The state’s Alcoholic Beverage Control Administration Division’s lottery to award new retail liquor licenses in Benton County has resulted in another lawsuit challenging a state law that prohibits individuals from having an interest in more than one liquor store.
Six lawsuits have been filed in circuit and federal court over permits in the Northwest Arkansas county since the residents voted in November to allow alcohol sales.
The latest lawsuit was filed in the Eastern District of U.S. District Court by Robert McCurry, who holds a minority interest in Gild Corp. and Gild Holdings LLC, owned by Roger Gildehaus. The two entities operate the Missouri-based Macadoodles liquor stores. So far, there’s only one in Arkansas, just off Interstate 540 in Springdale.
On the basis of population, the state was allowed to award 55 off-premises retail liquor permits, though more than that applied. So Alcoholic Beverage Control held a lottery to decide which applicants would be granted hearings.
McCurry’s application was drawn first at the lottery, and his hearing was held July 16. He plans to put a store called The Fine Wine & Spirits Storeat 2503 S.E. J St. in Bentonville.
But the agency denied McCurry’s application on the basis of his small ownership in the Gild companies.
“The permit was denied on the basis that he had an interest in another liquor permit,” said McCurry’s attorney, Jim Lyons of Lyons & Cone PLC in Jonesboro. The store to which the agency referred was the Springdale store, which is owned by another franchisee. State law prohibits individuals from having an interest in more than one liquor store in the state.
Lyons argues that McCurry’s involvement with the franchiser, the two Gild companies, does not give him an interest in the franchise in Springdale.
“We think that to have a retail liquor permit, you have to actually have an ownership interest in that store,” Lyons said. One of the issues in the four-count lawsuit is that the term “interest” is not defined.
Mindy Pipkin of the state attorney general’s office will defend the lawsuit for the alcohol control agency. She said she has yet to respond to McCurry’s suit and wouldn’t comment until she answered the complaint.
No court date has been set.
The lawsuit also claims that the statutes governing the distribution of liquor licenses are “void for vagueness. Some terms in the statutes are not easily defined, Lyons said.
Lyons’ hopes to persuade a judge to declare specific statutes unconstitutional so McCurry can carry on with plans for the new store. No liquor licenses in Benton County will be awarded until all appeals are addressed and finalized.
Lyons said he filed the suit in federal court because “we believe that it is unconstitutional both under Arkansas law as well as the U.S. Constitution.”
The other lawsuits include two filed by Christopher Moore against Christie Gildehaus, who is Roger Gildehaus’ wife, and Tim Harrell, who has done construction for Roger Gildehaus. Both of whom are seeking to open stores in Benton County. Moore was granted a liquor permit for Fosters Fine Spirits in Rogers and says he was injured by another permit being granted in violation of state law.
Similar to the battle McCurry is fighting, Moore contends in his lawsuit that the permits issued to Christie Gildehaus and Harrell were done so improperly because the two have relationships with Roger Gildehaus, majority owner of Gild Corp. and Gild Holdings.
Front Section, Pages 1 on 08/31/2013