Opinion
Thе present case involves an action by the plaintiffs, Eder Brothers, Inc., Alan S. Goodman, Inc., Brescóme Barton, Inc., Mid State Distributors, LLC, Hartley and Parker, Inc., and Connecticut Distributors, Inc., who are wholesale wine distributors, against the defendant, Wine Merchants of Connecticut, Inc., a competitor in the wholesale wine distribution business, seeking money damages and injunctive relief on the ground that certain of the defendant’s practices violate the Liquor Control Act, General Statutes § 30-1 et seq., and the Connecticut Unfair Trade Practices Act (CUTPA), General Statutes § 42-110a et seq. Specifically, the plaintiffs alleged that the defendant’s practice of shrink-wrapping 180 bottles of 1.5 liter Redwood Creek brand wine on a pallet, surrounding the bottles with cardboard, and thеn posting a “jumbo case” per bottle sale price with the department of consumer protection (department) when the palletized case was not a “case,” as that term is defined by General Statutes § 30-1 (6),
1
constituted an illegal offering of quantity
discounts in violation of General Statutes § 30-94 (a).*
2
Additionally, the plaintiffs alleged that, because the defendant offered the
The defendant moved to dismiss the action on four grounds: (1) the trial court lacked personal jurisdiction over the defendant because of untimely service of process; (2) the plaintiffs lacked standing to bring the action; (3) the department has exclusive jurisdiction over alleged violations of liquor control statutes; and (4) the plaintiffs had failed to exhaust administrative remedies available through the department. The trial court rendered judgment dismissing the action on the second and third grounds raised, concluding that “regardless of the interest of the plaintiffs as competitors of the defendant, the plaintiffs lack standing to maintain this action because there is no statute that permits them to sue the defendant for violation of the liquor pricing laws. Enforcement of these statutes in a civil context lies solely with the [department]. Moreover, couching their claim as one under [CUTPA] does not save thеir claim, since the claimed violations are ones that arise under the liquor pricing laws, over which the legislature has determined that the [department] shall have exclusive jurisdiction.” The plaintiffs then appealed from the judgment of the trial court to the Appellate Court, and we transferred the appeal to this court pursuant to General Statutes § 51-199 (c) and Practice Book § 65-1.
I
The plaintiffs’ claims both implicate the issue of standing. We begin, therefore, with our well settled principles dictating the nature of that inquiry. “The issue of standing implicates this court’s subject matter jurisdiction.”
Fish Unlimited
v.
Northeast Utilities Service Co.,
Standing is established by showing that the party claiming it is authorized by statute to bring an action, in other words statutorily aggrieved, or is classically aggrieved.
Steeneck
v.
University of Bridgeport,
supra,
II
We first address the plaintiffs’ claim that the trial court improperly determined that they lacked standing to bring a private right of action for claimed violations of the Liquor Control Act. The plaintiffs claim that the statutory framework governing conduct of wine distributors under that act demonstrates that thе legislature intended to confer upon them standing to challenge the alleged violations. The defendant contends that the enforcement of the Liquor Control Act is vested exclusively within the department and that no private right of action to enforce its provisions exists. We agree with the defendant.
Although the plaintiffs do not state expressly the ground on which they assert standing, their claim— that the statutory framework of the Liquor Control Act demonstrates that the legislature intended to create a private cause of action conferring standing upon them to challenge the claimed violations—sounds in statutory aggrievement. 5 The issue, therefore, is whether the Liquor Control Act establishes standing for the plaintiffs in their capacities as competitors by creating an arguably protected interest, within the meaning of the statute. We disagree that the statute confers such a right.
Whether the plaintiffs are statutorily aggrieved under the Liquor Control Act is a question of statutory interpretation.
Carmel Hollow Associates Ltd. Partnership
v.
