S & S Liquor Mart, Inc. v. Pastore

497 A.2d 729, 54 U.S.L.W. 2157, 12 Media L. Rep. (BNA) 1236, 1985 R.I. LEXIS 585
Supreme Court of Rhode Island·Decided August 26, 1985·No. 82-347-Appeal·Published·Cited by 14 cases

Opinions

OPINION

KELLEHER, Justice.

This appeal was brought by S & S Liquor Mart, Inc. (S & S Liquor), to review a decision of a Superior Court justice denying and dismissing its action for declaratory and injunctive relief. As its name suggests, S & S Liquor is a retail alcoholic-beverage dealer. A class-A liquor licensee, S & S Liquor is a Rhode Island corporation with its principal place of business located on Granite Street in the town of Westerly, Rhode Island, which town borders the state of Connecticut. The defendant is Louis Pastore (Pastore) in his capacity as liquor-control administrator for the State of Rhode Island.1

[731] The facts of this case are not in dispute, On January 1, 1982, the State of Conneeti-cut, through P.A. 81-294, repealed its statutes that had established minimum markups on liquor sales. According to S & S Liquor, the removal of these minimum-pricing requirements resulted in the immediate advertising of prices of alcoholic beverages by Connecticut retail alcoholic-beverage dealers;2 these advertisements appeared both in the New London Day, a newspaper published in New London, Connecticut, and circulated in Connecticut and Westerly, and the Westerly Sun, a newspaper located in Westerly and circulated both in Westerly and in Connecticut.

Matthew J. Serra, the president of S & S Liquor, then contacted Pastore and advised him that he would like to advertise prices of S & S Liquor’s alcoholic beverages, at least in Connecticut newspapers. Pastore responded by informing Serra that his license would be suspended if he advertised prices of alcoholic beverages in any publications, either in Rhode Island or in Connecticut. Following receipt of this commu-niqué from Pastore, S & S Liquor instituted an action challenging the constitutionality of G.L.1956 (1976 Reenactment) § 3-8-7,3 the statute that, among other things, prohibits Rhode Island retail liquor licensees from advertising the prices of alcoholic beverages. S & S Liquor sought to have the statute declared invalid as a violation of the First and Fourteenth Amendments, the commerce clause, and the Sherman AntiTrust Act. The trial justice was not persuaded, and this appeal ensued.

Jt js befitting, before undertaking our analysis of the issues in this appeal, to shed some light on the controversy relating to the impact of the Twenty-first Amendment upon the states’ authority to regulate alcoholic beverages under their traditional police power standing alone.4 The trial justice, in his decision denying all relief to plaintiff, stated that the Twenty-first Amendment “grants the states virtually complete control over whether to permit importation or sale of liquor and how to structure the liquor distribution system.” S & S Liquor concedes that this statement by the trial justice is supported by California Retail Liquor Dealers Ass’n v. Midcal Aluminum, Inc., 445 U.S. 97, 110, 100 S.Ct. 937, 946, 63 L.Ed.2d 233, 246 (1980), but then asserts, vigorously, that the court misapplied the Twenty-first Amendment to the facts of this case because of its failure to consider other constitutional rights and provisions.

For many, enactment of the Twenty-first Amendment occurred so long before their respective births that the circumstances that occasioned it are an obscure part of history to which they may have difficulty [732] relating. Succinctly, the Twenty-first Amendment was as much a reaction to the failure of prohibition as prohibition was to the problems of excessive alcohol consumption.

Section 1 of the Twenty-first Amendment repealed the Eighteenth Amendment’s prohibition of the manufacture, sale, or transportation of liquor. Section 2 of the Twenty-first Amendment states:

“The transportation or importation into any state, territory, or possession of the United States for delivery or use therein of intoxicating liquors, in violation of the laws thereof, is hereby prohibited.”

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S & S Liquor Mart, Inc. v. Pastore, 497 A.2d 729, 54 U.S.L.W. 2157, 12 Media L. Rep. (BNA) 1236, 1985 R.I. LEXIS 585 (R.I. 1985).

497 A.2d 729 (S & S Liquor Mart, Inc. v. Pastore) — published by Counsel Stack Legal Research, free access to 12M+ legal documents.

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S & S Liquor Mart, Inc. v. Pastore
497 A.2d 729 (Supreme Court of Rhode Island, 1985)