. © 2023 Marshall Dennehey. All Rights Reserved. This article may not be reprinted without the express written permission of our firm. For reprints, contact tamontemuro@mdwcg.com.

Firm Highlights

Thought Leadership

Commonwealth Court Reaffirms the Constitutionality of Act 111's IRE Provisions

In this case, the claimant sustained a work injury of January 6, 1994, which was acknowledged by Notice of Compensation Payable (NCP). After the claimant’s receipt of 104 weeks of temporary total disability benefits, the employer filed a Request for an Impairment Rating Examination (IRE). The IRE was performed in May 2023 and the IRE physician found that the claimant had a 5% whole person impairment, under the AMA Guides. The employer filed a Petition based on the IRE results, and the Petition was granted by the WCJ. During litigation, the claimant argued that the IRE provisions of Act 111 (Section 306(a.3) of the Act) were not applicable to her injury, since it predated June 24, 1996, the date Act 57 went into effect, and that the IRE provisions were unconstitutional. The Workers’ Compensation Judge (WCJ)) granted the Petition and the Board affirmed. On appeal to the Commonwealth Court, the claimant argued that Act 111 violated the nondelegation doctrine and that its retroactive application to the claimant’s injury was unconstitutional. The court rejected the arguments on the basis that they had already found the same arguments without merit in multiple, prior cases. The court also addressed an argument made by the claimant that Act 111 was procedurally defective under the Pennsylvania Constitution because it was only considered on two days in each House after having undergone amendments and reassignments. The court noted that the Pennsylvania Constitution requires every bill to be considered on three different days in each House. The claimant maintained that, according to the legislative history, the bill did not receive three separate days of consideration from each House when it was assigned a new bill number. The court pointed out, however, that the bill number, H.B. 1840 remained constant and was considered on three occasions by the House. Further, the court concluded that minor amendments to the bill were germane to its original subject, which was to modify the Act’s IRE process, in accordance with Protz II.

Thought Leadership

Appellate Division Reversed Trial Judge's Orders Granting a Plaintiff's Section 40 Summary Judgement Motion

In Haskins v. Casey, et al., the plaintiff Dane Haskins worked for defendant Ekornes, Inc. (Ekornes) as a material handler. In June 2021, he filed a workers’ compensation claim petition for benefits due to a left shoulder injury in December 2020. He then resolved his workers’ compensation claim in November 2022 under an Order Approving Settlement. In January 2023, he filed a lawsuit against Ekornes and later amended to add additional claims and name other defendants, including the Ekornes president, chief financial officer, and director of human resources. In May 2025, a second amended complaint alleged that after he filed the workers compensation claim, Ekornes placed him on leave under the Family and Medical Leave Act (FMLA), denied his request for a work accommodation, and ultimately terminated him from employment in December 2021. He pleaded several causes of action asserting violations of the New Jersey Law Against Discrimination (LAD) as well as fraudulent concealment and wrongful discharge. The plaintiff then moved for partial summary judgment, seeking an order enforcing Section 40 of the Workers’ Compensation Act (WCA) as well as summary judgment on his FMLA claims. The defendants opposed the motions and cross-moved for summary judgment on the FMLA claims. After arguments, the court entered an order in December 2025, denying the FMLA motion and cross motion and granting the plaintiff’s Section 40 motion. In the order, the court permitted the plaintiff to pursue compensatory damages at trial in connection with the bodily injury claim. The court also allowed the plaintiff to present evidence of any workers’ compensation benefits to support his claim. The court then denied the defendant's subsequent reconsideration motion in February 2026. The defendants that appealed the Section 40 aspect of the orders. In reviewing the appeal de novo, the Appellate Division rejected the plaintiff's argument that the work-related injury arose out of his discrimination claims under the LAD. The plaintiff argued that he should be able to pursue a personal injury claim as a part of his LAD claim, noting that the employer’s compensation carrier would be able to assert a lien against any recovery against his LAD claims. In distinguishing between the Richter vs. Oakland Board of Education, 246 N.J. 507 (2021) case, in which the Court found that any recovery would be subject to a Section 40 lien as the allegation was that the defendants failed to accommodate her pre-existing diabetic condition, which resulted in bodily injury. In this case, the Appellate Division indicated that there was no bodily injury caused by Ekornes’ failure to accommodate a pre-existing disability. Rather, the shoulder injury was a result of a workers compensation claim, for which he received appropriate benefits previously. The Appellate Division noted that if the plaintiff was successful in proving his LAD claims, he would be entitled to damages caused by the discriminatory discriminatory conduct such as lost wages and emotional distress damages and that there will be no Section 40 lien. In addition, the Appellate Division disagreed that the petitioner could present evidence about and seek damages for his shoulder injury at trial. Although the petitioner argued that a defendant who retaliated against an employee for filing a workers’ compensation claim should not benefit from the exclusivity provision of the WCA, the Appellate Division noted that the Legislature did not include this type of scenario in the statue nor did any of the case law recognize this type of claim as a remedy. As such, the Appellate Division reversed the December 2025 order granting the the plaintiff’s Section 40 summary judgment motion as well as the February 2026 reconsideration motion order. The Appellate Division noted that they did not intend to limit the plaintiff in his pursuit of his other claims on under the LAD, FMLA, and workers’ compensation retaliation causes of action.

Thought Leadership

WCJ Improperly Refused to Conduct C&R Hearing and Erroneously Required Settlement of All Pending Petitions

In this case, the claimant sustained injuries in the course and scope of her employment as a registered nurse. The employer acknowledged the injury by a Notice of Compensation Payable (NCP).  Subsequently, a Workers’ Compensation Judge (WCJ) expanded the description of injury. The employer then filed a Termination Petition, alleging the claimant was fully recovered from the injuries. Providers filed Utilization Review (UR) Petitions, challenging UR determinations finding their chiropractic treatment to be not reasonable and necessary. A settlement of the claim was eventually reached, and the employer filed a Petition to Seek Approval of a Compromise and Release (C&R) Agreement. The C&R outlined that the agreement fully resolved all future workers’ compensation claims except for the termination and UR Petitions. Briefs were filed and one day later, the WCJ issued an Interlocutory Order which stated if instructions were not followed regarding filing of a C&R, a settlement hearing date would not be given. The employer complied with the order, and filed the C&R. Subsequently, the WCJ notified the parties that the C&R must resolve all issues in the petitions, or would not be entertained. A settlement hearing was never held, and the WCJ then issued a decision, granting the Termination Petition and dismissing the UR Petitions. The WCJ also said that the Petition for Approval of a C&R was dismissed without prejudice, as the issues in the Termination and UR Petitions went to a decision. The claimant appealed to the Workers’ Compensation Appeal Board (Board). The Board granted the claimant’s appeal, finding that the WCJ violated the requirement of Section 449 that an expedited hearing be held when a Petition for Approval of a C&R is filed.  The Board further held that it was legally incorrect for the WCJ to insist that the C&R resolve all issues raised by the pending Petitions. The Board remanded the case to a new WCJ, and Employer appealed to the Commonwealth Court. The court affirmed the Board and held that the WCJ erred, as a matter of law, by refusing to hold an expedited hearing within 30 days, once the Petition for Approval of a C&R was filed.  The court noted that the language of Section 449(b) is mandatory, and a settlement hearing is not discretionary or dependent on a party’s separate request for a stay, or whether the record has been closed. The court further rejected Employer’s argument that the case should not be remanded to a new WCJ for a new decision on the termination and and UR Petitions, as the Board passed no judgment on whether the C&R Agreement resolved the termination and UR Petitions, and left it for the WCJ to decide in connection with the Petition for Approval of a C&R.