In Re The Beer Institute

849 F.2d 753, 1988 U.S. App. LEXIS 8016
CourtCourt of Appeals for the Second Circuit
DecidedJune 13, 1988
Docket721
StatusPublished
Cited by6 cases

This text of 849 F.2d 753 (In Re The Beer Institute) is published on Counsel Stack Legal Research, covering Court of Appeals for the Second Circuit primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
In Re The Beer Institute, 849 F.2d 753, 1988 U.S. App. LEXIS 8016 (2d Cir. 1988).

Opinion

849 F.2d 753

57 USLW 2010

In re The BEER INSTITUTE (formerly named United States
Brewers Association, Inc.) as an association, and on behalf
of its following members selling beer in the State of
Connecticut and the bordering States of Massachusetts, New
York and Rhode Island:
Anheuser-Busch, Inc., Miller Brewing Company, Latrobe
Brewing Company, Pabst Brewing Company, The Stroh
Brewery Company.
ANHEUSER-BUSCH, INC.; G. Heileman Brewing Company; the
Genesee Brewing Company Inc., Miller Brewing Company; All
Brand Importers, Inc.; Dribeck Importers, Inc.,
Guiness-Harp Corp.; Labatt Importers, Inc., Martlett
Importing Company, Inc.; Monterey Bay Company, Inc.; and
Van Munching Company, Inc., Plaintiffs-Appellants,
v.
John F. HEALY and David L. Snyder, as Commissioners of the
Department of Liquor Control; and Charles Kasmer,
as Secretary of the Department of Liquor
Control, Defendants-Appellees,
Wine and Spirits Wholesalers of Connecticut, Inc., as an
association, and on behalf of its following
members selling alcoholic liquor in the
State of Connecticut:
Johnny Barton, Inc.; the Brescome Distributors Corporation;
Connecticut Distributors, Inc.; Eder Bros., Inc.; Gallo
Wine Merchants Inc.; Allan S. Goodman, Inc.; and Hartley &
Parker Limited, Inc., Intervenors Defendants-Appellees.

No. 721, Docket 87-7880.

United States Court of Appeals,
Second Circuit.

Argued March 18, 1988.
Decided June 13, 1988.

Jeffrey Glekel, New York City (Timothy G. Reynolds, Skadden, Arps, Slate, Meagher & Flom, New York City, William H. Allen, Covington & Burling, Jerome I. Chapman, Arnold & Porter, Gary Nateman, The Beer Institute, Washington, D.C., of counsel), for plaintiffs-appellants.

Robert F. Vacchelli, Asst. Conn. Atty. Gen., Newington, Conn. (Joseph I. Lieberman, Conn. Atty. Gen., Richard M. Sheridan, Asst. Conn. Atty. Gen., of counsel), for defendants-appellees.

William A. Wechsler, Hartford, Conn. (Alfred F. Wechsler, Gregory J. Southworth, Bailey & Wechsler, Hartford, Conn., of counsel), for intervenors defendants-appellees.

Before TIMBERS, PRATT and MINER, Circuit Judges.

MINER, Circuit Judge:

Plaintiffs-appellants The Beer Institute (formerly United States Brewers Association), an industry association of beer brewers and importers, et al., commenced an action in the United States District Court for the District of Connecticut (Dorsey, J.) against defendants-appellees John F. Healy and David L. Snyder, as Commissioners of the Connecticut Department of Liquor Control, and Charles Kasmer, as Secretary of the Department. The complaint asserted that the amended beer price affirmation provisions of the Connecticut Liquor Control Act, 1984 Conn.Acts 332, 432, and Sec. 30-63a(b) of that Act violate the commerce clause, U.S. Const. art. I, Sec. 8, cl. 3, and the supremacy clause, id. art. VI, cl. 2. Plaintiffs sought declaratory and injunctive relief to prevent enforcement of these provisions.

