Three sources of recovery
- No-fault benefits. Medical bills, wage loss, replacement services and attendant care, paid by the insurer first in line under the priority rules. Fault plays no role. See which insurer pays.
- The driver. Pain and suffering if you meet the serious impairment threshold, plus medical and wage losses PIP did not pay. The driver’s liability insurance is the usual source. If the vehicle belonged to someone else who let them drive it, the owner is liable too (MCL 257.401).
- The seller of the alcohol. A dram shop claim against a licensed bar, restaurant or store. Retail licensees must show at least $50,000 of financial responsibility, usually liquor liability insurance (MCL 436.1803), which often matters when a drunk driver has low limits or none.
The dram shop claim
MCL 436.1801 prohibits a retail liquor licensee from selling, furnishing or giving alcohol to a minor or to a person who is visibly intoxicated. If that unlawful sale was a proximate cause of your injury, you, or your spouse, child, parent or guardian, can sue the licensee.
Visible intoxication
The question is whether the driver showed signs of intoxication at the time they were served: slurred speech, stumbling, loud or erratic behavior. A blood alcohol number alone does not prove it. Evidence comes from witnesses, other patrons, bar staff, receipts and itemized tabs, and surveillance video. Bar video is often overwritten quickly, so a preservation letter should go out immediately.
The rules that trip people up
- 120-day notice. You must give written notice to every defendant within 120 days after you hire a lawyer to pursue the claim. Missing it is grounds to dismiss the claim against any licensee who was not notified. There is an exception if the facts showing the licensee might be liable could not reasonably have been known within that period.
- Two-year limit. The suit must be filed within two years of the injury or death. That is a year shorter than the three-year limit for suing the driver.
- Name and retain. The intoxicated driver must be named as a defendant and kept in the case until trial or settlement. You cannot settle with the driver first and then sue the bar.
- Last-seller presumption. The law presumes that a licensee other than the one that last served the driver did not cause the harm. That presumption can be rebutted with evidence.
- Exclusive remedy. The dram shop act is the only way to recover money from a licensee for serving alcohol. The licensee can use the driver’s defenses, such as arguing you do not meet the threshold.
The intoxicated person has no dram shop claim of their own, and family members cannot claim for the loss of the drunk driver’s support or companionship.
Two years, and 120 days from when you hire a lawyer. A dram shop claim must be filed within two years of the crash, and written notice must reach every defendant within 120 days after you retain counsel. Call early so both can be met.
Punitive damages
Many people expect a drunk driver to pay punitive damages. In Michigan, punitive damages are generally not recoverable unless a statute authorizes them. Your damages are compensatory: medical costs, lost income, and pain, suffering and loss of enjoyment of life. Intoxication still shapes the case. It makes fault easy to prove, it limits the driver’s ability to blame you under comparative fault, and it affects how insurers value the claim.
The criminal case
A drunk driving prosecution runs separately from your civil claim. A conviction or plea, blood test results and the police crash report become evidence for you. You do not have to wait for the criminal case to end before making your claim, and the civil deadlines keep running while it is pending.
What to do now
- Get the police report number and the name of the investigating officer.
- If you know where the driver was drinking, write it down. Receipts and social media posts can show it too.
- Apply for no-fault benefits within one year.
- Talk to a lawyer before speaking with the driver’s or the bar’s insurer. See what not to say to an adjuster.
If the crash was fatal, the claims belong to the estate. See wrongful death. Contact us for a free review.
Sources: MCL 436.1801; MCL 436.1803; MCL 257.401; MCL 500.3135; MCL 500.3114; MCL 600.5805; Casey v Auto-Owners Insurance Co (Mich App, 2006).
Questions people ask us
Can I sue the bar that served the drunk driver who hit me?
Yes, under Michigan’s dram shop act, if the bar or store sold or served alcohol to the driver while the driver was visibly intoxicated, or to a minor, and that sale was a proximate cause of your injuries. The suit must be filed within two years of the injury.
Can I get punitive damages from a drunk driver in Michigan?
Generally no. Michigan courts do not award punitive damages unless a statute authorizes them. Drunk driving still matters, because it is powerful evidence of fault and of how the crash happened.
Does the drunk driver have to be in the dram shop lawsuit?
Yes. Michigan law bars a dram shop suit unless the intoxicated person is named as a defendant and kept in the case until trial or settlement.
Do I still get no-fault benefits if a drunk driver hit me?
Yes. Your PIP benefits are paid by the insurer first in line under the priority rules, the same as any other crash. The claims against the driver and the bar are in addition to those benefits.