Bethlehem,
The allegations of the plaintiffs’ complaint with regard to the Liquor Control Act are predicated on violations of § § 30-64a and 30-94 (a). Section 30-64aprovides: “Notwithstanding any provision of the general statutes or any regulations issued pursuant thereto to the contrary, a wholesaler, who sells any product or is authorized to sell any product by this chapter, shall sell such product to each retail permittee in the wholesaler’s geographic territory who desires to purchase such product. Such wholesaler shall not charge any retail permit-tee, to whom the wholesaler is required to sell by virtue of this section, a different rate for the dеlivery or transportation of any alcoholic liquor than such wholesaler would charge any other retail permittee. Where distance, road conditions, travel time or any such factor substantially affects the cost of delivery or transportation of a product sold by a wholesaler, the wholesaler shall file a schedule of proposed delivery charges with the [department]. Such schedule shall only apply after
a healing by and upon written approval from said department.” Section 30-94 (a) provides: “No permittee or group of permittees licensed under the provisions of this chapter, in any transaction with another permit-tee or group of permittees, shall directly or indirectly offer, furnish or receive any free goods, gratuities, gifts, prizes, coupons, premiums, combination items, quantity prices, cash returns, loans, discounts, guarantees, special prices or other inducements in connection with the sale of alcoholic beverages or liquors. No such permit-tee shall require any purchaser to accept additional alcoholic liquors in order to make a purchase of any other alcoholic liquor.” It is evident that these two statutes simply prescribe certain conduct by distributors and do not expressly authorize any private enforcement mechanism. Indeed, the only provision in the Liquor Control Act that expressly does authorize a private right of action is General Statutes § 30-102, more commonly known as the Drаm Shop Act.
6
See
Craig
v.
Driscoll,
The legislative history of §§ 30-6 and 30-6a similarly indicates an intеnt to vest exclusive control with the department. Number 80-482, § 191, of the 1980 Public Acts (P.A. 80-482), established the division of liquor control as an independent department, and No. 95-195 of the 1995 Public Acts (P.A. 95-195) substituted the department of consumer protection for the department of liquor control as the body charged with enforcing the Liquor Control Act. In discussing P. A. 80-482, Repre
sentative John J. Zajac, Jr., stated: “All one has to do is really look at the liquor statutes and all its regulations, many of which we debate here each and every year, whether we agree with some and disagree with others, we would have to all admit that its all encompassing under one [cjommission and one [rjegulatory [a]gency.” 23 H.R. Proc., Pt. 17, 1980 Sess., p. 5068. In explaining the purpose and benefit of P.A. 95-195 in committee hearings, Mark Shiffrin, the cоmmissioner of consumer protection, elaborated on the duties of the department of liquor control, soon to be transferred to the department of consumer protection: “The [djepartment of [ljiquor [cjontrol is responsible for the protection of public health and safety through the regulation and control of liquor. Specific responsibilities that directly are analogous to those of the [djepartment of [cjonsumer [pjrotection, are determining the suitability of applicants and premises . . . upon the receipt of liquor license applications.
The investigation and adjudication of alleged violations, and preventing fraud and unfair trade or illegal trade practices. . . .
[Sjimilar functions . . . are performed by the [djepartment of [cjonsumer [pjrotection for a wider range of product services and activities. This is a sensible consolidation of functions.” (Emphasis added.) Conn. Joint Standing Committee Hearings, General Law, Pt. 3, 1995 Sess., p. 798. The absence of any discussion of private enforcement by way of private
Moreover, the plaintiffs seek to establish standing
in their capacities as competitors
and, therefore, must establish that the Liquor Control Act created an arguably protected interest for such a class. Although the legislative history of §§ 30-64a and 30-94 also is silent with respect to private rights of action, this court previously has evaluated the purpose of these statutes and other provisions within the Liquor Control Act that bear on this issue. This court previously has stated that a primary purpose of regulating pricing practices within the liquor industry is to prevent unfair competition, but the court further has determined that the reason for preventing that competition is because of the potential harm to the public.* ******
8
See
Slimp
v.
