7 V.S.A. § 501 Unlawful sale of alcoholic beverages; civil action for damages
501. Unlawful sale of alcoholic beverages; civil action for damages
(a) Action for damages. An injured person may bring an action in the person’s own name pursuant to this subsection.
(1) Unlawful sale. An injured person shall have a right of action against any licensee who caused in whole or in part the intoxication of the intoxicated person by selling or furnishing alcoholic beverages:
(A) to a minor as defined in section 2 of this title; or
(B) to a person after legal serving hours.
(2) Negligent service. An injured person may bring an action against any licensee who negligently furnishes alcoholic beverages to a person:
(A) apparently under the influence of alcohol; or
(B) who it would be reasonable to expect would be under the influence of alcohol as a result of the amount of alcoholic beverages served by the licensee to that person.
(3) Negligence; prudent person. A licensee’s conduct is negligent under this subsection if the licensee knows, or if a reasonable and prudent person in similar circumstances would know, that the individual being served is intoxicated.
(4) Licensee’s knowledge; individual consumption. A licensee is not chargeable with knowledge of an individual’s off-premises consumption of alcoholic beverages unless the individual’s appearance and behavior, or other facts known to the licensee, would put a reasonable and prudent person on notice of the individual’s consumption of alcoholic beverages.
(b) Survival of action; joint action. Upon the death of either party, the action and right of action shall survive to or against the party’s executor or administrator. The party injured or the party’s legal representatives may bring either a joint action against the intoxicated person and the licensee or a separate action against either of them.
(c) [Repealed.]
(d) Statute of limitations. An action to recover damages under this section shall be commenced within two years after the cause of action accrues, and not after.
(e) Evidence.
(1) In an action brought under this section, evidence of responsible actions taken or not taken is admissible, if otherwise relevant.
(2) Responsible actions may include instruction of servers as to laws governing the sale of alcoholic beverages, training of servers regarding intervention techniques, admonishment to patrons or guests concerning laws regarding the consumption of alcoholic beverages, and inquiry under the methods provided by law as to the age or degree of intoxication of the persons involved.
(f) Right of contribution. A defendant in an action brought under this section has a right of contribution from any other responsible person or persons, which may be enforced in a separate action brought for that purpose.
(g) Social host.
(1) Except as set forth in subdivision (2) of this subsection, nothing in this section shall create a statutory cause of action against a social host for furnishing alcoholic beverages to any person without compensation or profit. However, this subdivision shall not be construed to limit or otherwise affect the liability of a social host for negligence at common law.
(2) A social host who knowingly furnishes alcoholic beverages to a minor may be held liable under this section if the social host knew, or a reasonable person in the same circumstances would have known, that the person who received the alcoholic beverages was a minor.
(h) Definitions. As used in this section:
(1) “Apparently under the influence of alcohol” means a state of intoxication accompanied by a perceptible act or series of actions that present signs of intoxication.
(2) “Injured person” means a spouse, child, guardian, employer, or other person, other than the intoxicated person, who is injured in person, property, or means of support by an intoxicated person or in consequence of the intoxication of any person.
(3) “Intoxicated person” means an intoxicated individual who caused injury to a person, a person’s property, or a person’s means of support.
(4) “Licensee” means the holder of a first-, third-, or fourth-class license under this title, and the license holder’s employees, who sells or furnishes alcohol to an intoxicated person.
(5) “Social host” means a person who is not the holder of a license or permit under this title and is not required to hold a license or permit under this title.
(i) Liability insurance required. The Department of Liquor and Lottery, in consultation with the Department of Financial Regulation, shall adopt rules governing minimum policy requirements, including coverage amounts, for liquor liability insurance. Prior to the issuance or renewal of a first-, third-, or fourth-class license, the Department of Liquor and Lottery shall require each licensee or applicant to carry liquor liability insurance that meets minimum coverage requirements adopted by the Department.
Amended 1987, No. 103, § 1; 1999, No. 116 (Adj. Sess.), § 1; 2017, No. 83, § 73; 2023, No. 17, § 1, eff. July 1, 2023; 2023, No. 17, § 2, eff. July 1, 2026.