Punitive Damages in Texas Dram Shop Cases
In this installment of our continuing Dram Shop series, we address the recovery of exemplary/punitive damages[1] in Texas dram shop cases.
Trial courts in Texas often deny motions for summary judgment challenging the propriety of punitive damages in Dram Shop cases, and permit exemplary damages to be awarded by juries upon a finding of gross negligence. But is this proper? No. A claim for gross negligence is expressly not allowed under the Act.
Based on the plain language of the Texas Dram Shop Act (the "Act")[2] and case law addressing the question, exemplary damages are not recoverable. Courts should refuse to charge the jury on such damages, and should grant Motions for Summary Judgment challenging them. Failure to do so results in prejudice and harm to the Defendants in such cases.
