Indiana Ass'n of Beverage Retailers, Inc. v. Indiana Alcohol & Tobacco Commission

945 N.E.2d 187, 2011 Ind. App. LEXIS 355, 2011 WL 743052
CourtIndiana Court of Appeals
DecidedMarch 3, 2011
Docket49A02-1002-PL-125
StatusPublished
Cited by3 cases

This text of 945 N.E.2d 187 (Indiana Ass'n of Beverage Retailers, Inc. v. Indiana Alcohol & Tobacco Commission) 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 Ass'n of Beverage Retailers, Inc. v. Indiana Alcohol & Tobacco Commission, 945 N.E.2d 187, 2011 Ind. App. LEXIS 355, 2011 WL 743052 (Ind. Ct. App. 2011).

Opinion

OPINION

DARDEN, Judge.

STATEMENT OF THE CASE

The Indiana Association of Beverage Retailers, Inc. (the “IABR”) appeals the trial court’s denial of its motion for a preliminary injunction against the Indiana Alcohol and Tobacco Commission (the “Commission”).

We affirm. 1

ISSUE

Whether the trial court abused its discretion in denying the IABR’s motion for a preliminary injunction.

FACTS

The General Assembly created the Commission to administer Title 7.1 of the Indiana Code, the purpose of which is to, among other things, “regulate and limit the manufacture, sale, possession, and use of alcohol and alcoholic beverages” in or *191 der to “protect the economic welfare, health, peace, and morals of the people” of Indiana. Ind.Code § 7.1-1-1-1 (as added by Acts 1973, P.L. 55, § 1). As such, the Commission “may issue only the types of permits authorized by [Article 3] subject to the applicable provisions of’ Title 7.1. I.C. § 7.1-3-1-1. Article 3 promulgates the rules regarding the application for, and issuance of, alcohol permits.

Specifically, Article 3 provides for the issuance of permits to dealers, meaning those who desire to sell alcohol to customers for consumption off of the dealers’ premises. Thus, the Commission may “issue a beer dealer’s permit to a person who desires to sell beer to customers for consumption only off the license’s premises,” 1.C. § 7.1-3-5-1, but only if the applicant “is the proprietor of a drug store, grocery store, or package liquor store.” 2 I.C. § 7.1-3-5-2(a).

The Commission also may issue a liquor dealer’s permit for the sale of liquor to be consumed offsite, see I.C. § 7.1-3-10-1, to “the proprietor of a drug store who holds a license issued by the state board of pharmacy,” I.C. § 7.1-3-10-2, or “to the proprietor of a package liquor store.” 3 I.C. § 7.1-3-HM.

Pursuant to Indiana Code section 7.1-3-10-6, the Commission may also, “upon proper application and the payment of the required license fee, issue a beer dealer’s permit to the holder of a liquor dealer’s permit.” Under this section, “applications for both of the permits may be made at the same time,” and the provisions of Chapter 5 of Article 3 “shall apply to the issuance and enjoyment of a beer dealer’s permit issued under the provisions of this section.” I.C. § 7.1-3-10-6. Chapter 5 addresses the issuance of beer dealer’s permits in general but does not address quotas for such permits.

Chapter 22 of Article 3, however, does address quotas. Specifically, it limits the number of beer and liquor permits the Commission may grant to dealers. Indiana Code section 7.1-3-22-4 4 provides, in relevant part, as follows:

(a) The commission may grant:
(1) in an incorporated city or town that has a population of less than fifteen thousand one (15,001):
(A) one (1) beer dealer’s permit for each two thousand (2,000) persons, or a fraction thereof; or
(B) two (2) beer dealer’s permits; whichever is greater, within the incorporated city or town;
(2) in an incorporated city or town that has a population of more than fifteen thousand (15,000) but less than eighty thousand (80,000):
(A) one (1) beer dealer’s permit for each three thousand five hundred (3,500) persons, or a fraction thereof; or
*192 (B) eight (8) beer dealer’s permits; whichever is greater, within the incorporated city or town; and
(3) in an incorporated city or town that has a population of at least eighty thousand (80,000):
(A) one (1) beer dealer’s permit for each six thousand (6,000) persons, or a fraction thereof; or
(B) twenty-three (23) beer dealer’s permits; whichever is greater, within the incorporated city or town.
(b) The commission may grant:
(1) in an incorporated city or town that has a population of less than fifteen thousand one (15,001):
(A) one (1) liquor dealer’s permit for each two thousand (2,000) persons, or a fraction thereof; or
(B) two (2) liquor dealer’s permits; whichever is greater, within the incorporated city or town;
(2) in an incorporated city or town that has a population of more than fifteen thousand (15,000) but less than eighty thousand (80,000):
(A) one (1) liquor dealer’s permit for each three thousand five hundred (3,500) persons, or a fraction thereof; or
(B) eight (8) liquor dealer’s permits; whichever is greater, within the incorporated city or town; and
(3) in an incorporated city or town that has a population of at least eighty thousand (80,000):
(A) one (1) liquor dealer’s permit for each six thousand (6,000) persons, or a fraction thereof; or
(B) twenty-three (23) liquor dealer’s permits; whichever is greater, within the incorporated city or town.
(c) The commission may grant in an area in the county outside- an incorporated city or town:
(1) one (1) beer dealer’s permit for each two thousand five hundred (2,500) persons, or a fraction thereof, or two (2) beer dealer’s permits, whichever is greater; and
(2) one (1) liquor dealer’s permits for each two thousand five hundi-ed (2,500) persons, or a fraction thereof, or two (2) liquor dealer’s permits, whichever is greater;
within the area in a county outside an incorporated city or town.

Regarding package liquor store dealer’s permits, Indiana Code section 7.1-3-22-5 provides, in part, as follows:

(a) The commission may issue only one (1) package liquor store dealer’s permit in an incorporated city or town for each eight thousand (8,000) persons, or fraction thereof, within the incorporated city or town.

On January 14, 2010, the IABR, a nonprofit association whose membership is comprised of retail package liquor stores, filed a complaint in Marion Superior Court against the Commission, seeking a declaratory judgment and injunctive relief. The IABR asserted that subsequent to the amendment of Indiana Code section 7.1-3-22-4 in 2008, “the number of permits available per capita” decreased. (App.12).

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945 N.E.2d 187, 2011 Ind. App. LEXIS 355, 2011 WL 743052, Counsel Stack Legal Research, https://law.counselstack.com/opinion/indiana-assn-of-beverage-retailers-inc-v-indiana-alcohol-tobacco-indctapp-2011.