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Access over workers' compensation decisions, including En Banc, Significant Panel Decisions, and writ-denied cases.

Case No. MISSING
Regular Panel Decision

Texas Alcoholic Beverage Commission v. Live Oak Brewing Co.

The Texas Alcohol Beverage Commission appealed a trial court's judgment declaring Section 102.75(a)(7) of the Texas Alcoholic Beverage Code unconstitutional. This statute prohibits manufacturers from accepting payment for the assignment of territorial distribution rights. Appellees, several craft breweries, argued the statute violated their economic liberty interest under the Texas Constitution's due course of law clause by restricting their ability to sell territorial rights and hindering business expansion. The appellate court reversed the trial court's decision, finding that the appellees failed to demonstrate the statute deprived them of occupational freedom or was unconstitutionally oppressive. The court affirmed the constitutionality of the statute, stating it operates within the legitimate framework of the state's three-tier alcoholic beverage regulatory system and is part of a broader legislative compromise.

Economic regulationDue course of lawTexas ConstitutionThree-tier systemAlcoholic beverage industryCraft beerDistribution rightsFacial challengeAs-applied challengeStatutory interpretation
References
21
Case No. MISSING
Regular Panel Decision

CADENA COMERCIAL USA CORP. D/B/A OXXO, Appellant v. TEXAS ALCOHOLIC BEVERAGE COMMISSION, Appellee

Cadena Comercial USA Corp. d/b/a OXXO challenged an administrative order from the Texas Alcoholic Beverage Commission (TABC) denying its application for a wine and beer retailer's off-premise permit. The TABC's denial was based on "tied house" prohibitions in the Texas Alcoholic Beverage Code, which aim for "strict separation" between manufacturers, distributors, and retailers to prevent overlapping ownership interests. Cadena, a wholly owned indirect subsidiary of FEMSA, was found to have a prohibited cross-tier relationship because FEMSA also holds a 20% stock interest in Heineken brewers (manufacturers). The court affirmed the administrative order, holding that the term "interest" in the statute broadly encompasses any commercial or economic interest providing a stake in the financial performance of an entity in the alcoholic beverage industry, and a "control" standard is not required. The court also rejected Cadena's arguments regarding constitutional vagueness, equal protection, and the inapplicability of veil-piercing principles, concluding that FEMSA's significant financial interest at multiple tiers violated the strict separation mandate.

Alcoholic Beverage CodeTied House ProhibitionRetail Permit DenialCross-tier OwnershipCorporate InterdependenceStatutory InterpretationJudicial ReviewAdministrative LawTexas Alcoholic Beverage CommissionManufacturer-Retailer Relationship
References
31
Case No. 2-05-355-CV
Regular Panel Decision
Jun 29, 2006

Twenty Wings Ltd., D/B/A Hooters v. Texas Alcoholic Beverage Commission Partnership for Community Values The Hon. Bill Zedler The Hon. Ron Wright The Hon. Steve McCollum Mrs. Leslie Recine Mrs. Melba McDow The Hon. Patricia A. Hardy Mr. Barry D. Johnson Mrs. Reland Gonzalez

This case addresses whether a trial court possessed the authority to issue a writ of mandamus compelling an administrative law judge to dismiss an administrative proceeding based on res judicata. Twenty Wings, Ltd. d/b/a Hooters, sought a mixed beverage permit, which was contested by the Texas Alcoholic Beverage Commission (TABC) and other appellees. After the administrative law judge (ALJ) denied a motion to dismiss, the appellees filed a proceeding in district court, which subsequently granted a writ of mandamus. The appellate court determined that the Texas Alcoholic Beverage Code establishes a comprehensive regulatory framework, thereby conferring exclusive jurisdiction upon the TABC and the State Office of Administrative Hearings (SOAH) to adjudicate the substantive legal and factual issues concerning mixed beverage permits. Consequently, the trial court was found to lack subject matter jurisdiction to issue the mandamus order.

MandamusExclusive JurisdictionAdministrative LawRes JudicataAlcoholic Beverage PermitTexas CourtsAppellate ReviewSubject Matter JurisdictionTABCSOAH
References
4
Case No. GA-0561
Regular Panel Decision
Aug 14, 2007

Untitled Texas Attorney General Opinion

Under the terms of the Texas Alcoholic Beverage Code, a pool hall may operate on a BYOB ("bring your own bottle") basis without a permit or license from the Texas Alcoholic Beverage Commission. Moreover, the City of Corsicana may not by municipal ordinance regulate the possession or consumption of alcoholic beverages within a pool hall that operates on a BYOB basis.

BYOB regulationAlcoholic Beverage CodeMunicipal ordinancesState preemption doctrinePool hall operationsAlcoholic beverage licensingPermit requirementsDry areasWet areasPrivate club status
References
3
Case No. NO. 2-07-150-CV
Regular Panel Decision
Jul 31, 2008

I Gotcha, Inc., D/B/A Illusions v. Texas Alcoholic Beverage Commission

I Gotcha, Inc., operating as Illusions, appealed a trial court's judgment that upheld a $13,500 civil penalty imposed by the Texas Alcoholic Beverage Commission (TABC). The penalty resulted from a TABC investigation where a dancer at Illusions allegedly solicited TABC agents for sexual purposes. Illusions contended that the dancer was an independent contractor, not an employee, and that a single incident was insufficient to justify a 'place or manner' violation. The Court of Appeals affirmed the lower court's decision, finding substantial evidence to support the administrative law judge's conclusions that the dancer was an employee and that the solicitation occurred. The court also upheld the finding of a 'place or manner' violation, citing the current incident and Illusions's prior Code violations, and found no abuse of discretion in the penalty assessment.

