Beer distributors can be on common footing with their franchisee counterparts in bargaining with brewers or suppliers. Depending on the jurisdiction, distributors may have protection through beer distribution statutes patterned after relationship statutes adopted in many states to protect franchisees from their franchisors.

A Tacoma, Washington federal court has granted protection to distributors under the Washington Wholesale Supplier and Distributor Act (the "Act"), finding the Act does not authorize a beer supplier to terminate a distributor without cause, and finding that a terminated distributor is not limited to just the remedies in the Act.

Pabst Brewing Co. terminated its agreement with a distributor and arranged for someone else to service the former distributor's territories. The terminated distributor sued Pabst for its investment and lost profits, claiming the termination lacked cause and failure to give 60 days' written notice.

Pabst moved to dismiss, arguing that the Act's only remedy was compensation from the successor distributor for "laid-in cost of inventory" and "fair market value of the terminated distribution rights."

The court agreed with the terminated distributor, finding that both statutory and common law remedies can coexist. Thus, compensation to the terminated distributor did not have to come only from the successor distributor. The Act's purpose was not to create immunity for the supplier for its wrongdoing, or to pass off its liabilities to a successor. Pabst's motion to dismiss was denied.

See: Marine View Beverage, Inc. v. Pabst Brewing Co., LLC, W.D. Wash., 15,984