Seagram Distillers Co. v. Jones

548 S.W.2d 667, 1976 Tenn. App. LEXIS 226
CourtCourt of Appeals of Tennessee
DecidedSeptember 3, 1976
StatusPublished
Cited by6 cases

This text of 548 S.W.2d 667 (Seagram Distillers Co. v. Jones) is published on Counsel Stack Legal Research, covering Court of Appeals of Tennessee primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Seagram Distillers Co. v. Jones, 548 S.W.2d 667, 1976 Tenn. App. LEXIS 226 (Tenn. Ct. App. 1976).

Opinion

OPINION

SHRIVER, Judge.

The Case

This is an appeal by the Tennessee Alcoholic Beverage Commission and other named defendants from the action of the Sixth Circuit Court of Davidson County, Tennessee, in granting a motion for summary judgment and entering an order holding that Rule No. 0100-8-13(7) of the Rules of the Tennessee Alcoholic Beverage Commission violates the due process clauses of the Federal and State Constitutions and, hence, is void.

The Pleadings and Proceedings Below

On March 7th, 1975, Seagram Distillers Company filed its “Original Complaint and Petition for Writ of Certiorari” in the Circuit Court of Davidson County, seeking a review of the decision of the Alcoholic Beverage Commission wherein the request of petitioner to transfer its distributorship of certain brands of vodka was denied. The petition also prayed for a declaratory judgment as to the rights of the parties.

Said complaint, in pertinent part, recites that on or about November 1,1974 petitioner requested permission of the respondent Commission to transfer its distributorship of Wolfschmidt Vodka from íipman Bros., Inc., in Nashville, Tennessee to the Tennessee Wine & Spirits Company in Nashville, and from Southern Distributors Corp., in Chattanooga, Tennessee, to Athens Distributing Company of Chattanooga.

It is averred that at its regular monthly meeting on January 10, 1975, held in Nashville, Tennessee, the Commission denied petitioner’s request for the above mentioned transfers of distributorships and it is alleged that said action was erroneous and illegal in that:

(a) It was arbitrary and not supported by material evidence.

(b) The laws of Tennessee do not confer on the Commission power to require its permission for the transfer of a distributorship by a manufacturer from one distributor to another and its rules and regulations which require its permission to make such transfer is an illegal effort to exercise legislative power.

(c) The denial of petitioner’s request violates petitioner’s rights under the Fifth and Fourteenth Amendments to the Federal Constitution and Article 1, Section 8, and Article 11, Section 8, of the Constitution of Tennessee, the same being an unconstitutional interference with the right of petitioner to contract freely.

Under these circumstances it is alleged that petitioner is entitled to have a Court declare its rights in the premises and to have a declaratory judgment to the effect that the action of the respondent Commission is void and, further, that petitioner is entitled to an injunction restraining the Commission from attempting to interfere with petitioner’s right to contract with such persons as it may choose.

[669]*669On April 4, 1975 defendant, Lipman Bros., Inc. filed a motion to dismiss the petition for certiorari and a similar motion was filed by Southern Distributors Corporation.

On September 23, 1975, the Trial Judge held that the petition for certiorari should be dismissed. His Order states:

“The Court is of the opinion that the question raised by the complaint is properly before the Court in accordance with the prayer for a declaratory judgment. The writ of certiorari is unnecessary for consideration of all matters raised. The writ of certiorari is a discretionary writ and should not be issued unless necessary.
It is, therefore, ORDERED that the writ of certiorari is dismissed as improvidently granted. The cause is retained for consideration of a declaratory judgment.
It is further ORDERED that the record before the Commission be retained as evidence for the use of any party.”

The Tennessee Alcoholic Beverage Commission, hereinafter referred to as the Commission, filed its answer on October 22, 1975. Thereafter, Lipman Bros, and Southern Distributors Corp. filed their answers and Lipman Bros, filed interrogatories directed to Seagram Distillers.

On January 2, 1976 Seagram Distillers filed a motion for summary judgment and, on January 5th, filed its answers to the interrogatories.

The motion for summary judgment, pursuant to Rule 56, Tennessee Rules of Civil Procedure, asserts that the ground for such motion is that there is no genuine issue as to any material fact in this cause and that it presents a pure question of law and, further, that petitioner, as a matter of law, is entitled to a judgment to the effect that the action of the Commission in refusing permission to transfer certain wholesale distributorships, as alleged in the complaint, is void as being in excess of the lawful powers of that administrative agency or, alternatively, that such action denies the plaintiff rights guaranteed under the Constitution of the United States and the State of Tennessee.

Certain affidavits were filed in support of the motion and interrogatories and responses thereto were filed.

After a hearing the Court entered the following order:

“Order on Motion for Summary Judgment
This cause came on to be heard upon plaintiff’s motion for summary judgment ‘to the effect that the action of the Alcoholic Beverage Commission in refusing to it permission to transfer certain wholesale distributorships, as alleged in the complaint ... is void as being in excess of the lawful powers of that administrative agency or, alternatively, that such action denied to the plaintiff rights guaranteed under the Constitution of the United States and the State of Tennessee.’
The action involved was taken pursuant to a regulation which was stipulated by all parties to be in these words:
‘(7) Approval Required to Transfer to Another Wholesaler. — No manufacturer, importer or other person shall be permitted to transfer a brand from one wholesale distributor to another without written approval of the Commission. Requests for approval of a transfer must be submitted in writing and a copy of said request must at the same time be sent to the wholesale distributor in whose name the brand is then requested.
After due consideration the Commission shall either approve or disapprove the transfer . .
If it be unclear, the above refers to the marketing of liquor and the word ‘brand’ refers to a particular brand of liquor.
The motion for summary judgment can only be granted if the above quoted regulation, read in conjunction with the statutes relating to liquor, is in violation of a Constitution on its face. The Court is of the opinion that the regulation does violate the due process clauses of both the Federal and State Constitutions.
A careful search of the statutes reveals no provision regulating the relationship [670]*670between manufacturer and wholesaler. Nothing is required of the relationship. No standards for sales, contracts, or dealings are stated.
The motion for summary judgment is granted.

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Cite This Page — Counsel Stack

Bluebook (online)
548 S.W.2d 667, 1976 Tenn. App. LEXIS 226, Counsel Stack Legal Research, https://law.counselstack.com/opinion/seagram-distillers-co-v-jones-tennctapp-1976.