640 P.2d 1351 (Okla. 1982), 57284, Central Liquor Co. v. Oklahoma Alcoholic Beverage Control Bd.

Docket Nº:57284, 57394.
Citation:640 P.2d 1351
Party Name:CENTRAL LIQUOR COMPANY, a partnership composed of Robert Z. Naifeh, Appellee, and Stuart S. Carey, d/b/a Metro Beverage Company, Appellee, v. OKLAHOMA ALCOHOLIC BEVERAGE CONTROL BOARD, composed of Joan Blankenship, Heber Finch, Winston Boydston, Randall Spears and Allen Morain as Members and Richard Crisp as Director of the Alcoholic Beverage Contr
Case Date:February 09, 1982
Court:Supreme Court of Oklahoma
 
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Page 1351

640 P.2d 1351 (Okla. 1982)

CENTRAL LIQUOR COMPANY, a partnership composed of Robert Z.

Naifeh, Appellee,

and

Stuart S. Carey, d/b/a Metro Beverage Company, Appellee,

v.

OKLAHOMA ALCOHOLIC BEVERAGE CONTROL BOARD, composed of Joan

Blankenship, Heber Finch, Winston Boydston, Randall Spears

and Allen Morain as Members and Richard Crisp as Director of

the Alcoholic Beverage Control Board, Appellants,

and

Joseph E. Seagrams and Sons, Inc., an Indiana corporation, Appellant,

and

Heublein, Inc., a corporation, Appellant,

and

Oklahoma Retail Liquor Association, Amicus Curiae,

and

Bacardi Imports, Inc., Amicus Curiae.

Nos. 57284, 57394.

Supreme Court of Oklahoma.

February 9, 1982.

Page 1352

Appeal from the District Court, Oklahoma County; Joe Cannon, Judge.

Appellants appeal the judgment of the trial court which enjoined the implementation of any procedures to determine the ultimate destination of intoxicants shipped to Oklahoma wholesalers and held that non-resident sellers are required to supply Oklahoma wholesalers every alcoholic beverage ordered at the lowest price charged anywhere in the United States, regardless of the destination of the product.

REVERSED.

Jeff L. Hartmann, Oklahoma City, for appellee Central Liquor Co.

Spradling, Alpern, Friot & Gum by Stephen P. Friot, Oklahoma City, for appellee Stuart S. Carey, d/b/a Metro Beverage Co.

Jan Eric Cartwright, Atty. Gen., Michael C. Conaway, and James B. Franks, Asst. Attys. Gen., Deputy Chief, Civ. Div., Oklahoma City, for appellants Oklahoma Alcoholic Beverage Control Board, Etc.

Crowe & Dunlevy by D. Kent Meyers, Oklahoma City, Pillsbury, Madison & Sutro by Parker A. Maddux, San Francisco, Cal., Fuller, Tubb & Pomeroy by Jerry Tubb, Oklahoma City, M. Jacqueline McCurdy, Vice-President-Regulatory Counsel, New York City, for appellant Joseph E. Seagram & Sons, Inc.

Hastie & Kirschner by John W. Swinford, Jr., Oklahoma City, Howrey & Simon by Ralph J. Savarese, Ray A. Jacobsen, Jr. and Mary C. Lyons, Washington, D. C., for appellant Heublein, Inc.

J. W. Doolin, Lawton, for amicus curiae Oklahoma Retail Liquor Assn.

Crowe & Dunlevy by Val R. Miller, Oklahoma City, for amicus curiae Bacardi Imports, Inc.

Page 1353

HODGES, Justice.

The seminal question presented is whether non-resident sellers of intoxicants can be compelled to sell Oklahoma wholesalers substantial quantities of alcoholic beverages for resale in other states at prices controlled by the Oklahoma Statutes.

In 1978, appellees, Central Liquor Company, a partnership comprised of Robert Z. and Franklin Naifeh (Central) and Stuart Carey, d/b/a Metro Beverage Company (Metro), and other licensed wholesalers, began to purchase large quantities of popular brands of liquors from non-resident sellers, including Heublein, Inc. (Heublein), and Joseph E. Seagram & Sons, Inc. (Seagram), appellants, for resale outside the State of Oklahoma. From 1978 until 1980, although the market for intoxicants in Oklahoma has remained constant or increased gradually, total annual sales of wine and liquor increased 51% from 24.7 million to 37.2 million liters. Seventy percent of the increase consisted of products shipped for resale outside the State of Oklahoma. By 1980, 23% of all products sold by licensed Oklahoma liquor wholesalers were resold to wholesalers in other states, principally California, who were not franchised distributors of Heublein and Seagram products. Central received 41 million dollars in 1980 from out-of-state sales, which comprised 76% of all out-of-state sales; and during the last three months of 1980, Metro derived 3.6 million dollars from out-of-state sales. The effect of the "Oklahoma connection" is pellucidly dramatized by the shift in sales of products. The growth of sales through Oklahoma parallels the comparable decline in business by...

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