Unknown
188 A. 2d 123, 41 Del. Ch. 74 (1963)
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Rule of Law:
A state legislature, under its broad police powers to regulate the sale of alcoholic liquor, may prohibit such sales in certain types of businesses so long as the classification is not clearly arbitrary and capricious and is supported by any reasonably conceivable state of facts.
Facts:
- The petitioner-appellant is the lessee of a property where they conduct a cigar store.
- The petitioner sought a license to sell alcoholic liquor at the cigar store.
- A Delaware statute makes it unlawful for any lessee conducting a cigar store, grocery store, or delicatessen shop to sell or dispense alcoholic liquors.
- Based on this statute, the Delaware Liquor Commission took action that prevented the petitioner from obtaining a license.
Procedural Posture:
- The petitioner applied to the Delaware Liquor Commission for a license to sell alcoholic liquor.
- The Delaware Liquor Commission, acting under a state statute, denied the petitioner's application.
- The petitioner, as appellant, appealed the Commission's decision directly to this court.
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Issue:
Does a state statute prohibiting the sale of alcoholic liquor by lessees conducting a cigar store create an arbitrary and unreasonable classification that violates constitutional principles?
Opinions:
Majority - Rodney, J.
No, the state statute does not create an arbitrary and unreasonable classification. The control and supervision of traffic in alcoholic liquors falls squarely within the general police powers of a state, and the legislature has plenary power to regulate it. A legislative classification related to occupational licenses is entitled to significant judicial support and will only be overturned if it is clearly arbitrary and capricious. The court will not substitute its judgment for the legislature's, and if any state of facts can reasonably be conceived to sustain the classification—such as the legislature believing cigar stores are frequented by youth and selling liquor there would be prejudicial to the public good—the law must be upheld. The right to sell liquor is not a fundamental or inalienable right protected by the Constitution, giving the legislature wide latitude in its regulation.
Analysis:
This decision reinforces the high level of judicial deference afforded to state legislatures under the rational basis standard of review, particularly concerning the regulation of alcohol. It solidifies the principle that the sale of liquor is a privilege, not a right, and that states have broad police power to impose restrictions on it for the public welfare. The case demonstrates that as long as a conceivable, non-arbitrary reason exists for a legislative classification in this area, courts will uphold the statute, even if its wisdom or effectiveness is debatable. This precedent makes it difficult to challenge economic or social regulations that differentiate between types of businesses, especially in highly regulated industries.
