The Virginia Department of Alcoholic Beverage Control (VABC) confirmed the enforceability of arbitration clauses in distribution agreements between brewers and beer distributors under Virginia’s Beer Franchise Act (BFA).
In Loveland Distributing Co., Inc. and Premium of Virginia, LLC v. Bell’s Brewery, Inc., the VABC panel ruled unanimously in favor of compelling the parties to resolve their dispute through arbitration, as provided for in the parties’ distribution agreement (the Agreement).
The decision is good news overall for beer and wine suppliers hoping to avoid the cost of litigation before the VABC, says Marc E. Sorini, a partner who heads the alcoholic beverage practice at the McDemott Will & Emory law firm.