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Texas Dram Shop Act Basics: When Alcohol Providers May Be Liable Under Chapter 2

By Pacheco Couceiro

Injuries after someone has been drinking concern families and businesses across Brownsville and the Rio Grande Valley. Texas addresses when a person or business that sells or serves alcohol may face civil liability through Chapter 2 of the Texas Alcoholic Beverage Code, often called the Dram Shop Act. This article summarizes Chapter 2 and related Alcoholic Beverage Code provisions on the Texas statutes site, plus Texas Alcoholic Beverage Commission (TABC) pages. Sources were checked on November 6, 2026. This article does not evaluate any particular crash, bar, restaurant, or claim, and it does not predict any outcome.

What Chapter 2 covers

Alcoholic Beverage Code Chapter 2 is titled "Civil Liabilities for Serving Beverages." It creates a statutory framework for certain civil claims against "providers" of alcoholic beverages and states that the chapter supplies the exclusive cause of action for providing an alcoholic beverage to a person 18 years of age or older (Section 2.03(c)).

Section 2.02(a) also preserves a common-law claim against an individual whose own consumption of alcohol allegedly caused personal injury or property damage. In other words, Chapter 2 focuses on the person or business that provided the alcohol; it does not erase claims against the drinker.

Who is a "provider"

Section 2.01 defines the key terms:

A licensed bar, restaurant, club, or package store can fall within the definition when it sells or serves alcohol. The statute also reaches a person who "otherwise sells" an alcoholic beverage to an individual. Whether a person or entity meets the definition depends on the facts.

The adult "obviously intoxicated" claim under Section 2.02(b)

Section 2.02(b) states that providing, selling, or serving an alcoholic beverage may be made the basis of a statutory cause of action under Chapter 2, and may also support a revocation proceeding under Section 6.01(b) of the Code, upon proof of both of the following:

The statute supplies that two-part standard. It does not list physical signs, blood-alcohol thresholds, or witness formulas. Questions about what was "apparent" and whether intoxication proximately caused the harm depend on the evidence. This article does not invent case holdings beyond the statutory language.

Claims involving minors under Section 2.02(c)

Section 2.02(c) addresses a different situation. An adult 21 years of age or older is liable for damages proximately caused by the intoxication of a minor under the age of 18 if:

That subsection covers certain adults who serve or allow alcohol for minors under 18. It is separate from the Section 2.02(b) adult standard.

Exclusivity and limits of Chapter 2

Section 2.03 states that:

Chapter 2 itself does not create open-ended common-law duties beyond the text of the chapter.

Seller training and when an employee's acts may not be attributed to the employer

Chapter 2 does not contain a separate labeled "safe harbor" for the adult claim in Section 2.02(b). A related provision appears in Alcoholic Beverage Code Section 106.14.

Section 106.14 says that, for purposes of Chapter 106 and any other provision of the Code relating to sales, service, dispensing, or delivery of alcoholic beverages to a minor or an intoxicated person (among other listed situations), the actions of an employee shall not be attributable to the employer if all three of the following are true:

Section 106.14 also directs TABC to adopt rules for approved seller training programs. TABC publishes Code and rules information on its laws page and website. Whether Section 106.14 applies, and whether its three conditions are met, are fact-specific. This article only restates the statute.

Proportionate responsibility and deadlines

Chapter 2 does not spell out how fault percentages are divided among a provider, a drinker, and others. Broader rules on modified comparative fault may still matter when multiple parties or the injured person's fault are at issue. Chapter 2 also creates no special pre-suit notice rule like the Tort Claims Act. Ordinary deadlines, including the personal injury statute of limitations, still matter, and death cases can involve wrongful death and survival rules. None of those replace the proof requirements in Section 2.02.

Practical steps after an alcohol-related injury in South Texas

1. Get medical care and document the scene

Seek care promptly. Keep discharge papers, bills, and photos of vehicles, roadway conditions, and any visible evidence of alcohol service if it can be obtained lawfully.

2. Preserve the timeline

Write down when and where alcohol was purchased or served, who was present, what was observed about the drinker's condition, and how the injury occurred. Dates and times matter for both the "at the time the provision occurred" language in Section 2.02(b) and for lawsuit deadlines.

3. Identify possible providers

Note the name of any bar, restaurant, store, event venue, or other seller, and keep receipts, credit-card statements, ride receipts, and witness names.

4. Be careful with statements and releases

Insurance adjusters and businesses may ask for recorded statements or early releases. Read anything before signing.

5. Gather official records

Crash reports, police offense reports, and medical records often become important. TABC licensing and enforcement information may also be relevant when a licensed provider is involved; start with the official TABC site.

6. Calendar the filing deadline

Do not assume an alcohol-related injury has a longer deadline than other personal injury claims. Confirm the applicable limitations period early.

Frequently asked questions

Does Chapter 2 automatically make a bar liable every time a customer crashes after drinking?

No. Section 2.02(b) requires proof that it was apparent to the provider that the person was obviously intoxicated to the extent of presenting a clear danger to himself and others, and that the intoxication was a proximate cause of the damages.

Can I still sue the drunk driver?

Section 2.02(a) says Chapter 2 does not affect the right to bring a common-law cause of action against the individual whose consumption allegedly caused the injury or property damage.

What if someone died?

Wrongful death and survival claims have their own rules. See our article on Texas wrongful death and survival claims.

Is seller training a complete defense under Chapter 2?

Section 106.14 sets conditions under which an employee's actions shall not be attributable to the employer. Whether those conditions are satisfied, and how the section interacts with a particular claim, depends on the facts and the statute's text.

Related articles

Questions in Brownsville and the Rio Grande Valley

Pacheco Couceiro assists injured people and families in Brownsville and South Texas with personal injury matters. If you or a family member was hurt after someone was served or sold alcohol and you want to understand how Chapter 2 of the Alcoholic Beverage Code fits with the documents you have, you can contact the office to review those records.


This article is general information, not legal advice. Reading it or contacting the office does not create an attorney-client relationship.

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