Court Clears Path to Recoup ‘Tens of Millions of Dollars’ in Alcohol Handling Fees, Attorney Estimates

Types : In the News

The Pennsylvania Liquor Control Board may be on the hook for paying a class of plaintiffs millions of dollars, after the Pennsylvania Commonwealth Court ruled that claims that the board erroneously collected handling fees for its role as a middleman between alcohol vendors and customers weren’t time-barred.

On Thursday, the Pennsylvania Commonwealth Court denied the Pennsylvania Liquor Control Board’s claims that a class action seeking to recoup millions of dollars on behalf of bars and restaurants that were charged a handling fee for shipments of specialty wines ordered from vendors was time-barred by a six-month statute of limitations. The plaintiff, Log Cabin Property, led suit during the COVID-19 pandemic over the board’s practice of charging a handling fee for its role in the shipment of specialty orders.

John G. Papianou of Montgomery McCracken Walker & Rhoads in Philadelphia represents the plaintiff. Papianou estimates that the amount of handling fees allegedly wrongfully collected may exceed $50 million.

“This decision paves the way for the recovery of the tens of millions of dollars of handling fees that the PLCB unlawfully collected, and we’re going to continue fighting to have that money returned to those who were forced to pay it,” he said.

The litigation stems from the PLCB’s failure to implement direct delivery of special orders and its practice of charging a handling fee as a middleman between the alcohol vendors and customers.