BAMA BUDWEISER OF MONTOGOMERY, INC. v. Anheuser-Busch, Inc.

783 So. 2d 792, 2000 Ala. LEXIS 419, 2000 WL 641102
CourtSupreme Court of Alabama
DecidedSeptember 29, 2000
Docket1981898
StatusPublished
Cited by8 cases

This text of 783 So. 2d 792 (BAMA BUDWEISER OF MONTOGOMERY, INC. v. Anheuser-Busch, Inc.) is published on Counsel Stack Legal Research, covering Supreme Court of Alabama primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
BAMA BUDWEISER OF MONTOGOMERY, INC. v. Anheuser-Busch, Inc., 783 So. 2d 792, 2000 Ala. LEXIS 419, 2000 WL 641102 (Ala. 2000).

Opinion

783 So.2d 792 (2000)

BAMA BUDWEISER OF MONTGOMERY, INC.
v.
ANHEUSER-BUSCH, INC., et al.

1981898.

Supreme Court of Alabama.

May 19, 2000.
Opinion Overruling Rehearing September 29, 2000.

*793 W. Stanley Gregory and Thomas F. Monk of Thorington & Gregory, Montgomery, for appellant.

Sterling G. Culpepper, Dorman Walker, and Marc Ayers of Balch & Bingham, L.L.P., Montgomery, for appellee Anheuser-Busch, Inc.

Walter R. Byars and B. Saxon Main of Steiner-Crum, Byars & Main, P.C., Montgomery, for appellee Alabama Wholesale Beer Association.

SEE, Justice.

This appeal involves a dispute between a beer wholesaler and a beer manufacturer. The wholesaler, Bama Budweiser of Montgomery, Inc., argues that the trial court erred by construing Act No. 98-286, Ala. Acts 1998, a local act pertaining to Montgomery County, in harmony with the general laws of this State prohibiting a wholesaler from selling outside the exclusive sales territory assigned by the manufacturer, in this case, Anheuser-Busch, Inc. See Ala.Code 1975, § 28-8-8(a)(2); § 28-9-5(2). Bama Budweiser also argues that the trial court erred in allowing the Alabama Wholesale Beer Association (the "Wholesale Association"), of which Bama Budweiser is a member, to intervene in this litigation and assert a position adverse to Bama Budweiser's. Because we hold that the trial court properly construed Act No. 98-286, and that, although the trial court erred in allowing the Wholesale Association to intervene, that error was harmless, we affirm the judgment of the trial court.

I.

In 1984, the Legislature enacted Act No. 84-374, codified at Ala.Code 1975, §§ 28-8-1 through 28-8-8, under the heading "Exclusive Sales Territories and Wholesalers" (hereinafter referred to as the "Territorial Act"). The Territorial Act requires each manufacturer and importer of alcoholic beverages who sells its products through wholesalers to "designate exclusive sales territories for each of its brands sold in Alabama" and to "name one licensed wholesaler for each sales territory who, within such territory, shall be the exclusive wholesaler for said brand or brands." Ala.Code 1975, § 28-8-2. The Territorial Act prohibits a wholesaler from selling to retailers outside its exclusive sales territory, see Ala.Code 1975, § 28-8-8(a)(2), and also prohibits a retailer from buying from any wholesaler other than the wholesaler in whose exclusive sales territory the retailer is located, see § 28-8-8(a)(3). The Territorial Act also requires each wholesaler to "service retail licensees within [the wholesaler's exclusive sales territory] without discrimination." Ala.Code 1975, § 28-8-5.

*794 In 1988, the Legislature enacted Act No. 88-80, Ala. Acts 1988, codified at Ala.Code 1975, §§ 28-9-1 through 28-9-11, under the heading "Business Relations Between Wholesalers and Suppliers of Beer" (hereinafter referred to as the "Franchise Act"). The Franchise Act contemplates that a manufacturer or importer of beer who sells its products through a wholesaler must, with regard to each of its brands, designate exclusive sales territories within each of which only a single wholesaler may sell that brand to licensed retailers. See Ala. Code 1975, § 28-9-4. Like the Territorial Act, see § 28-8-8(a)(2), the Franchise Act prohibits a wholesaler from "sell[ing] or deliver[ing] beer to a retail licensee located outside the sales territory designated to the wholesaler by the supplier of a particular brand or brands of beer." Ala.Code 1975, § 28-9-5(2).

