Club v. Liquor Control Comm'n, 495.

• Decision Date: 25 November 1942
• Docket Number: No. 495.,495.
• Citation: 303 Mich. 444,6 N.W.2d 740
• Parties: DETROIT ATHLETIC CLUB v. LIQUOR CONTROL COMMISSION et al.
• Court: Michigan Supreme Court

303 Mich. 444

6 N.W.2d 740

DETROIT ATHLETIC CLUB

v.LIQUOR CONTROL COMMISSION et al.

No. 495.

Supreme Court of Michigan.

Nov. 25, 1942.

Original mandamus proceeding by the Detroit Athletic Club, a Michigan corporation, against the Liquor Control Commission of the State of Michigan, composed of Ralph Thomas, chairman, James Dotsch, member, Felix Flynn, member, Hon. Murray D. Van Wagoner, governor of the state of Michigan, ex-officio member, Hon. Harry F. Kelly, secretary of the state of Michigan, ex-officio member, to compel respondents to allow petitioners 15 per cent discount on purchases of alcoholic liquors from the Commission. On order to show cause.

Writ issued.

BUSHNELL, J., and CHANDLER, C. J., dissenting.

Before the Entire Bench.

David H. Crowley and George A. Kelly, both of Detroit, (Walter E. Kelly, of Detroit, of counsel), for petitioner.

Charles P. Van Note, Special Counsel for Liquor Control Commission, of Lansing, Herbert J. Rushton, Atty. Gen. of Michigan, Edmund E. Shepherd, Sol. Gen., and Theron W. Atwood, Asst. Att. Gen., for respondents.

BOYLES, Justice.

Plaintiff was granted leave to file petition for peremptory writ of mandamus to compel the liquor control commission to allow the petitioner 15 per cent discount on purchases of alcoholic liquors from the commission. Order to show cause was issued, and the cause submitted on record and briefs.

Plaintiff is a Michigan corporation, properly licensed to sell certain alcoholic liquors for consumption on the premises, under the provisions of the liquor control act, Act No. 8, Pub.Acts 1933, Ex.Sess., as amended by Act No. 281, Pub.Acts 1937. Plaintiff's order for certain alcoholic liquors was accepted by the commission but plaintiff's demand for 15 per cent discount was denied.

The question for decision is whether plaintiff is entitled to the 15 per cent discount on purchases of liquor made by it from the liquor control commission. The applicable provisions of the liquor control act Sec. 16 (Stat.Ann.1942 Cum.Supp. § 18.987) are as follows: ‘On the sale of alcoholic liquors made by state liquor stores to specially designated distributors, there shall be allowed a discount of ten per cent deducted from the sale price as established by the commission, and to establishments licensed to sell for consumption on the premises there shall be allowed a discount of fifteen per cent, deducted from the sale price as established by the commission.'

Plaintiff does not claim to be a ‘specially designated distributor,’ and the only question is whether it is an ‘establishments licensed to sell for consumption on the premises.’ If so, it is entitled to the 15 per cent discount.

It is conceded that plaintiff is a club, properly licensed as defined in section 2 of the liquor control act as amended by Act No. 281, Pub.Acts 1937 (Stat.Ann.1942 Cum.Supp. § 18,972).

It is also conceded that plaintiff has the right to sell certain classes of intoxicating liquor for consumption on the premises, under the following provisions of the act Sec. 24 (Stat.Ann. 1942 Cum.Supp. § 18.995):

‘The following classes of vendors shall have the right to sell the several alcoholic liquors as provided for in this section:

* * *

‘3. Clubs wherein beer, wine and spirits may be sold for consumption on the premises only to bona fide members, who have attained the age of twenty-one years.'

The commission argues that clubs, under the above-quoted section 24, subdivision 3, are not entitled to the discount and that it was intended by the legislature to allow the discount only to commercial establishments licensed under section 24, subdivision 2, which reads as follows: ‘2. Class ‘C’ license wherein beer, wine and spirits may be sold for consumption on the premises.'

The limitation on sale of alcoholic liquor under section 24, subdivision 3, ‘only to bona fide members, who have attained the age of twenty-one years' limits but does not change the plain effect of the words ‘sold for consumption on the premises only.’ Liquor is just as plainly sold for consumption on the premises under section 24, subdivision 3, as under section 24, subdivision 2. The only difference is that under subdivision 3 it can be sold only to bona fide members of the club who have attained the age of...