Wine and spirit buyers may receive tens of millions in refunds from the Pennsylvania Liquor Control Board.

The Pennsylvania Liquor Control Board (PLCB) faces a significant setback in its ongoing legal challenges, following a recent ruling from the Commonwealth Court that advances the possibility of refunding approximately million in handling fees to customers of its special liquor order system. This development emerges from a five-year court battle that began when the PLCB was found to have collected unlawful fees from consumers amid delays in implementing mandated direct wine and spirit shipping services.

On August 21, the Commonwealth Court dismissed the PLCB’s argument that a lawsuit filed by affected customers had exceeded the statute of limitations. This lawsuit pertains to the special liquor order (SLO) system, which was designed to allow consumers, including restaurants and bars, to order products not available in state-run Fine Wine & Good Spirits stores. While state legislation approved in 2016 required the PLCB to roll out a direct shipping system by June 2017, implementation did not occur until June 2022. During the interim, the PLCB charged a handling fee of .75 per 750 ml bottle for products collected from PLCB storefronts or warehouses.

The legal actions were initiated in 2020, catalyzed in part by restrictions imposed during the pandemic which temporarily shuttered state-owned stores while increasing customer demand for home delivery. The plaintiffs argue that from June 2017 to June 2022, the PLCB unlawfully collected millions in handling fees, contravening state law that prohibits such charges on direct deliveries.

Despite the PLCB’s repeated attempts to dispute the charges in court, it has consistently lost its cases, including a 5-0 decision by the Pennsylvania Supreme Court last year affirming the Commonwealth Court’s ruling that the agency could indeed be held accountable for failing to comply with state law. The high court rejected claims of sovereign immunity, determining that the PLCB could be considered a “person” under legal definitions.

Given the recent Commonwealth Court ruling, the plaintiffs’ legal team aims to achieve class-action status for all individuals who paid the handling fee during the applicable time period, with estimates suggesting that the collective amount owed to customers could exceed million. Attorney John G. Papianou expressed disappointment at the PLCB’s refusal to refund the collected fees, describing the situation as unjust to Pennsylvania citizens.

Currently, the timeline for resolution of the case remains uncertain, as the legal team intends to request a management conference for class certification with the Commonwealth Court in the coming weeks. Among the named plaintiffs are Log Cabin, a restaurant in Lancaster County, and MFW Wine Company, a wine brokerage located in suburban Philadelphia.

As the case progresses, the ramifications for the PLCB and Pennsylvania consumers alike could be substantial, particularly as the state agency continues to grapple with the complexities of compliance and consumer trust in its operational practices. Media News Source will continue to monitor developments in this significant legal matter that affects numerous Pennsylvanians.