Legal challenge to Beer Store abandoned
A budding Toronto entrepreneur has abandoned his challenge of the provincial legislation that gives the Beer Store a monopoly.
Michael Hassell, a lawyer and co-owner of Barge Craft Beer Distribution, a would-be independent retailer, said Monday he “obtained an external and expert legal opinion” on taking on the Liquor Control Act.
“The prospects of success are not good and it’s going to be too expensive,” Hassell said in an email.
“With a low chance of success and enormous costs, it is not feasible to ask people to fund the litigation. Therefore the court application will not continue,” he said.
Two weeks ago, Hassell had given the provincial government 60 days’ notice of an upcoming legal action before the Ontario Superior Court.
He had hoped the court would strike down the section of an Act dating back to 1927 that gives Brewers Retail — the formal name of the Beer Store — monopoly status as the only private firm allowed to sell beer to the public without brewing it on the premises.
His manoeuvring was separate from a $1.4-billion class-action lawsuit filed by Burlington pub owner David Hughes against the Beer Store and the Liquor Control Board of Ontario.
Hughes’ claim alleges a “conspiracy” between the breweries and the government that has not been proven in court.
He filed it on behalf of his pub, the Poacher, and “all persons in Canada who purchased beer in Ontario” since a June 2000 deal between the LCBO and the Beer Store.
That accord, first exposed by the Star last month, is also subject to a complaint to the federal Competition Bureau from Restaurants Canada, which represents 30,000 restaurateurs and bar owners.
Under the arrangement, the LCBO can sell only six-packs at its 639 outlets, leaving more lucrative 12- and 24-packs to be sold at 448 Beer Stores.
At the same time, bars and restaurants must buy directly from the Beer Store and pay higher prices than ordinary consumers.
Premier Kathleen Wynne’s government is expected to announce changes to the way beer is sold in Finance Minister Charles Sousa’s March budget.