In 1997, a retailer not involved in the present case asked the Alabama Alcoholic Beverage Control Board for its opinion concerning whether some wholesalers had improperly discriminated among retailers in their exclusive sales territories, in violation of § 28-8-5. These wholesalers provided services to chain stores on Saturdays that they refused to provide to independent retailers on Saturdays. The ABC Board concluded that the wholesalers had not engaged in discrimination in violation of § 28-8-5. See ABC Opinion re: Guthrie Enterprises v. Turner Beverage Co.

In April 1998, the Legislature enacted Act No. 98-286, a local act applicable to Montgomery County. It provides: "No... wholesaler ... shall refuse to sell to a... retail[er] ... or to provide a service to a ... retail[er] ..., if the same service is provided to other ... retail[ers]...." 1998 Ala. Acts, Act No. 98-286, § 2. The effective date of that Act was July 1, 1998.

Although manufacturers and importers of beer and other alcoholic beverages are free to designate exclusive sales territories in any configuration they wish, see § 28-8-2 and § 28-9-3, in practice the exclusive sales territories designated by every major beer manufacturer follow county lines, with one exception. That exception is that in June 1989 Anheuser-Bush, Inc., divided Montgomery County into two exclusive sales territories, assigning the northern part of the county, including the City of Montgomery, to Bama Budweiser, and the southern part of the county to Horn Beverage Company.[1]

On June 30, 1998, Anheuser-Busch filed this action against Bama Budweiser and Horn Beverage Company, seeking a judgment declaring that Act No. 98-286 was unconstitutional. Horn Beverage answered, admitting the allegations of the complaint and joining in Anheuser-Busch's prayer for relief. Bama Budweiser, on the other hand, counterclaimed, seeking a declaration that Act No. 98-286 is constitutional and that Bama Budweiser's future sales to Montgomery County retailers outside the exclusive sales territory assigned to it by Anheuser-Busch would not violate its agreement with Anheuser-Busch. The Wholesale Association moved to intervene as a plaintiff, filing a complaint in intervention seeking a declaratory judgment construing Act No. 98-286 in harmony with the Territorial Act and the Franchise Act or, in the alternative, a judgment declaring Act No. 98-286 unconstitutional. Bama Budweiser objected to the Wholesale Association's intervention, but the trial court granted the motion. Wyatt Supermarket, Inc., moved for leave to file a brief as an amicus curiae and filed one in support of Bama Budweiser.

*795 In December 1998, the circuit court heard oral arguments on the three claims for declaratory relief. In June 1999, the court issued an opinion and a final judgment, adopting in that judgment the construction of Act No. 98-286 proposed by the Wholesale Association and declining to rule on the constitutional issues. The circuit court's judgment provided in pertinent part:

"Act 286 does not affect, amend, alter or repeal the exclusive sales territory and prohibited acts provisions contained in the Territorial and Franchise Acts. Specifically, Act 286 does not require or permit wholesalers to sell to retailers outside the wholesaler's designated sales territory, nor permit a retailer to purchase from a wholesaler who has not been designated the territory within which the retailer's place of business is located. These provisions of the Territorial and Franchise Acts remain in full force and effect, unaffected by Act 286, and are binding on all parties to this litigation."

II.

Bama Budweiser appealed. It argues that the circuit court erred in allowing the Wholesale Association to intervene in this litigation because, it argues, the Wholesale Association did not have standing. We agree. It is undisputed that the Wholesale Association does not itself have a protectable interest at stake in this litigation.

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783 So. 2d 792, 2000 Ala. LEXIS 419, 2000 WL 641102, Counsel Stack Legal Research, https://law.counselstack.com/opinion/bama-budweiser-of-montogomery-inc-v-anheuser-busch-inc-ala-2000.