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What has to be proven in an Iowa dramshop claim?

A: The most common Iowa Dramshop claim is when a person is served too much alcohol at a bar, then leaves the bar while drunk, is involved in a car accident and is charged with OWI- operating while intoxicated.  Another common Iowa Dramshop claim is when a drunk bar patron assaults one or more people at a bar.   Liability exists under the Dramshop Act when the bar owner, liquor licensee or permittee does either;

 1. Sell and serve alcohol to an intoxicated person when the licensee or permittee knew or should have known the person was intoxicated; or

 2. Sell and serve the person to a point where the licensee or permittee knew or should have known the person would become intoxicated. 

Iowa Code § 123.92.
The Iowa Supreme Court has stated, “Iowa’s dram shop statute is intended to place a hand of restraint on persons permitted to sell liquor and should be construed liberally to discourage the selling of excess liquor.”  Therefore, the cases interpreting the Dramshop law provide that the sale and serving of alcoholic beverages does not require evidence from the Plaintiff that the intoxicated person actually consumed them.  The "sold and served" language in Dramshop Act requires that alcoholic beverages be served for consumption on seller's premises such that it does not apply to gas stations, grocery stores and other liquor licensees that do not serve alcohol at their business.