Maita Distributors, Inc. of San Mateo v. DBI Beverage Inc.

ORDER ON CROSS-MOTIONS FOR SUMMARY JUDGMENT

[Re Docket Nos. 53, 54 and 55]

Presently before the court are the motions for summary judgment by plaintiff Maita Distributors, Inc., defendant DBI Beverage, Inc., and intervenor MillerCoors LLC. The motions came on for hearing before the court on October 30, 2009. Having considered the papers submitted by the parties, the amicus curiae papers submitted by California Beer and Beverage Distributors, and the arguments of counsel at the hearing on the motions, for good cause appearing, the motions are granted in part and denied in part, for the reasons set forth below.

I. BACKGROUND

This litigation involves the constitutionality and applicability of a portion of California’s Alcoholic Beverage Control Act, specifically California Business and Professions Code § 25000.2.

A. The Statute

Section 25000.2 was adopted in 2007 to provide an expedited method to determine the fair market value of the beer distribution rights to be paid to an existing beer wholesaler (distributor) whenever a “successor beer manufacturer” acquires rights to manufacture, import or distribute a product and cancels any of the existing beer wholesaler’s distribution…