Reimel v. Alcoholic Beverage Control Appeals Board

256 Cal. App. 2d 158, 64 Cal. Rptr. 26, 1967 Cal. App. LEXIS 1839
California Court of Appeal·Decided November 21, 1967·No. Civ. 22905·Published·Cited by 13 cases

Opinion

ELKINGTON, J.

J. — These consolidated appeals primarily concern the interpretation of Business and Professions Code 1 section 24755 as amended in 1961 which relates to minimum retail price schedules for branded distilled spirits. The section is part of the Alcoholic Beverage Control Act (§§ 23000-25762) which herein will be called the Act.

The individual respondents and real parties in interest were holders of off-sale general liquor licenses issued by the Department of Alcoholic Beverage Control (hereinafter called Department). Against each respondent licensee the Department filed an accusation alleging the sale of branded distilled spirits at prices less than the stipulated minimum retail schedules duly filed with the Department. After hearings the Department found the charges to be true. As to some of respondent licensees, license suspension was ordered; as to the others the sanction was license revocation.

Appeals in each case were taken to the Alcoholic Beverage Control Appeals Board (hereinafter called Appeals Board). The Appeals Board reversed the several decisions of the Department. It held in each case that the record did not establish publication as required by section 24755; therefore the evidence did not support the Department’s findings that the licensees sold at prices “below the minimum retail price schedule duly filed. ’ ’

The Department thereupon filed in the superior court applications for mandate (Code Civ. Proe., §1094.5) seeking reversal of the decisions of the Appeals Board. The superior court, after hearings, entered judgment in each case denying the prayed for relief. Each of the judgments recited: “The *164 foregoing judgment is rendered by this Court upon the grounds that, as determined by the Appeals Board in its decision, the record does not contain substantial evidence that the petitioner sustained its burden of proving publication of the price schedule in the manner required by section 24755 of the Business and Professions Code. ’ ’

It is from these judgments that the instant appeals were taken.

As pertinent here section 24755 provided:

“(a) No package of distilled spirits which bears the brand, trademark or name of the owner or person in control shall be sold at retail in this State for consumption off the license premises unless a minimum retail price for such package first shall have been filed with the department in accordance with the provisions of this section.
“(b) A price for each of such packages shall be in a minimum retail price schedule setting forth with respect to each package the exact brand, trademark or name, capacity, and type of package, type of distilled spirits, age and proof, where stated on the label, and the minimum selling price at retail. . . . Any person filing such schedule shall cause such schedule to be published in a manner which will result in each retailer affected by such schedule being advised of the contents of such schedule prior to the effective date thereof.
“(c) Such schedule shall be filed by (1) the owner of the brand [or any of certain other designated persons], . . .
“(e) No offsale licensee shall sell any package of distilled spirits at any price less than the effective filed price of such package. . . .’’ 2 (Italics added.)

Under the authority of section 24757 3 the Department adopted its rule 99 (k) (tit. IV, Cal. Adm. Code) which as pertinent here states: ‘1 (k) Publication. The person filing minimum retail price schedules shall cause prices for all items on every original price schedule and for every change of price or new price on every replacement price schedule to be published in a trade journal of general circulation in the trading areas affected on or before the effective date thereof. . . .” (Italics added.)

*165 It seems proper at this point before discussing the respective contentions of the parties to consider certain fundamental principles relating to the enforcement of the Act.

Our Supreme Court in Allied Properties v. Department of Alcoholic Beverage Control, 53 Cal.2d 141, 147 [346 P.2d 737], has said, “A state has particularly wide powers with respect to the . . . traffic in alcoholic beverages and may provide for their prohibition or impose such conditions and regulations as it may deem proper. ’ ’

This court in State Board of Equalization v. Superior Court, 5 Cal.App.2d 374, 377 [42 P.2d 1076], stated: “Unlike the rule with respect to the right to deal in ordinary commodities . . . there is no inherent right in a citizen to sell intoxicants [citations] ; and a license to do so is not a proprietary right within the meaning of the due process clause of the Constitution ([Cal.] Const., art. I, § 13), nor is it a contract [citation]; it is but a permit to do what would otherwise be unlawful. ...” (See also Kirchhubel v. Munro, 149 Cal.App.2d 243, 247-248 [308 P.2d 432]; Schaub’s Inc. v. Department of Alcoholic Beverage Control, 153 Cal.App.2d 858, 869-870 [315 P.2d 459].)

Section 24755 does not require as an element of its violation that a sale, below the effective minimum retail price schedule be made knowingly. A strict liability is imposed on those exercising the privilege of selling alcoholic beverages. (See DeMartini v. Department of Alcoholic Beverage Control, 215 Cal.App.2d 787, 815 [30 Cal.Rptr. 668] ; Morell v. Department of Alcoholic Beverage Control, 204 Cal.App.2d 504, 513 [22 Cal.Rptr. 405]; Munro v. Alcoholic Beverage Control Appeals Board, 154 Cal.App.2d 326, 329 [316 P.2d 401]; Mercurio v. Department of Alcoholic Beverage Control, 144 Cal.App.2d 626, 630-631 [301 P.2d474].)

The duty to enforce and administer the Act is vested in the Department, and “it has been given a broad range of power and discretion in carrying out this duty, ...” (Harris v. Alcoholic Beverage Control Appeals Board, 238 Cal. App.2d 24, 30 [47 Cal.Rptr. 424].)

We shall state the several contentions on these appeals as they are outlined by respondents.

The first and principal contention of respondents 4 may be stated as: The record discloses that the Department did not *166 sustain its burden of proving publication of the minimum retail price schedules as required by section 24755.

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Reimel v. Alcoholic Beverage Control Appeals Board, 256 Cal. App. 2d 158, 64 Cal. Rptr. 26, 1967 Cal. App. LEXIS 1839 (Cal. Ct. App. 1967).

256 Cal. App. 2d 158 (Reimel v. Alcoholic Beverage Control Appeals Board) — published by Counsel Stack Legal Research, free access to 12M+ legal documents.

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