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Walmart Stores, Inc., et al. v. Texas Alcoholic Beverage Commission, et al.

Paid petition · United States Court of Appeals for the Fifth Circuit, No. 18-50299 · judgment December 9, 2019


Certiorari denied · November 23, 2020
Pre-decision estimate: 5% cert probability

Before the decision, modestly above the 4.1% base rate. The model weighted this up for a Fifth Circuit decision below, a circuit split argued in the petition, and a business petitioner, and down for a state or local-government respondent.

Question presented

Just this past Term, this Court “reiterate[d] that the Commerce Clause by its own force restricts state protectionism” and that a state law violates that constitutional constraint if its “predominant effect … is simply to protect” in-state retailers “from out-ofstate competition.” Tennessee Wine & Spirits Retailers Ass’n v. Thomas, 139 S. Ct. 2449, 2461, 2476 (2019). In this case, the district court found as a matter of fact that a Texas law that bans public corporations from obtaining a license to own a retail liquor store has exactly that effect. Indeed, as a direct result of that law, 98% of liquor stores in Texas are wholly owned by Texans. Yet the Fifth Circuit nonetheless held that the law does not have a discriminatory effect on interstate commerce. It did not do so because it disputed the district court’s factual findings about the law’s real-world effects. It did so because, in its view, this Court’s decision in Exxon Corp. v. Governor of Maryland, 437 U.S. 117 (1978), compels the conclusion that a facially neutral regulation based on “corporate form” does not have a discriminatory effect as a matter of law, even if it “create[s] an obvious and significant barrier against out-of-state economic actors.” App.52 n.11. The question presented is: Whether a state law that has the predominant effect of protecting in-state retailers from out-of-state competition is immune from constitutional scrutiny just because it does not facially distinguish between in-state and out-of-state businesses of the same form.

Counsel of record

For petitioner
Erin E. Murphy
Clement & Murphy, PLLC

For respondent
Kyle Douglas Hawkins
Lehotsky Keller Cohn LLP

Case

Conference history
Distributed for 2 conferences

Amicus briefs
3 cert-stage

Linked docket
19A1013

Proceedings

  1. Nov 23 2020
    Petition DENIED.
  2. Nov 04 2020
    DISTRIBUTED for Conference of 11/20/2020.
  3. Nov 04 2020
    Reply of petitioners Wal-Mart Stores, Inc., et al. filed. (Distributed)
  4. Oct 20 2020
    Brief of respondent Texas Package Stores Association in opposition filed.
  5. Oct 20 2020
    Brief of respondents Texas Alcoholic Beverage Commission, et al. in opposition filed.
  6. Aug 21 2020
    Brief amicus curiae of The Chamber of Commerce of the United States of America filed.
  7. Jul 31 2020
    Motion to extend the time to file a response is granted and the time is extended to and including October 20, 2020, for all respondents.
  8. Jul 30 2020
    Motion to extend the time to file a response from August 21, 2020 to October 20, 2020, submitted to The Clerk.
  9. Jul 22 2020
    Response Requested. (Due August 21, 2020)
  10. Jul 13 2020
    Brief amicus curiae of Retail Litigation Center, Inc. filed. (Distributed)
  11. Jul 10 2020
    Brief amicus curiae of The Cato Institute filed. Distributed
  12. Jul 01 2020
    DISTRIBUTED for Conference of 9/29/2020.
  13. Jun 16 2020
    Waiver of right of respondents Texas Alcoholic Beverage Commission, et al. to respond filed.
  14. Jun 16 2020
    Waiver of right of respondent Texas Package Stores Association to respond filed.
  15. Jun 15 2020
    Letter pursuant to Rule 35.3 from counsel for respondents submitted.
  16. Jun 05 2020
    Petition for a writ of certiorari filed. (Response due July 13, 2020)
  17. Mar 13 2020
    Application (19A1013) to extend the time to file a petition for a writ of certiorari from April 6, 2020 to May 6, 2020, submitted to Justice Alito.
  18. Mar 13 2020
    Application (19A1013) granted by Justice Alito extending the time to file until May 6, 2020.