Part I — Foundations of Dram Shop Law in Texas

Chapter 1 — Introduction

Texas has one of the most active dram shop litigation landscapes in the United States. Since the Supreme Court of Texas recognized a cause of action in El Chico Corp. v. Poole, 732 S.W.2d 306 (Tex. 1987) in 1987, plaintiffs’ lawyers have aggressively pursued bars, nightclubs, restaurants, and their insurers under the Texas Dram Shop Act.

For defense counsel, these cases present unique challenges. They typically involve catastrophic injuries or deaths, sympathetic plaintiffs, and jurors with strong personal views about drunk driving. Yet the Texas Dram Shop Act is narrow by design. It requires proof of “obvious intoxication” at the time of service, proximate cause, and limits liability to a statutorily defined “provider.”

Recent developments, particularly the Texas Supreme Court’s 2025 decision in Raoger Corp. v. Myers, 711 S.W.3d 206 (Tex. 2025), have significantly strengthened the defense position by clarifying that circumstantial evidence such as blood alcohol calculations cannot establish the required elements without direct observational evidence of intoxication at the time of service.

This manual is written from the defense perspective. It is not an academic treatise. It is a practical guide: statutory text, case law, strategy, sample pleadings, discovery tools, and trial tactics. Its purpose is to equip defense counsel, insurers, and operators to defend dram shop claims effectively from the moment the petition is served through trial, appeal, and settlement.