Court Moves Up Costco Case

Now slated for March.

The federal appeals court late last week slated its hearing on a case crucial to the three-tier system for March 5 through March 9.

The so-called Costco case – in which Costco Wholesale Corp. successfully challenged a host of Washington state laws governing alcohol beverage sales and pricing -- was expected to be heard in the summer or fall.

However, as Beer Marketer’s Insights (subscription required) notes, the Ninth Circuit Court of Appeals didn’t extend a stay order maintaining the status quo. The stay order, issued by the lower court, lasts the duration of the legislative session.

BMI says this could lead to an “interesting situation” as a ruling likely won’t be issued until near the May 7 close of the legislative session:

If (court) extends stay, legislature gets "free pass" and doesn't have to act. If stay not extended, could add pressure to act with little time cushion. Then again, if legislature changes laws on its own, that could moot appeal.

Brew Magazine did a deep dive into the Costco case and its repercussions for the beer business back in April. You can find it here.