We represented the Washington Beer & Wine Wholesalers Association (WBWWA) in successfully defeating an attempt by Costco Wholesale Corporation to dismantle Washington’s beer and wine regulatory system.  This case has commanded nation-wide attention, because it has the potential to affect the alcohol distribution laws of every state in the country.

Costco brought a lawsuit in Federal Court in Seattle against the members of the Washington State Liquor Control Board to invalidate many of the Washington statutes and regulations that govern the distribution and sale of beer and wine, including those that prohibit the use of volume discounts and credit, those that require delivered pricing and minimum markups, those that prohibit central warehousing and retailer-to-retailer sales, and those that require advance posting of prices with the Liquor Control Board.

As soon as the suit was filed, we successfully moved for leave to intervene as a matter of right and WBWWA has since participated in the case as a party defendant along with the members of the Liquor Control Board.  We took the lead role in addressing the antitrust issues in the litigation and played a major role in addressing the Twenty-First Amendment issues.

Costco claimed that all of the challenged laws violate the Sherman Antitrust Act and are preempted under the Commerce Clause of the United States Constitution.  Although Costco was successful at the trial court, the Ninth Circuit Court of Appeals accepted our analysis of the antitrust issues and upheld all of Washington’s laws except the price-posting requirements.