Dramshop Action Given New Life in Kentucky

Dramshop Action Given New Life in Kentucky

            The Kentucky Court of Appeals has declared KRS 413.241(1) unconstitutional and thereby has breathed new life into the dramshop claim in Kentucky.

A dramshop claim is a claim against a restaurant or bar or other establishment for negligence in serving alcohol to a patron who a reasonable person would know to be intoxicated. On July 15, 1988 the Kentucky legislature created the Kentucky Dram Shop Act that set forth the rules for establishing a dram shop claim. Unfortunately for the victims, this statute greatly restricted the claim for irresponsibility in dispensing alcohol.

The Court of Appeals in Taylor v. King and Skyline Motel II Corp, not yet published, has declared two of the most damaging aspects of KRS 413.241(1) to be unconstitutional. KRS 413.241(1) states that, in a motor vehicle accident, the drunken driver is the proximate cause of the accident and not the establishment for serving the alcohol. This provision was struck down because the legislature is making a decision only the jury can make, which violates the separation of powers set forth in the Kentucky constitution. Additionally, the Court of Appeals struck down the restriction against punitive damages because the legislature cannot take away rights granted by the constitution without changing the constitution.

The Court of Appeals is not the final level of the appellate courts in Kentucky and it is likely that this case will be appealed to the Kentucky Supreme Court, which means it is not the law of Kentucky just yet. It is the opinion of the Kentucky Auto Accident Attorney that the opinion is on solid ground and should be followed by the Kentucky Supreme Court.