ALEXANDRIA, VA – In a clear and convincing win for the 21st Amendment and for state-based alcohol regulation, the Second District Court of Appeals today ruled in favor of the existing, effective laws of New York State in Buy Rite, Inc. v. Boyle. Buy Rite is an Indiana-based retailer seeking to ship alcohol direct to residents of New York. The Court ruled that New York’s laws “do not discriminate against out-of-state producers in violation of the Commerce Clause."
“The Second Circuit’s decision upholds the current state-based system of alcohol regulation and validates the three-tier system,” said NBWA President Craig Purser. “It is unfortunate that plaintiffs’ attorneys continue to pursue profits ahead of the public’s interest by attempting to strike down effective laws that provide a balance between the consumer’s interest in choice, variety and selection in a competitive environment and the public’s interest in regulation within an orderly marketplace.”
In the ruling, the Court strongly rejected the plaintiff’s case, which was an assault on state-based alcohol regulation and the three-tier system of alcohol distribution, recognizing that the Supreme Court of the United States has affirmed the legality of the three-tier system and that it does not violate the U.S. Constitution.
“While we are pleased with today’s decision, numerous legal changes continue,” Purser added. “States must continue to defend their laws as special interests work to undermine effective alcohol regulation.”
Today’s decision comes on the heels of a ruling in Washington State that determined the State of Washington should repay Costco for approximately $1.9 million of legal fees despite the fact that the Ninth District Court of Appeals ultimately upheld the vast majority of Washington’s challenged laws and ruled against Costco.
Read more commentary about this decision - and post your own questions and comments - at www.AlcoholLawReview.com.
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Founded in 1938, the National Beer Wholesalers Association advocates before government and the public on behalf of more than 2,750 licensed independent beer distributors with operations servicing every congressional district and state across the country. Beer distributors are committed to ensuring that the products they provide are consumed legally, moderately and responsibly. For more information about beer distributors, please visit www.nbwa.org.