Greenspoon Marder Hospitality, Alcohol & Leisure Blog: Florida Wholesaler Attacks the Three Tier System

Hospitality, Alcohol & Leisure Blog Oct 31, 2019 Miami, FL

For the uninitiated, Beverage Law mandates that three tiers exist in the alcohol beverage distribution chain layered from supplier, distributor and finally to retailer. As discussed in other blog posts, tied house prevents, generally speaking, one level from operating in the space of another level. The three tier system is the bedrock of the alcohol beverage industry with its existence controlled and monitored by federal and state(s) permitting and licensing schemes.

Orion Wine Imports, LLC of Clearwater, Florida, since 2018, has conducted a full frontal attack on the California’s three-tier system under a Granholm argument by filing suit in U.S. District Court.

First, Orion desires to sell (presumably) from its Florida warehouse directly to California consumers bypassing the states licensing requirements. Orion has argued that under the watershed U.S. Supreme Court decision of Granholm, (states cannot discriminate against out of state wineries from shipping to consumers if in state wineries are permitted to do same), California is discriminating against out of state wholesalers by not letting it sell directly to California retailers. Orion has argued that this type of discrimination violates the dormant commerce clause and should not be permitted.

The U.S. District Court, however, thinks otherwise, and has granted Defendants (California ABC) Motion(s) to Dismiss on two amended complaints filed by Orion. Apparently Orion has filed a third amended compliant which of course the California ABC has moved to dismiss. Hearing is set for November 22. Anyone care to wager on the outcome?

About Greenspoon Marder

Greenspoon Marder LLP is a full-service law firm with over 240 attorneys and more than 20 office locations across the United States. With operations from Miami to New York and from Denver to Los Angeles, our firm attracts some of the nation’s top talent in key markets and innovation hubs. Our core practice areas include Real Estate, Litigation, and Transactional Services, complemented by the capabilities of a full-service firm. Greenspoon Marder has upheld a spot on The American Lawyer’s Am Law 200 as one of the top law firms in the U.S. since 2015, and our goal is to provide exceptional client service by developing a thorough understanding of each client’s business needs and objectives in order to provide strategic, cost-effective solutions.

MEDIA CONTACT

Natalie Villanueva, Director of Marketing
954.333.4308 | [email protected]

This Greenspoon Marder LLP Client Alert is issued for informational purposes only and is not intended to be construed or used as general legal advice nor a solicitation of any type. Please contact the author(s) or your Greenspoon Marder LLP contact if you have any questions regarding the currency of this information. The hiring of a lawyer is an important decision. Before you decide, ask for written information about the lawyer’s legal qualifications and experience.

Previous Next

News

Greenspoon Marder Hospitality, Alcohol & Leisure Blog: Florida Wholesaler Attacks the Three Tier System

Share

News & Events

News & Events