Super Liquors, Inc. v. Illinois Liquor Control Commission

446 N.E.2d 945, 113 Ill. App. 3d 229, 68 Ill. Dec. 774, 1983 Ill. App. LEXIS 1584
CourtAppellate Court of Illinois
DecidedMarch 10, 1983
Docket82-387
StatusPublished
Cited by7 cases

This text of 446 N.E.2d 945 (Super Liquors, Inc. v. Illinois Liquor Control Commission) is published on Counsel Stack Legal Research, covering Appellate Court of Illinois primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Super Liquors, Inc. v. Illinois Liquor Control Commission, 446 N.E.2d 945, 113 Ill. App. 3d 229, 68 Ill. Dec. 774, 1983 Ill. App. LEXIS 1584 (Ill. Ct. App. 1983).

Opinion

PRESIDING JUSTICE STOUDER

delivered the opinion of the court:

The circuit court of Peoria County granted defendants’, the Illinois Liquor Control Commission et al., motion to strike resulting in the dismissal of the plaintiff’s, Super Liquors, Inc., complaint, which sought declaratory and injunctive relief in connection with the credit restrictions on the sale of beer set forth in section 4 of article VI of the Liquor Control Act (111. Rev. Stat. 1981, ch. 43, par. 122), by reason of alleged violations of due process, equal protection and the antitrust laws.

Section 4 of article VI of the Liquor Control Act (111. Rev. Stat. 1981, ch. 43, par. 122) provides, in pertinent part, that it is unlawful for (1) a manufacturer or distributor of an alcoholic liquor other than beer to extend credit to a retailer other than merchandising credit in the ordinary course of business for a period not in excess of 30 days, (2) a manufacturer or distributor of beer to extend credit to a retailer or, (3) a manufacturer of beer to extend credit to a distributor other than for a period not in excess of 15 days.

The plaintiff, retailer of alcoholic liquor including beer, brought a declaratory judgment action in order to determine whether section 4 of article VI of the Liquor Control Act was violative of the equal protection and due process clauses of the constitutions of the State of Illinois and the United States as well as section 1 of the Sherman Antitrust Act (15 U.S.C. sec. 1 (1976)). The complaint further sought an order enjoining the defendants from enforcing this statute on the basis of its invalidity.

More specifically, the plaintiff alleged that the statute discriminates against retail licensees of beer requiring them to buy beer for cash while permitting retail licensees of alcohol, spirits and wine to purchase such beverages on 30 days credit, that it discriminates against retail licensees of beer by requiring them to purchase beer for cash while permitting distributors of beer to purchase same on credit, that it is violative of due process in that it interferes with the plaintiff’s right to freely contract for credit terms in the purchase of beer and that it fixes the amount of credit available to a retailer of beer, thereby eliminating competition among distributors and manufacturers of beer resulting in a per se violation of section 1 of the Sherman Antitrust Act (15 U.S.C. sec. 1 (1976)).

In response, the defendants moved to strike the complaint. As to the allegations of unconstitutionality, the defendants asserted that the matter had been previously determined in favor of the enactment in Weisberg v. Taylor (1951), 409 Ill. 384, 100 N.E.2d 748, and as to allegations of an antitrust violation, the defendants asserted the defense of State action immunity as established in Parker v. Brown (1943), 317 U.S. 341, 87 L. Ed. 315, 63 S. Ct. 307. The motion to strike was granted and the cause was dismissed.

The plaintiff filed a motion to vacate the judgment asserting that the dismissal of the complaint as a matter of law deprived the plaintiff of an opportunity to present evidence which, if believed, would establish a right to prevail in the action. The plaintiff argued that, as to the constitutional issues, there had been sufficient factual charges since the Weisberg case mandating results different from that rendered in Weisberg. As to the antitrust immunity claim, the plaintiff alleged that section 4 of article VI of the Liquor Control Act did not provide for active supervision of the substantive aspects of that statute and, thus, the defendants were not entitled to antitrust immunity. The motion to vacate was denied.

The issues presented for review are (1) whether the constitutionality of section 4 of article VI of the Liquor Control Act (111. Rev. Stat. 1981, ch. 43, par. 122) was a proper subject for a motion to strike in view of the fact that the plaintiff was precluded from presenting evidence as to the inapplicability of Weisberg v. Taylor (1951), 409 Ill. 384, 100 N.E.2d 748 and (2) whether the granting of a motion to strike with reference to the claimed antitrust violation was error in that the plaintiff was precluded from presenting evidence to show that section 4 of article VI of the Liquor Control Act (111. Rev. Stat. 1981, ch. 43, par. 122) failed to fall within the State action immunity doctrine.

The Illinois Supreme Court in Weisberg v. Taylor (1951), 409 Ill. 384, 100 N.E.2d 748, has decided the constitutionality of section 4 of article VI of the Liquor Control Act. In Weisberg, a retail liquor dealer and a wholesale beer distributor filed suit against the Illinois Liquor Control Commission seeking a declaratory judgment that section 4 of article VI of the Liquor Control Act (Ill. Rev. Stat. 1949, ch. 43, par. 122) was unconstitutional. A motion to dismiss the suit filed by the Attorney General on behalf of the Liquor Control Commission was allowed.

The plaintiff in Weisberg contended, among other things, that section 4 of article VI of the Liquor Control Act was violative of the fourteenth amendment to the Constitution of the United States for the reason that its provisions were arbitrary, unreasonable, confiscatory and did not involve or bear any relationship to the health, safety or welfare of the people; that it was an improper exercise of police power; that it created an arbitrary and discriminatory classification and that it discriminated against retail licensees in requiring them to buy beer for cash while permitting distributors to purchase the same on credit.

The supreme court, in upholding the trial court’s dismissal, stated that the statute’s credit restrictions were apparently designed by the State legislature to control temperance and, therefore, were conductive to the public welfare, even though the court doubted the statute would accomplish its intended result. In addition the court found the classifications created by the statute were reasonable and not discriminatory, relating the historical evils of “tied houses” to localized breweries more so than to nationwide distilleries and finding that the application of the statute fell equally upon all members of distinct and separate classes, that of retailers and that of distributors.

Where the supreme court has declared the law on any point, it alone can overrule or modify its previous opinion, the lower judicial tribunal being bound to follow such decision in similar cases. (Agriculture Transportation Association v. Carpentier (1953), 2 Ill. 2d 19, 116 N.E.2d 863.) In the case at hand we believe that the issue of constitutionality decided by the trial court in allowing the defendants’ motion to strike are identical to those decided in the Weisberg case. We are therefore bound to follow the Weisberg decision and uphold the trial court’s allowance of the defendants’ motion to strike and subsequent dismissal of this case.

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Bluebook (online)
446 N.E.2d 945, 113 Ill. App. 3d 229, 68 Ill. Dec. 774, 1983 Ill. App. LEXIS 1584, Counsel Stack Legal Research, https://law.counselstack.com/opinion/super-liquors-inc-v-illinois-liquor-control-commission-illappct-1983.