Lebamoff Enterprises, Inc. v. Rauner, No. 17-2495 (7th Cir. 2018)Annotate this Case
The Twenty-first Amendment to the U.S. Constitution, section 2, forbids the “transportation or importation” of liquor into a state in violation of that state’s law. The Supreme Court has decreed that states may not infringe upon other provisions of the Constitution under the guise of exercising that power and now is considering whether the Twenty-first Amendment permits states to regulate liquor sales by limiting retail and wholesale licenses to persons or entities that have resided within the state for a specified time (Tennessee Wine). Illinois allows retailers with an in-state physical presence to ship alcoholic beverages to consumers anywhere within Illinois but will not allow out-of-state businesses to apply for a similar shipping license. Plaintiffs claimed violations of the Commerce Clause and Privileges and Immunities Clause. Illinois argued that because all retailers are barred from shipping from out-of-state, the provision does not discriminate against out-of-state retailers, and that that the differential treatment is necessitated by permissible Twenty-first Amendment interests. The district court dismissed the challenge. The Seventh Circuit reversed, noting material contested issues about the necessity for and justifications behind the Illinois statute, and the possible impact of the Tennessee Wine decision. The court characterized some of the state’s justification as possible protectionism.