In its recent decision in Cavalier Distributing Co., Inc. v. Lime Ventures, Inc. (link to opinion), the Sixth Circuit Court of Appeals affirmed a ruling denying an injunction to a beer wholesaler after a successor importer failed to sell brands
Ashley Brandt
Answering the need for more accessible libation legal information, Ashley Brandt started the Libation Law Blog with the hope to address real questions for real food and beverage clients. Located in Chicago, Ashley’s belief in readily available information drives the blog and his law practice out of Goldstein & McClintock.
Website:
https://libationlawblog.com/
Crafting Clarity in Alcohol Franchise Transfers: Lessons from DET Beverages v. Willett Distillery
Navigating the legal labyrinth of alcohol franchise laws requires precision, as highlighted in DET Beverages v. Willett Distillery, where procedural missteps led to a court dismissal. This case provides a critical lens into Tennessee’s franchise laws, particularly regarding the transfer…
State Supreme Court Upholds 3-Tier Separation and Limits on Franchise Protections
The case S&H Independent Premium Brands East, LLC v. Alcoholic Beverages Control Commission (SJC-13541) deals with the interpretation of Massachusetts’ alcohol distribution laws and whether protections afforded to in-state entities apply to out-of-state companies holding certain certifications.
S&H Independent Premium…
Case involving alcohol law allowing in-state distilleries shipping direct to citizens and prohibiting out-of-state distilleries from doing the same allowed to proceed after direct comparison to Granholm.
In a classic Granholm v. Heald situation involving a lack of parity between in-state and out-of-state distilleries, Washington state allows in-state distilleries the privileges of direct sale and shipment of their liquors to Washington residents and restricts out-of-state distilleries from…
Court finds statute barring retailer warehouse storage out of jurisdiction of alcoholic beverage control authority does not violate Dormant Commerce Clause. Finally, a Tennessee Wine case that is NOT about direct wine shipping.
We will look back to find that the greatest result of Tennessee Wine’s “test” allowing “each State leeway to enact the measures that its citizens believe are appropriate to address the public health and safety effects of alcohol use and…
The Tennessee Wine Test? 6th Circuit falls in line with requiring evidence of out-of-state alcohol shipping restriction’s health and safety benefits in order to surmount a Dormant Commerce Clause challenge. The State says it wants to take the matter to the Supreme Court.
“However, the Court in Lebamoff did not hold that direct ship restrictions are always constitutional. The concurring opinion, which had the support of a majority of the panel, emphasized that the Court upheld Michigan’s statute because “the plaintiffs ha[d] not…
1st Circuit closes ranks with those Circuits reading Tennessee Wine as requiring States prove alcohol laws discriminating against out-of-state interests affect health or safety goals or other legitimate interests
The Circuits are by and large falling into line regarding the implications and procedures of Tennessee Wine when Dormant Commerce Clause challenges are brought against State alcohol-related laws and regulations. They are rejecting the notion that a summary dismissal of…
Another court relies on the discounted cash flow analysis and not the simple multiple of gross profits for valuing distribution rights. Don’t worry, the DCA can result in acceptable numbers as well.
The old adage of taking a multiple of the gross profits earned by a beer distributor is the typical response you’ll receive in asking about the fair market value of the distribution rights for a given brand. We hear it…
6th Circuit hears oral argument in Ohio wine shipping case. Questions regarding implementing an out-of-state license and the evidentiary basis for factual assertions regarding public health and safety justifications for shipping prohibitions predominate.
The appeal results from a challenge in Ohio. An out-of-state wine retailer and an in-state wine enthusiast brought suit against the state of Ohio looking for a judgment that the inability of the out-of-state wine shipper to obtain a retail…
Court rejects wine supplier’s attempt to dismiss wine distributor’s lawsuit for improper termination and reasonable compensation finding termination for lack of prompt payment and assertions of improper credit require factual determination.
A Michigan Federal Court has ruled that the motion to dismiss stage is no place to test the merits of claims that a wine supplier’s termination of a distribution agreement with a wine distributor.
Cana Distributors, a Michigan based wholesaler…