Source: s3://data.kl3m.ai/documents/govinfo/USCOURTS/USCOURTS-cand-5_06-cv-02890/USCOURTS-cand-5_06-cv-02890-6/pdf.json

Nature of Suit Code: 950
Nature of Suit: Constitutionality of State Statutes
Cause of Action: 28:2201 Constitutionality of State Statutes

---

1

2

3

4

5

6

7

8

9

10

11

12

13

14

15

16

17

18

19

20

21

22

23

24

25

26

27

28

Joint Case Management Conference Statement Case No. 5:06-CV-02890-JF 

Kenneth W. Starr (S.B.N. 58382) 

James W. Shannon Jr. (S.B.N. 232039) 

Tracy Kathryn Genesen (S.B.N. 159324) 

KIRKLAND & ELLIS LLP 

555 California Street 

San Francisco, California 94104-1501 

Telephone: (415) 439-1400 

Facsimile: (415) 439-1500 

Attorneys for Plaintiffs 

UNITED STATES DISTRICT COURT 

NORTHERN DISTRICT OF CALIFORNIA 

 SAN JOSE DIVISION 

KNIGHTSBRIDGE WINE SHOPPE, LTD., ET 

AL., 

 Plaintiff, 

vs. 

JERRY R. JOLLY, IN HIS CAPACITY AS 

DIRECTOR OF THE CALIFORNIA 

DEPARTMENT OF ALCOHOLIC 

BEVERAGE CONTROL, 

 Defendant. 

 Case No. 5:06-CV-02890-JF 

JOINT CASE MANAGEMENT 

CONFERENCE STATEMENT; 

NOTICE OF AUTHORIZATION TO 

EXTEND STAY OF PROCEEDINGS; 

AND [PROPOSED] ORDER 

Date: 12/21/2007 

Time: 10:30 a.m. 

Courtroom: 3 

Judge: Hon. Jeremy Fogel 

**E-filed 12/14/07** ---------------- CONTINUING CMC

Case 5:06-cv-02890-JF Document 33 Filed 12/14/07 Page 1 of 4
1

2

3

4

5

6

7

8

9

10

11

12

13

14

15

16

17

18

19

20

21

22

23

24

25

26

27

28

Joint Case Management Conference Statement -2- Case No. 5:06-CV-02890-JF 

This case arises out of the Supreme Court’s decision in Granholm v. Heald, (2005) 544 

U.S.460. In Granholm, the Supreme Court held that certain state statutes prohibiting out-of-state 

wineries from shipping directly to in-state consumers, but permitting in-state wineries to do so if 

licensed, discriminated against interstate commerce in violation of the Commerce Clause of the 

United States Constitution (U.S. Const., art. I, §6). The question presented here is whether, in light 

of the principles set forth in Granholm, the California statutory scheme regulating out-of state wine 

retailers violates the Commerce Clause. 

Pursuant to Section III.1. of the Stipulation, Agreement, and Order entered on November 15, 

2006 (“Stipulation”), proceedings in this action were stayed by the Court in order to allow the 

Specialty Wine Retailers Association to pursue legislative action during the 2007-2008 session of 

the California Legislature to amend the ABC Act to grant all retail licensees in other States the right 

to sell and ship wine directly from their premises to adult California residents (hereafter referred to 

as “permit legislation”). Section III.1. of the Stipulation further provides, in relevant part, that this 

stay “shall remain in effect” until: 

“e. December 31, 2007; except that this date shall be extended as provided in Section II.3.c. 

 if, by no later than December 31, 2007, the Parties have jointly filed a notice with this 

Court authorizing such extension.” 

Section II.3. of the Stipulation, in turn provides that Section II.1., which sets forth 

Defendant’s agreement to “continue to exercise its prosecutorial discretion” not to take any 

enforcement action under Cal. Bus. & Prof. Code Sections 23300, 23661, or 23661.2 against out-ofstate retail licensees for selling and shipping wine for personal use and not for resale directly to adult 

California residents, “will remain in effect” until: 

“c. December 31, 2007; except that if ... the Specialty Wine Retailers Association ... has ... 

engaged in good faith efforts to secure the enactment of [permit] legislation ... then this date shall be 

extended until the last day on which legislation passed during the second year of the 2007-2008 

biennial session [of the California Legislature] could become law under the [State] Constitution ... 

or December 31, 2008....”

Unfortunately, no such legislation will be enacted by December 31,2007. However, in light 

Case 5:06-cv-02890-JF Document 33 Filed 12/14/07 Page 2 of 4
1

2

3

4

5

6

7

8

9

10

11

12

13

14

15

16

17

18

19

20

21

22

23

24

25

26

27

28

Joint Case Management Conference Statement -3- Case No. 5:06-CV-02890-JF 

of Specialty Wine Retailer’s on-going good faith efforts to secure “permit legislation,” the parties 

wish to invoke the “extension option” set forth in Section II .3.c. 

Therefore, the Parties hereby authorize extension of the December 31, 2007 date set for 

expiration of the stay of proceedings in this action pursuant to Section III.1.e. of the Stipulation to 

December 31, 2008 and further stipulate and agree that the December 31, 2007 date set pursuant to 

Section II.3.c. of the Stipulation for expiration of the agreement set forth in Section II.1. shall 

likewise be extended to December 31, 2008, effective as of the date of entry of the proposed order 

set forth below. 

Dated: December 7, 2007 Kenneth W. Starr 

James Shannon 

Tracy K. Genesen 

KIRKLAND & ELLIS LLP 

By: s/ Tracy Kathryn Genesen

Tracy Kathryn Genesen 

ATTORNEYS FOR PLAINTIFFS 

Dated: December 7, 2007 EDMUND G. BROWN JR. 

Attorney General of the State of California 

JACOB APPELSMITH 

Senior Assistant Attorney General 

FIEL D. TIGNO 

Supervising Deputy Attorney General 

By: s/ Marjorie E. Cox

Marjorie E. Cox 

Deputy Attorney General 

ATTORNEYS FOR DEFENDANT 

Case 5:06-cv-02890-JF Document 33 Filed 12/14/07 Page 3 of 4
1

2

3

4

5

6

7

8

9

10

11

12

13

14

15

16

17

18

19

20

21

22

23

24

25

26

27

28

Joint Case Management Conference Statement -4- Case No. 5:06-CV-02890-JF 

[PROPOSED ORDER]

The December 27, 2007 date for expiration of the stay of proceedings in this action set forth 

in Section III.1.e. of the Stipulation, Agreement and Order entered in this action on November 15, 

2006 is hereby extended to December 31, 2008. 

DATE: HONORABLE JEREMY F. FOGEL 

United States District Court Judge 

Case Management Conference is continued to January 9, 2009 at 10:30 AM. 12/13/07

Case 5:06-cv-02890-JF Document 33 Filed 12/14/07 Page 4 of 4