5th Circ. Undoes Walmart's Texas Liquor Sales Win

Law360 (August 15, 2019, 10:33 PM EDT) -- A Texas rule barring public corporations from owning liquor stores does not necessarily discriminate against out-of-state retailers, the Fifth Circuit said Thursday, undoing both a Texas federal judge's decision to the contrary and a win for Walmart and other large retailers hoping to sell liquor in the state.

In a unanimous decision, the panel ruled that U.S. District Judge Robert L. Pitman was wrong to enjoin the public corporation ban, a provision of the Texas Alcoholic Beverage Code, finding that the state's litigated history of discriminating against out-of-state booze-sellers is not reason enough to find the corporation ban discriminatory.

"That history...

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