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Kasser Distillers Product Corp. v. Sills

Decided: November 16, 1964.

KASSER DISTILLERS PRODUCT CORP., A PENNSYLVANIA CORPORATION AND WILEN BROS. INC., A PENNSYLVANIA CORPORATION, PLAINTIFFS,
v.
ARTHUR J. SILLS, ATTORNEY GENERAL OF THE STATE OF NEW JERSEY AND JOSEPH LORDI, DIRECTOR OF THE DIVISION OF ALCOHOLIC BEVERAGE CONTROL, DEFENDANTS, AND N.J. WINE AND SPIRIT WHOLESALERS ASSOCIATION; GORDON BASS & CO.; CENTRAL BEVERAGE CO.; CREST WINE & SPIRITS COMPANY; CROWN, LTD.; DEALERS LIQUOR CO.; DORCHESTER, INC.; F & A DISTRIBUTING CO.; FEDERAL WINE & LIQUOR CO.; FLAGSTAFF LIQUOR CO.; FLEMING & MCCAIG, INC.; GALSWORTHY, INC.; GARDEN STATE LIQUOR WHOLESALERS; GATEWAY DISTRIBUTORS, INC.; GILLHAUS BEVERAGE CO.; GOLD STAR LIQUORS, INC.; J & J DIST. CO.; JERSEY NATIONAL LIQUOR CO.; E.L. KERNS CO.; MAJESTIC WINE & SPIRITS COMPANY; MERCHANTS WINE & LIQUOR CO.; PHILLIPSBURG BEVERAGE CO.; JOS. H. REINFELD, INC.; ROYAL LIQUOR DISTRIBUTORS; AND TRENTON BEVERAGE CO., DEFENDANT-INTERVENORS



Wick, J.s.c.

Wick

This is an order to show cause why a restraining order should not be entered enjoining the named defendants from enforcing the amendment to N.J.S.A. 33:1-11 against the plaintiffs, and others similarly situate, pending final hearing.

The plaintiffs have filed a verified complaint demanding judgment that N.J.S.A. 33:1-11, as amended, be declared unconstitutional and void, and further demanding that the named defendants be restrained and enjoined from enforcing said statute as amended.

As of November 17, 1964, N.J.S.A. 33:1-11 will read, in part, as follows (the amended portion is italicized):

"Plenary wholesale license. 1. The holder of this license shall be entitled, subject to rules and regulations, to sell and distribute alcoholic beverages to retailers and wholesalers licensed in accordance with this chapter and to sell and distribute without this State to any persons

pursuant to the laws of the places of such sale and distribution, and to maintain a warehouse and sales room; provided however, that the delivery of such alcoholic beverages by the holder of this license to retailers licensed under this Title shall be from inventory in a warehouse located in New Jersey which is operated under a plenary wholesale license. The fee for this license shall be $3,000.00.

Wine wholesale license. 2b. The holder of this license shall be entitled, subject to rules and regulations, to sell and distribute any naturally fermented, treated, blended, fortified and sparkling wines, to retailers and wholesalers, licensed in accordance with this chapter, and to sell and distribute without this State to any persons pursuant to the laws of the places of such sale and distribution, and to maintain a warehouse and salesroom; provided however, that the delivery of such wines by the holder of this license to retailers licensed under this Title shall be from inventory in a warehouse located in New Jersey which is operated under a wine wholesale license. The fee for this license shall be $1,500.00."

Plaintiff Kasser is the holder of a New Jersey plenary wholesale license under N.J.S.A. 33:1-11(1) and plaintiff Wilen is the holder of a wine wholesale license under N.J.S.A. 33:1-11(2b).

Plaintiffs contend that the amendments, which will require them to make deliveries to New Jersey retailers from inventory in a warehouse located in New Jersey, are unconstitutional. They seem to base this allegation on four grounds:

(1) The amendments put an undue burden on interstate commerce.

(2) The amendments discriminate against out-of-state wholesalers.

(3) The amendments bear no reasonable relationship to any ...


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