The Dram Shop law controls liability in cases involving retail liquor licensees. There are, of course, circumstances in which a drunk driver was furnished alcohol at a private residence, party, or event. In those circumstances, Michigan law can impose liability under what is called "Social Host Liability." Social host liability is the potential liability of a person or an entity other than a retail licensee for the unlawful furnishing of alcoholic beverages. The liability of a social host in Michigan has been recognized only in the case of providing alcohol to a minor.
The "social host" must knowingly provide alcoholic beverages to a minor or have failed to diligently inquire whether the individual was less than 21 years old. The Michigan Courts have held that the social host must actually provide the alcoholic beverages and not just the setting in which the alcohol is consumed. However, if the minor is under 18, the parents may have a duty to supervise the minor children and this can provide the basis for a lawsuit.