The attorneys from The Tipton Law Firm have been watching two interesting issues moving through the federal court system. Many of the circuit courts continue to struggle with the 21st Amendment, specifically the validity of state based regulation of alcohol. Almost simultaneously, the federal courts have struggled with how much state and local governments can dictate or interfere with airline operations. These two issues are particularly relevant to Denver business lawyer, Cory Tipton, who, in addition to working as a lawyer for Colorado businesses, also focuses her practice heavily in the aviation and liquor regulated industries. Likewise, gaming law attorney, John Tipton, who, in addition to working closely with the regulated casino gambling industry, also focuses his practice on the regulated industry of alcohol.
As many followers of the aviation industry can attest, there have been several recent cases regarding local government involvement in aviation, specific to the imposition of landing fees and on-board liquor sales. The very interesting aspect of these two recent cases is the disparity of decisions coming out of the federal circuits. In one case, the courts found that the local government which neither owned nor operated the Philadelphia Airport was barred from imposing a landing fee at that airport. In the other case, the courts upheld the 21st Amendment and ruled that state liquor authorities could prohibit a major U.S. airline, USAirways, from serving alcohol on-board all flights to and from New Mexico.
As a Denver business lawyer, Cory Tipton looks at the USAirways case as one which has provided precedent in the 10th Circuit regarding the 21st Amendment and the authority of state liquor regulators. As those in the liquor industry are keenly aware, the USAirways’ decision is a victory for those who favor states’ rights with respect to alcohol regulation. Having this type of decision in the 10th Circuit is particularly notable because of the volume of brewers, both large and craft, who operate in Colorado and, therefore, within the jurisdiction of the 10th Circuit.
From an aviation law perspective, the USAirways’ decision raises potential logistical issues for any airline that operates within the state of New Mexico. Another interesting issue that this case spawns is the possibility that U.S. airlines will now be required to comply with the disparate and conflicting liquor laws and regulations of all fifty states.
The attorneys at The Tipton Law Firm will continue to watch how the issues develop with this release of this decision, and will also keep an eye to the Supreme Court to see what potential decisions come from that Court that may affect either the aviation industry or the liquor industry.
