Wal-Mart Stores, Inc. v. Texas Alcohol Beverage Commission, No. 18-50299 (5th Cir. 2019)
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The Fifth Circuit granted the petition for panel rehearing, withdrew its prior opinion, and substituted the following opinion.
Walmart filed a 42 U.S.C. 1983 action against the TABC, challenging Texas statutes that govern the issuance of permits allowing for the retail sale of liquor in Texas (package store permits). Section 22.16 of the Texas Alcohol Beverage Code prohibits public corporations from obtaining package store permits in Texas. TPSA later intervened as a matter of right in defense of the statutes.
The Fifth Circuit held that the district court erred in its findings regarding the public corporation ban’s discriminatory purpose. The court held that, although the district court correctly cited the Arlington framework, some of its discriminatory purpose findings were infirm. In this case, the record did not support only one resolution of the factual issue, because there was evidence that could support the district court's finding of a purpose to discriminate. Therefore, the court vacated and remanded in part for a reweighing of the evidence.
The court also held that the district court committed clear error in finding that Section 22.16 was enacted with a purpose to discriminate against interstate commerce, and the facially neutral ban did not have a discriminatory effect. The court vacated the district court's judgment that the public corporation ban violated the dormant Commerce Clause, and remanded for reconsideration of whether the ban was enacted with a discriminatory purpose. The court also held that the district court erred in its analysis when it determined that section 22.16 violates the dormant Commerce Clause under the Pike test. Therefore, the court rendered judgment in favor of defendants on the claim that an impermissible burden existed under the Pike test.
The court affirmed in part the district court's judgment rejecting Walmart's Equal Protection challenge to the public corporation ban, and held that the ban was rationally related to the state's legitimate purpose of reducing the availability and consumption of liquor throughout Texas. Finally, Walmart's challenges to section 22.04 and 22.05 are withdrawn in light of House Bill 1545.
This opinion or order relates to an opinion or order originally issued on August 15, 2019.
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