Dept. of Liquor Control,
These cases establish that, although the Liquor Control Act forbids certain pricing practices that could be harmful to wholesalers, the purpose of preventing that economic harm is to prevent the resulting harm that could befall the public. Thus, there is nothing in the Liquor Control Act reflecting that it is was intended to protect individual plaintiffs in their capacity as competitors. Accordingly, for all of the foregoing reasons, we conclude that, absent express language authorizing a private right of action, the Liquor Control Act does not convey a private right of action, and that the plaintiffs cannot, as a matter of law, establish statutory aggrievement pursuant to that act. 9
Ill
The trial court also determined that the plaintiffs lacked standing to bring a CUTPA
Our jurisprudence regarding CUTPA is well settled. It is “remedial in character . . . and must be liberally construed in favor of those whom the legislature intended to benefit.” (Citations omitted; internal quotation marks omitted.)
Fink
v.
Golenbock,
Our court previously has evaluated a situation, much like the present case, wherein the plaintiffs had brought a CUTPA claim alleging unfair trade practices by virtue of a violation of another statute that the defendant contended did not convey a private right of action. See
Macomber v. Travelers Property & Casualty Corp.,
In this opinion the other justices concurred.
Notes
General Statutes § 30-1 provides in relevant part: “For the interpretation of this chapter, unless the context indicates a different meaning . . .
“(6) (A) ‘Case price’ means the price of a container of cardboard, wood or other material, containing units of the same size, brand, age and proof of alcoholic liquor, and (B) a case of alcoholic liquor, other than beer, cordials, cocktails, wines and prepared mixed drinks, shall be in the number and quantity of units or bottles as follows: Three gallon bottles; four gallon bottles; six half-gallon bottles; twelve quart bottles or twelve liter bottles; twelve one-fifth gallon bottles or twelve seven hundred fifty milliliter bottles; twenty-four рint bottles; twenty-four one-tenth gallon bottles or six and four-tenths ounce bottles or twenty-four three hundred seventy-five milliliter bottles or forty-eight one hundred eighty-seven and one-half milliliter bottles; ninety-six one hundred milliliter bottles; forty-eight half-pint bottles, or two hundred forty-one and one-half ounce, one and six-tenths ounce and two ounce bottles or ninety-six ninety-three and seven-tenths milliliter bottles or one hundred ninety-two forly-six and eight-tenths milliliter bottles. . . .”
General Statutes § 30-94 provides: “(a) No permittee or group of permit-tees licensed under the provisions of this chapter, in any transaction with another permittee or group of permittees, shall directly or indirectly offer, furnish or receive any free goods, gratuities, gifts, prizes, coupons, premiums, combination items, quantity prices, cash returns, loans, discounts, guarantees, special prices or other inducements in connection with the sale of alcoholic beverages or liquors. No such permittee shall require any purchaser to accept additional alcoholic liquors in order to make a purchase of any other alcoholic liquor.
“(b) Notwithstanding the provisions of subsection (a) of this section and subsection (b) of section 30-63, a holder of a manufacturer permit issued under subsection (a) of section 30-16 or an out-of-state shipper’s permit for alcoholic liquor other than beer issued under section 30-18 may offer and provide to a holder of a wholesaler permit issued under subsection (a) of section 30-17 a floor stoсk allowance or a depletion allowance, or both, with the prior approval of the department. Such allowances shall be offered and provided on a nondiscriminatory basis to all such wholesaler permittees authorized to distribute the products of any such manufacturer or out-of-state shipper permittee in accordance with such requirements as the department may prescribe by regulation adopted under chapter 54, provided (1) no such manufacturer or out-of-state shipper permittee may require any such wholesaler permittee to participate in any program providing such allowances, and (2) the rate or percentage used to calculate any such allоwance may not vary based on the quantity of alcoholic liquor other than beer that is sold. As used in this subsection, ‘floor stock allowance’ means any rebate, discount or other inducement that is given to a wholesaler permittee to be used for the sales promotion or the destruction of any alcoholic liquor other than beer that is stored in the wholesaler permittee’s warehouse or other storage facilities at the time such rebate, discount or other inducement is given, and ‘depletion allowance’ means any rebate, discount or other inducement used for the sales promotion of any alcoholic liquor other than beer that is given to a wholesaler permittee based on the amount of such alcoholic liquor subject to such promotion that is sold at wholesale by the wholesaler permittee.”
