Libby Haines-marchel, Et Ano, App v. Wa State Liquor & Cannabis Board, Resp
75669-9
| Wash. Ct. App. | Dec 18, 2017Background
- In 2013 Rock Island Chronics LLC (Chronics), a single-member LLC owned by Libby Haines-Marchel, applied for a Washington retail marijuana license; the application listed her spouse Brock Marchel.
- WSLCB rules require a marijuana license be issued in the name of the true parties of interest; for an LLC that includes all members and their spouses, who must each submit personal/criminal-history forms.
- Brock disclosed after lottery selection that he was incarcerated for a homicide serving a long sentence; he did not submit a criminal-history form or fingerprints.
- WSLCB assigned 12 criminal-history points to Brock for a felony and issued a Statement of Intent to Deny Chronics’ license because an applicant with 8+ points is normally disqualified.
- Chronics argued Brock’s signed spousal renunciation made him not a true party of interest and asserted constitutional claims (right to marry, to pursue occupation, and due process); administrative and superior courts upheld WSLCB denial.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Whether WAC 314-55-035 violates right to marry (as-applied) | Haines-Marchel: rule penalizes her because of marital status; denial directly interferes with right to marry | WSLCB: rule does not bar marriage or place direct/substantial burden on marriage; it rationally regulates licensing | Court: not a direct substantial interference; rational-basis review applies and rule is rationally related to legitimate state interest; upheld |
| Whether denial violated right to pursue occupation / contract | Haines-Marchel: rule and denial deprive her of ability to work and enforce spousal renunciation | WSLCB: right to pursue occupation subject to reasonable regulation; renunciation is unilateral and lacks consideration/enforceability | Court: rational basis applies; rules are rationally related to state interest; renunciation not binding; upheld |
| Whether Chronics had property interest in license after lottery selection (due process) | Haines-Marchel: lottery selection conferred entitlement to license; denial deprived property without due process | WSLCB: license issuance discretionary under RCW 69.50.331; no vested right created by selection | Court: no protectable property interest; issuance discretionary; no due-process violation |
| Whether WSLCB exceeded statutory authority adopting WAC 314-55-035 and -040 | Chronics: rules inconsistent with statute and community property law; WSLCB overstepped | WSLCB: rules implement Initiative 502 and RCW 69.50.331/.342; consistent with liquor and gambling licensing schemes | Court: rules are within delegated authority, consistent with legislative purpose and existing regulatory schemes; upheld |
Key Cases Cited
- Gonzales v. Raich, 545 U.S. 1 (2005) (federal Controlled Substances Act classifies marijuana and supports federal prohibition framework)
- United States v. Oakland Cannabis Buyers' Coop., 532 U.S. 483 (2001) (federal law criminalizes distribution of marijuana)
- Obergefell v. Hodges, 135 S. Ct. 2584 (2015) (marriage is a fundamental right)
- Zablocki v. Redhail, 434 U.S. 374 (1978) (framework for assessing state interference with marriage)
- Amunrud v. Bd. of Appeals, 158 Wn.2d 208 (2006) (rational-basis review for occupational liberty claims)
- Spirits & Wine v. Wash. Liquor Control Bd., 182 Wn.2d 342 (2015) (agency rulemaking authority and deference principles)
- Tapper v. Emp't Sec. Dep't, 122 Wn.2d 397 (1993) (WAPA standards for judicial review of agency decisions)