JUDGE EXPECTED TO MAKE A COSTCO DECISION SOON

According to the Seattle Post Intelligencer, U.S. District Judge Marsha Pechman seems to be leaning towards Costco’s side. After hearing closing arguments yesterday, Judge Pechman said she plans to making a ruling in three weeks on whether Washington’s 3-tier system can stand under the 21st Amendment. For those of you who don’t know, the 21st Amendment repealed Prohibition and gave states the right to control their own alcohol distribution system, hence the 3-tier. This three pronged system was designed to help maintain temperance and monitor illegal alcohol purchases, preserve an orderly market and ensure tax collection. It’s an orderly structure that has helped the alcohol industry run smoothly since 1933 and Costco is ready to unhinge it. Do they really understand what they’re getting themselves into? Judge Pechman reportedly stated, “‘You have out-of-state producers shipping directly to retailers, you have someone who is a producer, a distributor and a retailer all at once. Where is your three-tier system now?’” Wow. However, Assistant Attorney General David Hankins defended the Liquor Control Board by pointing out that the system still very much exists because each party must be licensed for additional duties and are responsible for collecting taxes.