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Judges uphold IATC’s issuance of alcohol dealer permits

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The Indiana Court of Appeals affirmed that an association comprised of retail package liquor stores isn’t entitled to injunctive relief preventing the state’s Alcohol and Tobacco Commission from issuing permits to stores in the same manner it has for the last 30 years.

In Indiana Association of Beverage Retailers, Inc. v. Indiana Alcohol and Tobacco Commission, et al., No.49A02-1002-PL-125, the Indiana Association of Beverage Retailers sued the Indiana Alcohol and Tobacco Commission, seeking to stop what it described as the unlawful practice of issuing excessive permits to dealers in violation of the quota system established by Title 7.1. The IABR claimed the issuance of beer dealer’s permits to holders of liquor dealer’s permits without counting the beer dealer’s permits against the quota limits established in Indiana Code Section 7.1-3-22-4 for those categories of permits violates Indiana law.

The trial court denied IABR’s motion for a temporary restraining order and preliminary injunction. It found there is no clear statutory guidance on the issue. The commission has followed its interpretation that the dealer statutes allow for permits to be issued which bundle together, in different formulations, the rights of different entities to sell different combinations of alcoholic beverages. The IATC has also counted those permits against different quotas in the same manner for many years. The court also found IABR won’t suffer irreparable harm and didn’t have a likelihood of success in a trial on the merits.

The Court of Appeals judges examined the various chapters and sections under Title 7.1 and found Article 3 to be ambiguous regarding the number of permits the commission may issue to dealers. They found reasonable the IATC’s interpretations of Article 3 allowing for three separate quotas to be applied to the various types of holders of dealer’s permits: a quota for those holding a package liquor store dealer’s permit, under which the holder may sell liquor and beer, which is counted only against the quota for package liquor store dealer’s permits; a quota for drug stores holding a liquor dealer’s permit, which is counted only against the quota for general liquor dealer’s permits under I. C. Section 7.1-3-22-4(b), even if they also hold a beer dealer’s permit issued pursuant to I. C. Section 7.1-3-10-6; and a quota for entities holding only a beer dealer’s permit issued pursuant to I. C. Section 7.1-3-22-4(a).  

IABR failed to show it had at least a reasonable likelihood of success on the merits at trial, wrote Judge Carr Darden. The IABR also failed to show that its members are likely to suffer irreparable harm if the injunction isn’t issued.

“Here, the IABR argues that without an injunction, its members’ ‘rights to fairly compete with other holders of lawfully obtained beer dealer’s permits will be harmed and diluted,’” he wrote. “We find no merit in this argument as we have found that the Commission’s interpretation of Section 4 to be reasonable, and therefore its issuance of permits, is lawful. Also, the IABR has presented no evidence that any of its members have been denied permits due to the Commission’s interpretation.”

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  1. I just wanted to point out that Congressman Jim Sensenbrenner, Senator Feinstein, former Senate majority leader Bill Frist, and former attorney general John Ashcroft are responsible for this rubbish. We need to keep a eye on these corrupt, arrogant, and incompetent fools.

  2. Well I guess our politicians have decided to give these idiot federal prosecutors unlimited power. Now if I guy bounces a fifty-dollar check, the U.S. attorney can intentionally wait for twenty-five years or so and have the check swabbed for DNA and file charges. These power hungry federal prosecutors now have unlimited power to mess with people. we can thank Wisconsin's Jim Sensenbrenner and Diane Feinstein, John Achcroft and Bill Frist for this one. Way to go, idiots.

  3. I wonder if the USSR had electronic voting machines that changed the ballot after it was cast? Oh well, at least we have a free media serving as vicious watchdog and exposing all of the rot in the system! (Insert rimshot)

  4. Jose, you are assuming those in power do not wish to be totalitarian. My experience has convinced me otherwise. Constitutionalists are nearly as rare as hens teeth among the powerbrokers "managing" us for The Glorious State. Oh, and your point is dead on, el correcta mundo. Keep the Founders’ (1791 & 1851) vision alive, my friend, even if most all others, and especially the ruling junta, chase only power and money (i.e. mammon)

  5. Hypocrisy in high places, absolute immunity handed out like Halloween treats (it is the stuff of which tyranny is made) and the belief that government agents are above the constitutions and cannot be held responsible for mere citizen is killing, perhaps has killed, The Republic. And yet those same power drunk statists just reel on down the hallway toward bureaucratic fascism.

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