General Statutes § 30-64a provides: “Notwithstanding any provision of the general statutes or any regulations issued pursuant thereto to the contrary, a wholesaler, who sells any product or is authorized to sell any product by this chapter, shall sell such product to each retail permittee in the wholesaler’s geographic territory who desires to purchase such product. Such wholesaler shall not charge any retail permittee, to whom the wholesaler is required to sell by virtue of this section, a different rate for the delivery or transportation of any alcoholic liquor than such wholesaler would charge any other retail permittee. Where distance, road conditions, travel time or any such factor substantially affects the cost of delivery or transportation of a product sold by a wholesaler, the wholesaler shall file a schedule ofproposed delivery charges with the [department]. Such schedule shall only apply after a hearing by and upon written approval from said department.”
General Statutes § 42-110b provides: “(a) No person shall engage in unfair methods of competition and unfair or deceptive acts or practices in the conduct of any trade or commerce.
“(b) It is the intent of the legislature that in construing subsection (a) of this section, the commissioner [of consumer protection] and the courts of this statе shall be guided by interpretations given by the Federal Trade Commission and the federal courts to Section 5(a)(1) of the Federal Trade Commission Act (15 USC 45[a][l]), as from time to time amended.
“(c) The commissioner may, in accordance with chapter 54, establish by regulation acts, practices or methods which shall be deemed to be unfair or deceptive in violation of subsection (a) of this section. Such regulations shall not be inconsistent with the rules, regulations and decisions of the [FJederal [T]rade [CJommission and the federal courts in interpreting the provisions of the Federal Trade Commission Act.
“(d) It is the intention of the legislature that this chapter be remedial and be so construed.”
Even if we were to assume, arguendo, that the gravamen of the plаintiffs’ claim rests not on statutory aggrievement, but rather, on the basis of classical aggrievement by virtue of the defendant’s failure to comply with the Liquor Control Act, “we consider the purpose of [that act], as reflected in [its] language and legislative history” to determine whether they satisfy that doctrine’s requirements.
Edgewood Village, Inc.
v.
Housing Authority,
General Statutes § 30-102 provides in relevant part: “If any person, by such person or such person’s agent, sells any alcoholic liquor to an intoxicated person, and such purchaser, in consequence of such intoxication, thereafter injures the person or property of another, such seller shall pay just damages to the person iryured, up to the amount of two hundred fifty thousand dollars ... to be recovered in an action under this section . . . .”
We note that the plaintiffs cite multiple provisions within the Liquor Control Act that allow criminal penalties to be sought and levied by the police, the state’s attorney, and the Superior Court, for the proposition that the department is not the sole enforcer of that act. See General Statutes § § 30- 101, 30-105, 30-106,30-107,30-113 and 30-115. Although these provisions do afford certain enforcement powers to the police, the state’s attorney, and the Superior Court, those powers only allow those parties to enforce the Liquor Control Act in the criminal context. In the present case, the plaintiffs seek to enforce the Liquor Control Act in a private, civil action. The mere fact that the department shares enforcement рower under the Liquor Control Act for criminal purposes does not alter the department’s exclusive jurisdiction over alleged violations of that act that are purely civil in nature.
In
Schieffelin & Co.
v.
Dept. of Liquor Control,
Although the plaintiffs rely on
Napoletano
v.
CIGNA Healthcare of Connecticut, Inc.,
We note thаt the defendant contends, as alternate grounds for affirming the trial court’s judgment, that the plaintiffs failed to exhaust their administrative remedies and failed to join the department as an indispensable party. These claims are without merit. With respect to the first claim, the plaintiffs have no administrative remedy with respect to their CUTPA count because the department does not have jurisdiction over this claim, and it must be brought in the trial court. See General Statutes § 42-110g. With respect to the second claim, we note that “[pjarties have been termed indispensable when their interest in the controversy is such that a final decree cannot be made without either affecting that interest or leaving the controversy in such condition that its final disposition may be inconsistent with equity and good conscience.” (Internal quotation marks omitted.)
Hilton
v.
New Haven,
