Litigation

Decision of Alcoholic Beverage Control Board Affirmed

By H. William Allen et al.

The Arkansas Supreme Court affirmed a decision by the Alcoholic Beverage Control Board (the "Board") in Arkansas Beverage Retailers Association v. Langley, No. 08-287 (4/9/09).

The dispute stems around a liquor store opened by Sam's Club. To do this, Sam's Club created a separate corporate entity to operate the store. Although it was next to Sam's Club, the liquor store had a separate address, entrance, and loading areas from Sam's Club. The Board approved the application. The Arkansas Beverage Retailers Association (the "Association") objected because Arkansas law prohibits department stores from selling liquor on their premises. See Ark. Code Ann. § 3-4-218.

The case came down to one issue: what is meant by premises? The Board held that the separate corporate entity was not on the premises of Sam's Club, even though it was next door. Again noting the deference given to decisions of administrative agencies, the supreme court found substantial evidence existed to support this decision and affirmed the Board.

Full post as published by Arkansas Business Litigation Blog on April 10, 2009 (boomark / email).