Essenfeld Bros. v. Hostetter
Essenfeld Bros. v. Hostetter
Opinion of the Court
This is an action brought by Essenfeld Bros, and Railway Express Agency (hereafter designated BE A) against the defendants constituting the State Liquor Authority (hereafter referred to interchangeably as defendants or Authority) for a declaratory judgment and an injunction. The complaint alleges, in essence, that the plaintiffs hold permits issued by
The plaintiffs thereupon instituted the present suit in which they seek (1) a declaratory judgment declaring that the plaintiffs are entitled to clear through United States Customs and deliver to New York residents alcoholic beverages purchased by the latter for their own personal use while outside the country and (2) an injunction to restrain the defendants from enforcing Bulletin No. 359 and interfering with the plaintiffs' clearing and delivering activities. Following service of the defendants ’ answer, in which they repeated their charge that the plaintiffs are engaged in acts violative of the several subdivisions of section 102, the plaintiffs moved for judgment on the pleadings or, in the alternative, for summary judgment. The court at Special Term granted the motion but, on appeal, the Appellate Division, by a divided court, reversed the resulting judgment and dismissed the complaint on the ground that section 102 (subd. 1, par. [c]) “ prohibits plaintiffs from bringing and shipping into this State alcoholic beverages unless they are consigned to a person duly licensed under the statute to traffic therein ” (20 A D 2d 34, 38).
Subdivision 1 (par. [e]) of section 102 provides that “No alcoholic beverages shall be shipped into the state unless the same shall be consigned to a person duly licensed hereunder to traffic in alcoholic beverages ” and subdivision 1 (par. [d]) declares that no common carrier or other person may bring or carry such beverages into the State unless consigned to one so licensed. This is sweeping language but, as this court wrote some years ago in construing the latter subdivision, “In the interpretation of statutes, the spirit and purpose of the act and the objects to be accomplished must be considered. * * * Literal meanings of words are not to be adhered to or suffered to * defeat the general purpose and manifest policy intended to be promoted ’ ”. (People v. Ryan, 274 N. Y. 149, 152.) “ There is no more likely way to misapprehend the meaning of language—be it in a constitution, a statute, a will or a contract ”, Judge Learned Hand has reminded us, “ than to read the words literally, forgetting the object which the document as a whole is meant to secure.” (Central Hanover Bank & Trust Co. v. Commissioner of Int. Revenue, 159 F. 2d 167,169; see, also, Spencer v. Childs, 1 N Y 2d 103,106-107; Cabell v. Markham, 148 F. 2d 737, 739.)
With these principles in mind, it is clear that the prohibition contained in paragraph (c) of subdivision 1, as well as in paragraph (d) of subdivision 1, is directed not at a shipment to a person who has purchased liquor for his own personal use but solely at shipments to those who are engaged in the liquor business and have purchased the alcoholic beverages
Indeed, were we to accept the interpretation of paragraph (c) of subdivision 1 contended for by the Authority, we would be ascribing to it a meaning at odds with the explicit language of another section of the same statute. . Subdivision (c) of section 116, in so many words, authorizes a bona fide trucking agency, such as the plaintiffs herein, to deliver alcoholic beverages from various transportation depots to “ a purchaser for purposes of consumption ”. There is no additional requirement that such a purchaser have a license “ to traffic in alcoholic beverages ” and, accordingly, we should not, as the court admonished in the Ryan case (274 N. Y. 149, 153, supra), read section 102 in such a way “as to deny to the [plaintiffs] the right to transport which is expressly granted by section 116.” (See, also, Matter of Wylegala v. Railway Express Agency, 177 Misc. 1071, 1074, affd. 264 App. Div. 937.)
If, as of course is here the fact, a person is privileged to carry with him alcoholic beverages (which he purchased for his own use), the applicable provisions of the statute as they are now written should be read as entitling him to enlist the services of a licensed trucker to do the carrying for him. It is our opinion, therefore, that the plaintiffs’ transportation of alcoholic beverages into New York does not violate the provisions of section 102 of the Alcoholic Beverage Control Law where the consignee, a resident of this State, is also the consignor and he purchased the beverages abroad for his own use. Having construed the statute as we have, there is no occasion to consider the constitutional questions advanced by the plaintiffs.
As is evident, we have limited our decision to a consideration of the plaintiffs’ shipping activities and have left for future determination the further question as to the legality of certain advertising and soliciting procedures which the Authority also claims are violative of the Alcoholic Beverage Control Law. We are prompted to adopt this course not only because the latter question, inadequately raised in an oblique and confused way in the record before us, is clearly and forthrightly presented in other cases now pending in our courts—such as People v. Tourists Int. (20 A D 2d 41) —but also because exam
The order of the Appellate Division should be reversed and the judgment of Special Term reinstated, with costs in this court and in the Appellate Division.
. More specifically, it appears that each consignor-consignee effected his purchases abroad either personally or through order forms obtained by him before leaving New York State and sent while abroad to a supplier located in some foreign country (which he may or may not actually visit); in both instances, arrangements are made by the purchaser, either personally or by correspondence, with a foreign agent of one of the plaintiffs or some other carrier to have the liquor cleared through customs and delivered to him in this State.
Dissenting Opinion
(dissenting). Subdivision 1 of section 102 of the Alcoholic Beverage Control Law, by paragraph (c) prohibiting shipments of alcoholic beverages into this State, unless consigned to a person duly licensed, and by paragraph (d) prohibiting common carriers from bringing or carrying liquor within the State, unless so consigned, is so clearly expressed that its meaning is unmistakable and, as such, constitutes an expression of legislative intention requiring no judicial construction or interpretation. If there is any doubt as to the public policy thus clearly stated—and none is apparent — the Legislature effectively removed it in paragraph (e) which provides: “ (e) Subdivisions (c) and (d) hereof shall apply to alcoholic beverages, either in the original package or otherwise, whether intended for personal use, as well as otherwise, and to interstate, as well as intrastate, shipments or carriage.” The words “whether intended for personal use ” can only mean that no alcoholic beverages may be shipped into the State unless “ consigned to a person duly licensed” (par. [c]).
People v. Ryan (274 N. Y. 149) is not authority to the contrary. That was a criminal prosecution against a private individual who had brought into the State a few bottles of wine and spirits which he had concededly bought and paid for solely for his personal use, not for resale or distribution to others, and who was not a ‘ ‘ common carrier ”. We thus read the words “or other person” as a person engaged in an occupation similar to a common carrier who is prohibited from bringing or carrying alcoholic beverages into the State unless consigned, etc., and thus defendant committed no prohibitive act.
Section 116, relating as it does to delivery of alcoholic beverages sold within the State by a licensed retailer to a private consumer, is neither an exception to nor an enlargement of section 102. Section 102 relates to shipments and deliveries of
The order of the Appellate Division should be affirmed, with costs.
Chief Judge Desmond and Judges Van Voorhis and Burke concur with Judge Fuld; Judge Dye dissents in an opinion in which Judges Scileppi and Bergan concur.
Order reversed, etc.
Reference
- Full Case Name
- Essenfeld Bros., Inc., Et Al., Appellants, v. Donald S. Hostetter Et Al., Constituting the State Liquor Authority of the State of New York, Respondents
- Cited By
- 9 cases
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- Published