Gabriel Invst v. Texas Alcoholic ( 2022 )

Case: 21-50322 Document: 00516369675 Page: 1 Date Filed: 06/24/2022
United States Court of Appeals
for the Fifth Circuit United States Court of Appeals
Fifth Circuit
FILED
June 24, 2022
No. 21-50322 Lyle W. Cayce
Clerk
In the Matter of Gabriel Investment Group,
Incorporated and Gabriel GP, Incorporated.
Debtors,
Gabriel Investment Group, Incorporated,
Appellant,
versus
Texas Alcoholic Beverage Commission,
Appellee.
Appeal from the United States District Court
for the Western District of Texas
USDC No. 5:20-CV-1244
Before King, Costa, and Willett, Circuit Judges.
Don R. Willett, Circuit Judge:
This Texas liquor law dispute poses a two-part question over the
scope of an exemption from a general prohibition on public corporations
owning package-store permits: Does Texas Alcoholic Beverage Code Section
22.16(f) “continue[] to exempt a public corporation if that corporation sells
some or all its shares to a non-exempt corporation, and, if so, whether the
Case: 21-50322 Document: 00516369675 Page: 2 Date Filed: 06/24/2022
No. 21-50322
exempt corporation can acquire additional package store permits”?1 We
certified to the Supreme Court of Texas,2 which swiftly and unanimously
answered both parts “yes.”3
That resolves this appeal.
Accordingly, we REVERSE the district court judgment and
REMAND for proceedings consistent with this opinion.
1
Gabriel Inv. Grp., Inc. v. Tex. Alcoholic Beverage Comm’n, No. 22-0062, 2022 WL
2183290, at *1 (Tex. June 17, 2022).
2
In re Gabriel Inv. Grp., Inc., 24 F.4th 503 (5th Cir. 2022).
3
2022 WL 2183290, at *1. The Court noted, though, that its answer came with
some caveats. Its “analysis assum[ed] GIG will remain the same, distinct public
corporation that qualified for the exemption in 1995” after it emerges from bankruptcy. See
id. at *17 n.9. It “[did] not comment on any other scenario or on other potential changes to
GIG that could interfere with its ongoing legal authority to hold package store permits.”
Id. (citation omitted).
2