Alcoholic Beverage Code ViolationsCivil PenaltyAdministrative ReviewSubstantial Evidence RuleEmployee vs. Independent ContractorSolicitation for Immoral PurposesPublic DecencyPermit SuspensionAbuse of DiscretionTexas Court of Appeals
References
26
Case No. MISSING
Regular Panel Decision

Limon v. State

Eleven bar owners (appellants) challenged the constitutionality of new "good conduct" bond requirements in the Texas Alcoholic Beverage Code, seeking a declaratory judgment and an injunction against enforcement by the Texas Alcoholic Beverage Commission (the Commission). The trial court found the bond provisions constitutional and denied relief. The appellate court ruled that the appellants had standing to challenge the actual imposition of the bonds as a prerequisite for licenses but lacked standing to challenge the forfeiture provisions, as no bond had been forfeited. The court reviewed the bond requirements under a rational basis test, upholding them against due process and equal protection challenges. The judgment of the trial court was modified to reflect the standing limitations and then affirmed.

Constitutional LawDue ProcessEqual ProtectionStandingDeclaratory JudgmentInjunctionAlcoholic Beverage CodePolice PowerLicense RenewalRational Basis Review
References
35
Case No. MISSING
Regular Panel Decision
Aug 27, 2007

Houston Ass'n of Alcoholic Beverage Permit Holders v. City of Houston

The Houston Association of Alcoholic Beverage Permit Holders challenged the City of Houston Ordinance No. 2006-1054, which bans smoking in public places including bars. Plaintiffs sought a preliminary injunction, arguing the ordinance was preempted by the Texas Alcoholic Beverage Code and unconstitutionally vague. Presided over by District Judge Gray H. Miller, the court denied the motion. The decision found plaintiffs failed to demonstrate a likelihood of success on the merits, irreparable harm, or that an injunction would serve the public interest, citing strong scientific evidence on the harms of secondhand smoke.

Preliminary InjunctionSmoking BanOrdinance ChallengeTexas LawPreemptionConstitutional VaguenessPublic HealthEconomic ImpactBar OwnersHouston
References
25
Case No. MISSING
Regular Panel Decision

In re the Arbitration between New York State Office of Alcoholism & Substance Abuse Services & Ortiz

Victor Ortiz, an employee of New York State Office of Alcoholism and Substance Abuse Services (OASAS) and a member of PEF, was terminated for failing to maintain his required CASAC certification. OASAS did not follow the disciplinary procedures outlined in the collective bargaining agreement (CBA) between PEF and the state, asserting that his failure to maintain certification automatically disqualified him. Ortiz, represented by PEF, filed a grievance, arguing his termination violated articles 33 and 39 of the CBA. When OASAS and the Governor’s Office of Employee Relations maintained that the grievance process was inapplicable, respondents served a notice of intention to arbitrate. Petitioners sought to permanently stay arbitration in Supreme Court, but their petition was dismissed, and respondents' cross-motion to compel arbitration was granted. The appellate court affirmed the Supreme Court's decision, ruling that the dispute, concerning the interpretation and application of the CBA's disciplinary procedures, falls within the arbitration clause of article 34 of the CBA. The court emphasized that it is for an arbitrator to determine if article 33 of the CBA applies to terminations due to loss of required certification.

Public Sector EmploymentArbitrationCollective Bargaining AgreementEmployee TerminationProfessional CertificationDisciplinary ProcedureGrievance ProcessAppellate ReviewJudicial Review of ArbitrationStatutory Interpretation
References
6
Case No. MISSING
Regular Panel Decision
May 07, 2004

In re the Claim of Sweeny

The claimant, a sanitation worker, was discharged from his employment after testing positive for alcohol in his system at work, violating a "last chance" employment agreement. He was subsequently disqualified from receiving unemployment insurance benefits due to misconduct, a determination upheld by an Administrative Law Judge and the Unemployment Insurance Appeal Board. On appeal, the claimant argued that his alcoholism should excuse the misconduct. The court affirmed the Board's decision, ruling that there was insufficient evidence of the "outward behavioral and physiological indicia of alcoholism" required to excuse his misconduct, despite his allegation of being an alcoholic. The decision found no basis to disturb the Board's ruling.

Unemployment InsuranceMisconductAlcoholismLast Chance AgreementAlcohol TestDisqualificationAppellate ReviewAdministrative Law JudgeEmployer Discharge
References
3
Case No. MISSING
Regular Panel Decision

Chapa v. Club Corp. of America

Elvira Chapa, individually and as next friend for her minor son Julian Chapa, appealed a summary judgment granted in favor of Club Corporation of America and its affiliates. Julian, then 15, was injured in a car accident after allegedly consuming alcohol provided by his employer while working. The lawsuit claimed the Club negligently breached its duty by furnishing alcohol to a minor. The appellate court reversed the summary judgment, holding that the Texas Alcoholic Beverage Code § 106.06 imposes a legal duty not to provide alcohol to minors, and found a genuine issue of material fact existed regarding the Club's actual knowledge of Julian's minority, thus requiring a trial on the merits.

Minors and AlcoholEmployer NegligenceStatutory ViolationDuty of CareSummary Judgment ReversalActual Knowledge DisputeTexas Alcoholic Beverage CodeProximate CauseUnderage DrinkingPremises Liability
References
8
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