Department of Alcoholic Beverage Control v. Alcoholic Beverage Control Appeals Board

The Department of Alcoholic Beverage Control (Department) seeks an order of this court reinstating its determination that there is cause to suspend the license of Norman C. Deleuze and Rosa Lee Deleuze doing business as ZD Wines, a winegrower/supplier licensee (collectively ZD). The Department had issued a decision that ZD’s payment for advertising in the exclusive sales catalog of an individual retail licensee violated the proscriptions of the “tied-house” laws. The Alcoholic Beverage Control Appeals Board (Board) reversed the decision, finding that the Department’s interpretation of the statute was too restrictive. We conclude that the Department’s decision contains a reasoned interpretation and application of the alcoholic beverage control laws and, therefore, must be affirmed.

I. Factual and Procedural Background

The facts in this matter are not in dispute. The parties submitted the following stipulated facts: “1. Norman C. de Leuze and Rosa Lee de Leuze doing business as ZD Wines (‘[ZD]’) hold a winegrower’s license. HD 2. Mel-Jen, a California corporation doing business as Wally’s (‘Wally’s’), holds an off-sale general retail license at 2107-09 Westwood Boulevard,…