§ 45-51-21.12 — Violations

Alabama § 45-51-21.12

• Jurisdiction: Alabama
• Title 45: Local Laws
• Ch. 51: Montgomery County
• Art. 2: Alcoholic Beverages
• Part 2: Montgomery County Wine Franchise Jobs Protection Act

Text

(a) If a supplier engages in conduct prohibited under this part, a wholesaler with which the supplier has an agreement may maintain a civil action against the supplier to recover actual damages reasonably incurred as the result of the prohibited conduct. If a wholesaler engages in conduct prohibited under this part, a supplier with which the wholesaler has an agreement may maintain a civil action against the wholesaler to recover actual damages reasonably incurred as the result of the prohibited conduct.
(b) A supplier that violates this part shall be liable for all actual damages and all court costs and, in the court’s discretion, reasonable attorney fees incurred by a wholesaler as a result of that violation. A wholesaler that violates this part shall be liable for all actual damages and all court costs and, in the court’s discretion, reasonable attorney fees incurred by the supplier as a result of that violation.
(c) This part imposes upon a supplier the duty to deal fairly and in good faith with a wholesaler which has entered into an agreement with the supplier to purchase and sell a brand or brands of wine sold by the supplier. Except as otherwise provided in this part, if a court finds that a supplier has intentionally, consciously, or deliberately acted or failed to act which was not in good faith or was in bad faith either in (1) effecting an amendment, modification, termination, cancellation, or nonrenewal of any agreement; or (2) unreasonably interfering with, preventing, or unreasonably delaying the transfer of the wholesaler’s business where approval of the proposed transfer- ee is not required by this part; or (3) unreasonably withholding its consent to or approval of any assignment, transfer, or sale of a wholesaler’s business, where approval of the proposed transferee is required by this part; upon proof thereof by clear and convincing evidence as defined in Section 6-11-20, it may award exemplary or punitive damages, as well as actual damages, court costs, and reasonable attorney fees to the wholesaler who has been damaged by the action or the failure to act of the supplier. Such actions or failure to act on the part of the supplier shall constitute the tort of bad faith, and the amount of any award of punitive damages and the review thereof by the trial or appellate court shall be governed by Section 6-11-25.
(d) A supplier or wholesaler may bring an action for declaratory judgment for determination of any controversy arising pursuant to this part.
(e) Upon proper application to the court, a supplier or wholesaler may obtain injunctive relief against any violation of this part. If the court grants injunctive relief or issues a temporary restraining order, bond shall not be required to be posted.
(f) The remedies provided by this section are nonexclusive, and nothing contained herein shall abolish any cause of action or remedy available to the supplier or the wholesaler existing on April 2, 2014.
(g) Any legal action taken under this part, or in a dispute arising out of an agreement or breach thereof, or over the provisions of an agreement shall be filed in either Montgomery County Circuit Court or the United States District Court for the Middle District of Alabama.

Legislative History

(Act 2014-223, p. 731, § 13; Act 2014-263, p. 840, § 13.)