Tuesday, November 07, 2006

JUDGE PECHMAN RULES IN FAVOR OF WHOLESALERS

Good news for wholesalers regarding the Costco litigation in Washington. Last Friday (Nov. 7) U.S. District Court Judge Marsha Pechman ruled that the Washington Beer & Wine Wholesalers Association (WBWWA) was not liable for any portion of the $1.7 million in attorney fees and $66,972 in costs awarded to Costco.

The question before the Court was whether the WBWWA as intervener-defendant in the case was jointly and severely liable for attorney fees and costs along with the Washington State Liquor Control Board. The Court denied this motion from Costco and issued an order that the Washington Beer & Wine Wholesalers Association was not liable.

Costco could still appeal this ruling to the 9th Circuit.

Although throughout the trial members of the WBWWA felt strongly that the Association would not have any liability in the case as intervener-defendant, Costco argued in their motion that WBWWA should not be regarded as an innocent intervener. Costco also argued that the WBWWA’s intervention was unreasonable and without foundation.

However, in her ruling Judge Pechman wrote, “The Court does not conclude that the WBWWA’s actions in the litigation were frivolous, unreasonable or without foundation.”

In other continuing Costco litigation news, the WBWWA filed its opening appeal brief with the 9th Circuit Court on Monday (Nov. 6). The State’s brief is also due Monday. Supporting amicus briefs are due November 13.