Indiana Alcoholic Beverage Commission v. McShane

354 N.E.2d 259, 170 Ind. App. 586, 1976 Ind. App. LEXIS 1034
CourtIndiana Court of Appeals
DecidedSeptember 9, 1976
Docket2-276A76
StatusPublished
Cited by35 cases

This text of 354 N.E.2d 259 (Indiana Alcoholic Beverage Commission v. McShane) is published on Counsel Stack Legal Research, covering Indiana Court of Appeals primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Indiana Alcoholic Beverage Commission v. McShane, 354 N.E.2d 259, 170 Ind. App. 586, 1976 Ind. App. LEXIS 1034 (Ind. Ct. App. 1976).

Opinion

Case Summary

Buchanan, P.J.

— Defendants-Appellants, Indiana Alcoholic Beverage Commission and James D. Sims, Morris Tobian, Austin E. Barker, and William H. Warren as Members of the Indiana Alcoholic Beverage Commission (the ABC), appeal a permanent injunction in favor of Plaintiffs-Appellees, Thomas J. McShane, Gerald L. McKeand, Herbert A. Miller, and Robert B. Lynch, Jr. (McShane), mandating the ABC to effectively enforce its present rules and regulations preventing the advertising- of alcoholic beverage prices and the gift or sale of alcoholic beverages by wholesalers to retail permittees free of cost or at prices below the invoice prices customarily charged, until such practices are allowed by law and enacted by the Indiana General Assembly. The ABC claims reversible error in that the trial court lacked subject matter jurisdiction due to failure to exhaust administrative remedies and lack of standing by McShane, erroneous Findings and Conclusions and wrongful invasion by the trial court of the statutory discretion of the ABC.

We reverse and remand.

FACTS

The facts and evidence consisting of the proceedings before the ABC and the trial court are essentially undisputed:

On September 18, 1975, the ABC resolved to reevaluate certain of its rules and regulations. It was moved and passed that “. . . the Commission take all proper steps to research and commence the de-promulgation of those regulations which *588 they interpret to be those regulations which are in conflict with price advertising as the [sic] tend to depress a basic free enterprise system.”

On October 7, 1975, the ABC formally resolved “. . . that the Executive Secretary execute all necessary steps to start the process, of repealing Regulation 4, Rule 6 and 18; Regulation 6, 7, 10, 12, 17, 19, 26, 28, 32 and 40.” (See Special Findings of Fact, infra.) A public hearing was subsequently set for October 28, 1975 and notice was published pursuant to IC § 4-22-2-4.

On October 27, 1975, McShane obtained a temporary restraining order against the ABC and its members in Marion County Superior Court, Room No. 1, prohibiting the public hearing scheduled for the next day. The restraining order was later dissolved and trial was held on McShane’s “Amended Complaint for Injunction.”

On December 19, 1975, the trial court entered its “Findings and Judgment,” as follows:

SPECIAL FINDINGS OF FACT
1. That the Plaintiff, Thomas J. McShane, is the holder of a beer, wine and liquor retailer’s permit issued to restaurants; the plaintiff, Gerald L. McKeand, is the holder of a beer, wine and liquor dealer’s permit issued to drug stores; and, the plaintiff, Herbert A. Miller, is the holder of a beer, wine and liquor dealer’s permit issued to package stores; each such permit issued by the defendant, Indiana Alcoholic Beverage Commission.
2. That the Defendant Indiana Alcoholic Beverage Commission is a legal entity having certain powers and duties under and pursuant to Public Law No. 55, Acts 1973, and subsequent amendments thereto, and the Defendants, James D. Sims, Morris Tobian, Austin E. Barker and William H. Warren, are members of said Commission and were made party Defendants herein as. such members.
3. The said Defendant Commission has heretofore adopted and there are presently in force its certain Regulation 4, Rules 6, 15 and 18, and Regulation 5, Section 3, which provide as follows
*589 Burns’ Adm. Rules and Regulations, (12-641 )-6
Reg. 4, Rule 6. Signs advertising price prohibited. — No holder of a permit to sell at retail alcoholic beverages shall display, or permit to be displayed upon the windows or any part of the licensed premises where it may be visible from the exterior any sign which advertises the price of alcoholic beverages, or the size of containers, glasses or mugs in which such alcoholic beverages are offered for sale.
Burns’ Adm. Rules and Regulations (12-641)-15
Reg. 4, Rule 15. NEWSPAPER ADVERTISING.— Manufacturers, wholesalers and salesmen of alcoholic beverages, or the agent or representative thereof, may advertise alcoholic beverages by brand name or brand names, or the place where the same may be obtained at wholesale, in any newspaper or magazine which circulates generally to the public and which has a regular net paid subscription list.
Holders of permits to sell at retail alcoholic beverages may advertise alcoholic beverages by brand name or brand names, or the place where the same may be obtained at retail, in any newspaper or magazine which circulates generally to the public and which has been published at regular monthly intervals or oftener for two consecutive years subsequent to December 31,1943.
Such advertisements shall not promote gambling, games of chance or contain offers of financial awards as inducements to purchase the alcoholic beverages advertised.
Such advertisements shall not refer, directly or indirectly, to the alcoholic content of alcoholic malt beverages.
Such advertisements shall not refer, directly or indirectly, to the alcoholic content of alcoholic malt beverages.
Such advertisements shall conform to the approved label upon the immediate container of the alcoholic beverages so advertised.
No manufacturer, wholesaler or salesman of alcoholic beverages, or the agent or representative thereof, shall pay in whole or in part for any advertisement, advertising any premises covered by a permit to sell at retail alcoholic beverages.
Burns’ Adm. Rules and Regulations (12-641 )-18
Reg. 4, Rule 18- Price advertising. — Prices of any alcoholic beverages may be advertised by its brand name in such media as herein permitted providing said brand of *590 beverage is offered for sale under a fair trade contract on file with the Indiana alcoholic beverage commission.
Burns’ Adm. Rules and Regulations (12-636)-3
Reg. 5, Section 3. FREE BEVERAGES PROHIBITED. —No manufacturer, wholesaler or salesman shall give the holder of a permit to sell at retail alcoholic beverages, nor the employees of such retailers, any alcoholic beverage free of cost, nor shall they sell alcoholic beverages to such permittee, or his employees, below the invoice price customarily charged for such alcoholic beverages.
No holder of a permit to sell at retail alcoholic beverages, nor the employees of such permittees, shall accept, free of cost, alcoholic beverages nor shall they purchase alcoholic beverages at a price below that customarily charged for such alcoholic beverages, from any manufacturer, wholesaler or salesman of alcoholic beverages.

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Bluebook (online)
354 N.E.2d 259, 170 Ind. App. 586, 1976 Ind. App. LEXIS 1034, Counsel Stack Legal Research, https://law.counselstack.com/opinion/indiana-alcoholic-beverage-commission-v-mcshane-indctapp-1976.