IDAHO, USA — This article originally appeared in the Idaho Press.
Dwinell Country Ales, from Goldendale, Washington, and Varietal Beer Co., of Sunnyside, Washington, filed the lawsuit in U.S. District Court on Aug. 4. The breweries, along with Pocatello resident Jane Roberts and Moscow resident Stefan Yauchzee, are arguing that Idaho’s law prohibiting out-of-state entities from self-distributing beer to retailers is unconstitutional.
The defendants are Capt. Rocky Gripton, the chief of the Alcohol Beverage Control division of the Idaho State Police, and Attorney General Raúl Labrador.
Idaho Code allows in-state brewers that produce fewer than 30,000 barrels of beer annually to obtain a wholesale license, which allows them to self-distribute to retailers.
“The Plaintiffs seek a declaratory judgment that this scheme discriminates against out-of-state producers in violation of the dormant Commerce Clause,” the complaint states.
The lawsuit is asking the court to block enforcement of the law and to allow equivalent breweries from out of state the same access to the wholesale license.
The two residents named as plaintiffs are both described as beer collectors who desire “special beers that are difficult to locate.”
“As a consumer of fine and artisanal beer, she (Roberts) would like to purchase craft beer from out-of-state beer producers in Washington which would be added to her beer collection and have those beers shipped to her residence in Idaho, but Idaho laws, rules, and practices prohibit the out-of-state beer producers from doing so,” the complaint states.
The lawsuit alleges that the law shields Idaho business from interstate competition in violation of the Commerce Clause of the U.S. Constitution. The Commerce Clause gives Congress the power to regulate commerce among states and has been used in U.S. Supreme Court cases in which state laws that “discriminate against out-of-state goods or nonresident economic actors” were struck down, according to Congress’ Constitution Annotated website.
The lawsuit said the process gives Idaho breweries an advantage because out-of-state businesses need to use outside wholesalers, which can drive up costs.
The breweries are represented by attorneys Robert Epstein and James Tanford of Epstein Seif Porter & Beutel, along with Pocatello counsel Heidi Buck Morrison of Racine Olson, PLLP. Last summer, Epstein represented Washington breweries against the state of Oregon over a similar law; this litigation resulted in a settlement and Oregon agreeing to permit out-of-state breweries to self-distribute.
“The success in Oregon affirmed the effectiveness of our legal strategy,” Justin Leigh, co-owner of Dwinell Country Ales, said in a press release. “We are optimistic we’ll experience similar success in Idaho.”
This article originally appeared in the Idaho Press, read more on IdahoPress.com.
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