Clackamas Grocery Outlet Warehouse v. Oregon Liquor Control Commission

283 P.3d 936, 251 Or. App. 329, 2012 WL 3055568, 2012 Ore. App. LEXIS 935
CourtCourt of Appeals of Oregon
DecidedJuly 25, 2012
DocketOLCC08M001, OLCC08L011; A145881, A145882
StatusPublished

This text of 283 P.3d 936 (Clackamas Grocery Outlet Warehouse v. Oregon Liquor Control Commission) is published on Counsel Stack Legal Research, covering Court of Appeals of Oregon primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Clackamas Grocery Outlet Warehouse v. Oregon Liquor Control Commission, 283 P.3d 936, 251 Or. App. 329, 2012 WL 3055568, 2012 Ore. App. LEXIS 935 (Or. Ct. App. 2012).

Opinion

ARMSTRONG, P. J.

Petitioners, Clackamas Grocery Outlet Warehouse and Grocery Outlet, Inc., (GOI),1 seekjudicial review of a final order of the Oregon Liquor Control Commission (OLCC), in which the OLCC determined that GOI’s business practice of receiving and storing wine at its Clackamas warehouse and delivering it to GOI retail stores throughout Oregon for sale to the public was not permitted.2 The order also granted GOI an “off-premises sales license” (O license), see ORS 471.186, for its Clackamas facility, subject to certain restrictions consistent with that determination — that is, the O license specifically allows the sale of alcoholic beverages “only at retail directly to the consumer for off-premises consumption” and “does not authorize activities associated with the wholesale sale and distribution of alcoholic beverages to other licensed premises.” GOI petitions for judicial review of the OLCC’s order. For the reasons stated below, we affirm.

I. STATUTORY FRAMEWORK

To give necessary context to this dispute, we begin with a discussion of the statutory scheme established by the Liquor Control Act (the Act), ORS chapter 471; ORS 474.105; ORS 474.115; see ORS 471.027, and, in particular, the applicable licensing provisions.3 The OLCC is authorized by the legislature “[t]o control the manufacture, possession, sale, purchase, transportation, importation and delivery of alcoholic liquor in accordance with [the Act].” ORS 471.730(1). It has the power and duty “[t]o grant, refuse, suspend, or cancel licenses and permits for the sale or manufacture of alcoholic liquor, or other licenses and permits in regard thereto[.]” ORS 471.730(2).

[332]*332A person who is not licensed under the Act may not “sell, solicit, take orders for or peddle alcoholic beverages.” ORS 471.405(3). Moreover, “[n]o licensee shall sell or offer for sale any alcoholic beverage in a manner, or to a person, other than the license permits the licensee to sell.” ORS 471.405(1). Significantly, under ORS 471.406:

“Any prohibition on the sale of alcoholic beverages provided for in this chapter includes:
“(1) Soliciting orders for alcoholic beverages or receiving orders for alcoholic beverages.
“(2) Keeping alcoholic beverages for sale or exposing alcoholic beverages for sale.
“(3) Delivering alcoholic beverages for value or in any way other than purely gratuitously.
“(4) Peddling alcoholic beverages.
“(5) Keeping alcoholic beverages with intent to sell.
“(6) Trafficking in alcoholic beverages.
“(7) For any consideration, promised or obtained, directly or indirectly or under any pretext or by any means, procuring alcoholic beverages, or allowing alcoholic beverages to be procured, for any other person.”

The Act authorizes various types of licenses, two of which are most pertinent to the issues raised in this case: (1) the “off-premises sales license,” which, as noted, is referred to as an “O license,” ORS 471.186; and (2) the “wholesale malt beverage and wine license,” ORS 471.235. As discussed below, 251 Or App at 335, 338, GOI holds an O license (jointly with the store operator) for each individual GOI retail store and, as of October 2008, also has an O license for its Clackamas warehouse. GOI does not have, and never has had, a wholesale malt beverage and wine license.

ORS 471.186 establishes the O license. Subsection (1) of that statute provides, in part:

“The holder of an off-premises sales license may sell factory-sealed containers of wine, malt beverages and cider.”4

[333]*333The holder of an O license may also provide “sample tastings” on the licensed premises with the approval of the OLCC, ORS 471.186(2), and “may deliver wine or cider that is sold under the privileges of the license to retail customers in this state” as long as — among other restrictions — such deliveries are “made only for personal use and not for the purpose of resale,” ORS 471.186(5), (5)(b). In addition, ORS 471.305 provides that “[t]he sale of alcoholic liquors under any license issued by the [OLCC] authorizing retail sales by a licensee shall be restricted to the premises described in the license, but deliveries may be made by the licensee to customers pursuant to bona fide orders received on the licensed premises prior to delivery.” “Premises” or “licensed premises” is defined to mean

“a location licensed under [chapter 471] and includes all enclosed areas at the location that are used in the business operated at the location, including offices, kitchens, rest rooms and storerooms, including all public and private areas where patrons are permitted to be present. ‘Premises’ or ‘licensed premises’ include areas outside of a building that the commission has specifically designated as approved for alcoholic beverage service or consumption.”

ORS 471.001(10).

Wholesale malt beverage and wine licenses are governed by ORS 471.235. That license allows, among other activities, “the importation, storage, transportation, wholesale sale and distribution to licensees of the [OLCC].” ORS 471.235(1). The licensee “may not sell any alcoholic liquor for consumption upon the licensed premises.” Id.

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Related

Ban v. Oregon Liquor Control Commission
102 P.3d 744 (Court of Appeals of Oregon, 2004)

Cite This Page — Counsel Stack

Bluebook (online)
283 P.3d 936, 251 Or. App. 329, 2012 WL 3055568, 2012 Ore. App. LEXIS 935, Counsel Stack Legal Research, https://law.counselstack.com/opinion/clackamas-grocery-outlet-warehouse-v-oregon-liquor-control-commission-orctapp-2012.