Gen. Beer-Ne., Inc. v. Johnson Distrib., Inc.
Gen. Beer-Ne., Inc. v. Johnson Distrib., Inc.
Opinion of the Court
¶1 General Beer-Northeast, Inc. appeals an order of the circuit court directing General Beer and Johnson Distributing, Inc. to proceed with arbitration under WIS. STAT . § 125.33(10) (2015-16),
BACKGROUND
¶2 We describe here only those facts that are relevant to this appeal. Central Waters Brewing Company is a "[b]rewer" as defined by WIS. STAT . § 125.02(2).
¶3 Central Waters Brewing and General Beer entered into an agreement, also effective January 4, 2016, whereby Central Waters Brewing granted General Beer distribution rights to Central Waters Brewing's fermented malt beverages in much of the same area of Wisconsin in which Johnson formerly held distribution rights over Central Waters Brewing's fermented malt beverages. At that time, General Beer became a "[s]uccessor wholesaler" and Johnson became a "[t]erminated wholesaler" with respect to the distribution rights of Central Waters Brewing's fermented malt beverages. See WIS. STAT . § 125.33(10)(a)3. and 4.
¶4 Subject to four exceptions set forth in WIS. STAT . § 125.33(10)(c), which are not at issue here, a "successor wholesaler shall compensate a terminated wholesaler for the fair market value of the terminated wholesaler's distribution rights to any discontinued brand
[u]pon written demand of either party, the parties shall submit their dispute for binding arbitration, subject to [ WIS. STAT .] ch. 788 .... The arbitration shall be conducted on an expedited basis to the extent an expedited proceeding is available. The arbitration shall commence within 90 days after the successor wholesaler obtains rights to receive a supply of a brand of fermented malt beverages, that is a discontinued brand of fermented malt beverages, of the terminated wholesaler, unless this time period is extended by mutual agreement of the parties or by the arbitrator.
Sec. 125.33(10)(d).
¶5 Johnson and General Beer attempted, but were ultimately unable, to reach an agreement as to the fair market value of Johnson's distribution rights to Central Waters Brewing's fermented malt beverages. On June 22, 2016, more than ninety days after General Beer obtained the rights to distribute Central Waters Brewing's fermented malt beverages in areas in which Johnson previously held distribution rights, Johnson made a demand for arbitration. Thereafter, General Beer brought the present action seeking a declaration that Johnson is barred from proceeding with arbitration because Johnson failed to commence arbitration within ninety days of General Beer's obtaining Johnson's distribution rights to Central Waters Brewing's fermented malt beverages, and General Beer moved the circuit court for declaratory and injunctive relief barring Johnson from proceeding with arbitration. Johnson objected, arguing that the parties had mutually agreed to extend the ninety-day time period for commencement of arbitration specified in WIS. STAT . § 125.33(10)(d).
¶6 The circuit court ultimately denied General Beer's requests for declaratory and injunctive relief. The court determined that under WIS. STAT . § 125.33, the parties have a statutory obligation to arbitrate and that the issue of whether Johnson's demand for arbitration timely commenced arbitration on the ground that the parties had by their conduct extended the ninety-day time period for commencement of arbitration specified in § 125.33(10)(d) should be determined in arbitration, not by the court. General Beer appeals.
DISCUSSION
¶7 The parties do not dispute that their disagreement over the fair market value of Johnson's distribution rights is subject to arbitration under WIS. STAT . § 125.33(10). Instead, they dispute whether Johnson timely commenced arbitration and in what forum that dispute should be resolved. We agree with the circuit court that whether Johnson failed to timely commence arbitration should be determined by the arbitrator, not by the court. Accordingly, we limit our discussion to that issue and do not address arguments made by the parties that go to the question of whether Johnson timely commenced arbitration.
