Dist. Ct. erred in dismissing plaintiffs-Indiana liquor retailers lawsuit alleging that Illinois statute’s failure to give them opportunity to apply for license to ship liquor to Illinois consumers violates Commerce Clause and Privileges and Immunities Clause of U.S. Constitution, where said law provides opportunity for liquor retailers in Illinois to obtain license to ship liquor to Illinois consumers. While defendants argued that instant restriction fell within reserved powers under 21St Amendment and was otherwise necessary to protect State’s legitimate interests in health and well-being of Illinois residents, Ct. of Appeals found that Dist. Ct. failed to conduct necessary inquiry regarding State’s justification for requiring in-state presence for retailers who wish to make state-wide shipments of liquor sales. Ct. further noted that statute itself mentions threat of direct marketing of liquor to “economy of its State,” and thus State needs to explain why it needs to discriminate against interstate commerce and flatly bar out-of-state retailers from obtaining license to ship liquor to Illinois consumers.
Federal 7th Circuit Court
Civil Court
Commerce Clause