After successfully suing Oregon, Washington Breweries file Lawsuit against Idaho
Two Washington breweries have filed a lawsuit against the State of Idaho to gain the ability to self-distribute beer to Idaho retail establishments. Their one count complaint alleges Idaho law unlawfully discriminates against out-of-state breweries.
After successfully suing the state of Oregon and the Oregon Liquor Control & Cannabis Commission for the right to self-distribute and direct ship, a few Washington breweries are setting their sights on Idaho. The Plaintiffs are Varietal Beer Co. (Sunnyside, WA), and the lawsuit is led by Dwinell Country Ales (Goldendale, WA) and co-owner and practicing lawyer Justin Leigh. The two entities filed their one count Complaint with the United States District Court in Pocatello, alleging that current Idaho law discriminates against out-of-state breweries in violation of Article 1, Section 8, Clause 3 of the United States Constitution, also known as the “Commerce Clause.”
The Commerce Clause grants Congress the authority to regulate interstate commerce and prohibits individual states from enforcing laws that discriminate against, or unduly burden, interstate commerce.
Currently, Idaho Code § 23-1003(f) authorizes Idaho-based breweries that produce less than 30,000 barrels annually to obtain a wholesale license that enables them to self-distribute to retailers. However, the Idaho Alcohol Beverage Control Bureau, a division of the Idaho State Police, will not grant this wholesale license to out-of-state breweries. The Plaintiffs allege this policy unlawfully discriminates against out-of-state breweries in a manner that violates the Commerce Clause.
The Plaintiffs are represented by attorneys Robert Epstein and James Tanford of Epstein Seif Porter & Beutel along with local counsel Heidi Buck Morrison of Racine Olson, PLLP.
Epstein recently represented Washington breweries in a nearly identical lawsuit filed last summer against the State of Oregon. In that case, after only 8 months of litigation, the State of Oregon agreed to a settlement, granting out-of-state breweries the right to self-distribute. The settlement terms were then integrated into Oregon House Bill 2013, which Governor Kotek recently signed into law, and will take effect September 24, 2023.
“The success in Oregon affirmed the effectiveness of our legal strategy,” says Justin Leigh, co-owner of Dwinell Country Ales. “We are optimistic we’ll experience similar success in Idaho.”
The “Complaint” is captioned as Roberts v. Gripton under Case No. 4:23-cv-000346-REP.