Upon cross-motions for summary judgment, the district court granted judgment for the defendants, holding that the challenged provisions were constitutional. See United States Brewers Ass'n v. Healy, 669 F.Supp. 543 (D.Conn.1987). Plaintiffs appeal from this judgment. Because we find that the amended beer price affirmation provisions place an unconstitutional burden on interstate commerce, we reverse.

BACKGROUND

In United States Brewers Ass'n v. Healy, 692 F.2d 275 (2d Cir.1982) ("Healy I "), aff'd, 464 U.S. 909, 104 S.Ct. 265, 78 L.Ed.2d 248 (1983) (per curiam), we found that the original beer price affirmation provisions of the Connecticut Liquor Control Act placed an unconstitutional burden on interstate commerce. The Act, now as then, requires "posting" of prices, whereby brewers and out-of-state beer importers "file a schedule stating the per-unit price that [they] will charge Connecticut wholesalers for [beer] products in the following month," id. at 276 (footnote omitted); see Conn.Gen.Stat.Ann. Sec. 30-63c (West 1975 & Supp.1988). Posted prices become effective on the first day of the calendar month following the posting. See Conn.Agencies Regs. Sec. 30-6-B12(b). We noted that "[h]istorically the retail price of beer has been generally higher in Connecticut than in its neighboring states, i.e., Massachusetts, New York, and Rhode Island," 692 F.2d at 276.

To encourage Connecticut residents to buy beer in-state rather than in the neighboring states, the legislature added beer price affirmation provisions to the Act. These provisions required that: (1) brewers adhere to the posted prices during the one-month period for which they were posted, Conn.Gen.Stat.Ann. Sec. 30-63(c); (2) brewers file a sworn affirmation that their posted per-unit prices would be no higher than their prices in the border states for the same period, id. Sec. 30-63b(b); (3) Connecticut wholesalers be charged per-unit prices by each brewer no higher than the lowest wholesale price the brewer charges in any border state, id. Sec. 30-63a(b); (4) adjustments for rebates, discounts, allowances and any other inducements offered to out-of-state wholesalers be considered in calculating the "lowest" price, id. Sec. 30-63c(b); and (5) brewers offer to Connecticut wholesalers all the sizes and packages of their brands offered to border state wholesalers, id. Because there are no breweries in Connecticut and all beer is shipped into Connecticut from other states, only out-of-state brewers and importers are affected by the Connecticut price affirmation law.

In striking down the price affirmation provisions as facially invalid, this court observed that they told "a brewer that for any given month when it sells beer to a wholesaler in Massachusetts, New York, or Rhode Island, it may not do so at a price lower than that it has previously announced it will charge to Connecticut wholesalers," Healy I, 692 F.2d at 282. "Thus," we concluded, "the obvious effect of the Connecticut statute is to control the minimum price that may be charged by a non-Connecticut brewer to a non-Connecticut wholesaler in a sale outside of Connecticut," id., in violation of the commerce clause.

Thereafter, the Connecticut Legislature amended the affirmation provisions with the stated purpose of remedying the constitutional problem. Section 30-63b(b) was amended to provide that the "lowest" price charged to border-state wholesalers is determined "at the time of posting," 1984 Conn.Acts 332 ("84-332").1 At the same time, section 30-63b(e)2 was added, providing that Sec. 30-63b did not prohibit brewers from changing prices in other states "at any time during the calendar month covered by such posting." However, Sec. 30-63a(b),3 which prevents brewers from charging Connecticut wholesalers more than their lowest border-state price during the posted period, was not amended. Section 30-63c(b), which establishes how price will be determined under the statute, also was amended by 84-332 to refer to "price ...

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City of New Rochelle v. Town of Mamaroneck
111 F. Supp. 2d 353 (S.D. New York, 2000)
Healy v. Beer Institute
491 U.S. 324 (Supreme Court, 1989)

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Bluebook (online)
849 F.2d 753, 1988 U.S. App. LEXIS 8016, Counsel Stack Legal Research, https://law.counselstack.com/opinion/in-re-the-beer-institute-ca2-1988.