¶8 General Beer argues that the circuit court was the proper forum for determining timeliness because "under [ WIS. STAT .] § 125.33(10), the arbitrator is limited to determining the fair market value of the distribution rights in question." In General Beer's view, an arbitrator would exceed his or her power under WIS. STAT . § 125.33 if the arbitrator were to determine that Johnson did or did not timely commence arbitration under § 125.33(10) because the parties had by their conduct extended the ninety-day time period for commencing arbitration specified in § 125.33(10)(d).
¶9 In First Weber Group, Inc. v. Synergy Real Estate Group, LLC ,
¶10 General Beer argues that First Weber is distinguishable and not binding in this case because First Weber involved an agreement to arbitrate, whereas this case involves a statutory mandate to arbitrate. However, General Beer does not point this court to any language in First Weber , and we do not see any, that the court's reasoning is limited to those situations where arbitration of an issue is contractual as opposed to statutory. Moreover, in both First Weber and in the present case, arbitration of the parties' disputes are governed by WIS. STAT . ch. 788. See First Weber ,
¶11 Separately, General Beer appears to be arguing that because WIS. STAT . § 125.33 does not specifically provide that the timeliness of a party's request for arbitration should be determined in arbitration, that issue cannot be determined in arbitration but must instead be determined in court. General Beer fails to point this court to any legal authority supporting this argument, see Kruczek v. DWD ,
CONCLUSION
¶12 For the reasons discussed above, we affirm.
By the Court. -Order affirmed.
Not recommended for publication in the official reports.
Wisconsin Stat . § 125.33(10) provides that a wholesaler of fermented malt beverages whose agreement to distribute those beverages has been "terminated, cancelled, or [has not been] renew[ed]" may be compensated for the value of those distribution rights by the successor wholesaler of those distribution rights.
All references to the Wisconsin Statutes are to the 2015-16 version unless otherwise noted.
Wisconsin Stat . § 125.02(2) defines "[b]rewer" as "any person who manufactures fermented malt beverages for sale or transportation, except that 'brewer' does not include a permittee under [ Wis. Stat . §] 125.295."
Wisconsin Stat . § 125.02(21) defines "[w]holesaler" as "a person, other than a brewer, brewpub, manufacturer, or rectifier, who sells alcohol beverages to a licensed retailer or to another person who holds a permit to sell alcohol beverages at wholesale."
Wisconsin Stat . § 125.33(10)(a)3. defines "[s]uccessor wholesaler" as:
any wholesaler who enters into an agreement ... to obtain a supply of a brand of fermented malt beverages that is a discontinued brand, or otherwise acquires the right to act as a wholesaler for a discontinued brand, from a brewer ... for purposes of selling the discontinued brand in a specifically defined territory, if the discontinued brand was sold by a terminated wholesaler in any portion of this same territory at a time immediately before the brand of fermented malt beverages became a discontinued brand.
"Terminated wholesaler" is defined as "a wholesaler with whom a brewer ... has terminated, cancelled, or failed to renew an agreement, whether oral or written, to supply a brand of fermented malt beverages to that wholesaler." Wis. Stat . § 125.33(10)(a)4.
"Discontinued brand" is defined as "any brand of fermented malt beverages for which a brewer ... has terminated, cancelled, or failed to renew an agreement ... with the wholesaler to supply that brand." Wis. Stat . § 125.33(10)(a)2.
Both parties devote significant portions of their briefs on appeal to the question of timeliness. The circuit court did not reach that issue because it concluded that the timeliness issue should be determined in arbitration; for the same reason, neither do we.
As best we can tell, General Beer also argues that the court should determine the timeliness of Johnson's request for arbitration because the ninety-day time period is imposed by statute and "construction of a statute is properly the function of the court, not an arbitrator." General Beer fails to point this court to any legal authority supporting its apparent assertion that an arbitrator can never construe a statute. We do not consider arguments unsupported by reference to legal authority. See Kruczek v. DWD ,
Case-law data current through December 31, 2025. Source: CourtListener bulk data.