Name and Retain Requirement

The State of Michigan has specific laws dealing with lawsuits against businesses that sell alcohol to the public when that sale results in the personal injury, death, or property damage to another. This law is commonly known as the Dram Shop Act. The law can be found at MCL 436.1801. The law states in pertinent part that:

(2) A retail licensee shall not directly, individually,

or by a clerk, agent, or servant sell, furnish, or

give alcoholic liquor to a minor except as

otherwise provided in this Act. A retail

licensee shall not directly or indirectly,

individually or by a clerk, agent, or servant sell,

furnish, or give alcoholic liquor to a person who

is visibly intoxicated.

(3) Except as otherwise provided in this Section,

an individual who suffers damage or who is

personally injured by a minor or visibly

intoxicated by reason of the unlawful selling,

giving, or furnishing of alcoholic liquor to the

minor or visibly intoxicated person, if the

unlawful sale is proven to be a proximate cause

of the damage, injury, death, or the spouse,

child, parent, or guardian of that individual

shall have a right of action in his or her name

against the person who by selling, giving,

or furnishing the alcoholic liquor has caused

or contributed to the intoxication of the person

or who has caused or contributed to the damage,

injury, or death.

The Dram Shop Act, like many other laws in Michigan, has several pitfalls that must be avoided to pursue such an action. First, a Dram Shop Case must be brought by the person who suffered the personal injury or death within two years after the personal injury or death. Second, a Plaintiff seeking damage under the DRAM Shop Law shall give written notice to all Defendants within 120 days after the entering an attorney/client relationship for the purpose of pursuing a claim under the Dram Shop Act. The failure to give the required written notice within the time specified is grounds for dismissal of the claim to any Defendant who did not receive the required notice unless sufficient information for determining that a retail licensee might be liable under the Section, was not known and could not reasonably have been known within the 120 days. Id. @ Section 4.

In addition to the statute of limitations and “name and retain” provisions of the DRAM Shop Act, practitioners must also insure that the minor or allegedly intoxicated person is named as a party Defendant in any lawsuit and must be retained in that lawsuit “until the litigation is concluded by trial or settlement.” Id. @ Paragraph (5)

Failure to “retain” the minor or allegedly intoxicated person in litigation to its conclusion will result in dismissal of the retail establishment.

The importance of retaining an attorney who is knowledgeable in Dram Shop Cases cannot be underestimated. Timely retention of an attorney who will do necessary investigation into all potentially liable parties is essential to preserve all of your rights in a Dram Shop Case. Failure to comply with the rules regarding the statute of limitations for a Dram Shop Case, the naming of the proper Defendants or retaining the individual Defendants for the entirety of the litigation will likely result in dismissal of your claim.

Please contact our experienced attorneys to discuss a potential claim for a Michigan personal injury to discuss the Dram Shop.

DO I HAVE A DRAM SHOP CASE?

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