REED DAY, ET AL V. BEN HENRY, ET AL

9th CircuitSep 5, 2025

Split Score

SplitScore: 76/100

Case Summary

Disposition

Affirmed

Arizona residents challenged the State’s requirement that only retailers with an in-state storefront and Arizona manager may ship wine directly to consumers, arguing it violates the dormant Commerce Clause. The Ninth Circuit affirmed summary judgment for the State, holding that even if the rule is discriminatory, it is an essential feature of Arizona’s constitutionally legitimate three-tier alcohol system and therefore permissible under § 2 of the Twenty-first Amendment.

Circuit Split Identified

Legal Issue

Whether a state may uphold a physical-presence requirement for alcohol retailers at step two of the Tennessee Wine test merely by characterizing it as an 'essential feature' of the three-tier system, without producing concrete public-health evidence.

Circuit Positions

3rd Circuit4th Circuit8th Circuit9th Circuit(this circuit)

Physical-presence requirement is an essential component of the three-tier system and therefore valid without additional evidentiary showing.

1st Circuit6th Circuit

Even essential components must be justified with concrete evidence that nondiscriminatory alternatives are inadequate; physical-presence requirement cannot be upheld per se.

Conflict Summary

The Third, Fourth, Eighth, and now Ninth Circuits uphold physical-presence requirements as per se valid because they are integral to a state’s three-tier alcohol regime, whereas the First and Sixth Circuits require the state to produce concrete, non-protectionist evidence that no reasonable nondiscriminatory alternative could achieve the same public-health or safety goals.

Parties & Counsel

Parties

Appellant:Reed Day and Albert Jacobs
Appellee:Ben Henry, Troy Campbell, Kris Mayes, and Wine and Spirits Wholesalers Association of Arizona

Legal Counsel

Appellant:Epstein Seif Porter & Beutel LLP; Zachar Law Firm PC
Appellee:Arizona Attorney General’s Office; Gallagher & Kennedy PA

Opinion Document