The Alabama Supreme Court on Nov. 6 upheld a $900,000 verdict against Walmart and overruled a 1934 decision, confirming that James Reed’s estate could seek damages under Alabama’s Dram Shop Act after he was struck and killed by an intoxicated driver.
Reed’s widow, Bonnie Estell, sued Walmart on behalf of his estate after the company’s Orange Beach store sold alcohol to the 20-year-old driver a day before the crash. A Baldwin County jury awarded the estate $900,000 in compensatory damages on Aug. 13, 2025, and awarded no punitive damages.
Under the law in effect at the time, people harmed by someone’s intoxication could seek damages from a seller whose unlawful sale caused or contributed to that intoxication. Walmart argued that the law did not allow a claim for Reed’s death and that Estell lacked authority to bring it.
The court rejected both arguments. An Indiana court had appointed Estell special administrator of Reed’s estate. In confirming that the law allowed a claim for death, the court expressly overruled Webb v. French, the 1934 decision Walmart had cited.
Walmart also argued that its employee’s ID check shielded the company from liability. Justice Michael Mendheim, writing for the majority, said Alabama’s alcohol regulations require a driver’s license used as proof of age to be valid. The court held that the trial judge properly let the jury decide whether Walmart’s sale violated the law.
Jackson Walters, a University of Alabama student on spring break, used a fake Georgia driver’s license showing he was 21 to buy champagne and a 12-pack of hard seltzer on March 15, 2022. A Walmart employee examined the license for less than five seconds before approving the sale at a self-checkout kiosk, according to the court’s opinion. An expert for Estell testified that the sharp edge around the photo and the placement of the signature were visible signs the license was fake.
Walters testified that he drank at least four of the hard seltzers the next afternoon and was under the influence when he drove to get dinner. He struck Reed, 80, of Indiana, as Reed crossed Highway 180 on a mobility scooter in Gulf Shores. Reed was flown to a hospital, where he died upon arrival. A breath test after the crash registered 0.11.
Justice Brad Sellers dissented, arguing that Walmart took reasonable steps to verify Walters’ age and should not be held liable for failing to spot the fake license.
The Legislature amended the Dram Shop Act in 2023, adding a knowledge requirement and defining it to include what an alcohol provider should have known under the circumstances. The amendment took effect April 19, 2023. The court applied the earlier law to the March 2022 sale.
Sherri Blevins is a staff writer for Yellowhammer News. You may contact her at [email protected].
