Rep. Will Guzzardi

Filed: 3/12/2019





10100HB3442ham001LRB101 08869 JLS 56655 a


2    AMENDMENT NO. ______. Amend House Bill 3442 by replacing
3everything after the enacting clause with the following:
4    "Section 5. The Beer Industry Fair Dealing Act is amended
5by changing Sections 1.1, 2, 3, 4, 6, 7, 8, and 9 and by adding
6Section 8.5 as follows:
7    (815 ILCS 720/1.1)  (from Ch. 43, par. 301.1)
8    Sec. 1.1. As used in this Act:
9    (1) "Beer" means a beverage obtained by the alcoholic
10fermentation of an infusion or concoction of barley, or other
11grain, malt, and hops in water, and includes, among other
12things, beer, ale, stout, lager beer, porter, all beverages
13brewed or fermented wholly or in part from malt products, and
14the like; and for purposes of this Act only, the term "beer"
15shall also include malt beverage products containing less than
16one-half of 1% of alcohol by volume and marketed for adult



10100HB3442ham001- 2 -LRB101 08869 JLS 56655 a

1consumption as an alternative beverage to beer.
2    (2) "Agreement" means any contract, agreement,
3arrangement, operating standards, or amendments to a contract,
4agreement, arrangement, or operating standards, the effect of
5which is to substantially change or modify the existing
6contract, agreement, arrangement, or operating standards,
7whether expressed or implied, whether oral or written, for a
8definite or indefinite period between a brewer and a wholesaler
9pursuant to which a wholesaler has been granted the right to
10purchase, resell, and distribute as wholesaler or master
11distributor any brand or brands of beer offered by a brewer.
12The agreement between a brewer or craft brewer and wholesaler
13shall not be considered a franchise relationship.
14    (3) "Wholesaler" or "beer wholesaler" means any person,
15other than a manufacturer licensed under the Liquor Control Act
16of 1934, who is engaged in this State in purchasing, storing,
17possessing or warehousing beer any alcoholic liquors for resale
18or reselling at wholesale, whether within or without this
20    (4) "Brewer" means a person who is engaged in the
21manufacture of 3,720,000 or more gallons of beer, a master
22distributor as defined in this Section, a successor brewer as
23defined in this Section, a non-resident dealer under the
24provisions of the Liquor Control Act of 1934, a foreign
25importer under the provisions of the Liquor Control Act of
261934, or a person who owns or controls the trademark, brand, or



10100HB3442ham001- 3 -LRB101 08869 JLS 56655 a

1name of beer.
2    (4.4) "Craft brewer" means a person licensed to manufacture
3beer or who owns or controls the trademark, brand, or name of
4beer or enters into a written agreement for the manufacture of
5less than 3,720,000 gallons of beer under a license, contract,
6or other written agreement.
7    (4.5) "Brand" means any word, name, group of letters,
8symbols, or any combination thereof that is adopted and used by
9a brewer or craft brewer to identify a specific beer product
10and to distinguish that beer product from another beer product.
11    (4.7) "Brand extension" means any brand that incorporates
12all or a substantial part of the features of a pre-existing
13brand of the same brewer or craft brewer and that relies to a
14significant extent on the good will associated with the
15pre-existing brand.
16    (5) "Master Distributor" means a person who, in addition to
17being a wholesaler, acts in the same or similar capacity as a
18brewer or outside seller of one or more brands of beer to other
19wholesalers on a regular basis in the normal course of
21    (6) "Successor wholesaler Brewer" means any person who in
22any way obtains the distribution rights that a wholesaler
23brewer, non-resident dealer, foreign importer, or master
24distributor once had to manufacture or distribute a brand or
25brands of beer whether by merger, purchase of corporate shares,
26purchase of assets, purchase of brand rights, or any other



10100HB3442ham001- 4 -LRB101 08869 JLS 56655 a

1arrangement, including but not limited to any arrangements
2transferring the ownership or control of the trademark, brand
3or name of the brand.
4    (7) "Person" means a natural person, partnership,
5corporation, trust, agency, or other form of business
6enterprise. Person also includes heirs, assigns, personal
7representatives and guardians.
8    (8) "Territory" or "sales territory" means the exclusive
9geographic area of primary sales responsibility designated by
10the agreement between a wholesaler and brewer or craft brewer
11for any brand, brands, or brand extensions of the brewer. The
12"territory" or "sales territory" designated by the agreement
13may not be designated by address or specific location unless
14such specific address or location is part of a general and
15broad territory or sales territory description. The
16designation of a territory or sales territory in violation of
17this subsection is prohibited by this Act and deemed
19    (9) "Good cause" exists if the wholesaler or affected party
20has failed to comply with essential and reasonable requirements
21imposed upon the wholesaler or affected party by the agreement.
22The requirements may not be discriminating either by their
23terms or in the methods of their enforcement as compared with
24requirements imposed on other similarly situated wholesalers
25by the brewer or craft brewer. The requirements may not be
26inconsistent with this Act or in violation of any law or



10100HB3442ham001- 5 -LRB101 08869 JLS 56655 a

2    (10) "Good faith" means honesty in fact and the observance
3of reasonable commercial standards of fair dealing in the trade
4as defined and interpreted under Section 2-103 of the Uniform
5Commercial Code.
6    (11) "Reasonable standards and qualifications" means those
7criteria applied by the brewer or craft brewer to similarly
8situated wholesalers during a period of 24 months before the
9proposed change in manager or successor manager of the
10wholesaler's business.
11    (12) "Affected party" means a wholesaler, brewer, craft
12brewer, master distributor, successor brewer, or any person
13that is a party to an agreement.
14    (13) "Signs" means signs described in Section 6-6 of the
15Liquor Control Act of 1934.
16    (14) "Advertising materials" means advertising materials
17described in Section 6-6 of the Liquor Control Act of 1934.
18(Source: P.A. 98-843, eff. 1-1-15.)
19    (815 ILCS 720/2)  (from Ch. 43, par. 302)
20    Sec. 2. Purposes. The purposes and scope of this Act are:
21    (A) This Act is promulgated pursuant to authority of the
22State under the provisions of the Twenty-First Amendment to the
23United States Constitution to promote the public's interest in
24fair, efficient and competitive distribution of malt beverage
25products by regulation and encouragement of brewer, craft



10100HB3442ham001- 6 -LRB101 08869 JLS 56655 a

1brewer, and wholesaler vendors to conduct their business
2relations toward these ends by:
3        (i) assuring the beer wholesaler, brewer, and craft
4    brewer is free to manage its business enterprise, including
5    the brewer's or craft brewer's right to negotiate and
6    independently establish its selling prices and the
7    wholesaler's right to independently establish its selling
8    prices; and
9        (ii) assuring the brewer, craft brewer, and the public
10    of service from wholesalers who will devote reasonable
11    efforts and resources to sales and distribution of all the
12    brewer's or craft brewer's products, which wholesaler has
13    been granted the right to sell and distribute and maintain
14    satisfactory sales levels to the satisfaction of the brewer
15    or craft brewer.
16    (B) This Act shall be incorporated into and shall be deemed
17a part of every agreement between brewers or craft brewers and
18wholesalers and shall govern all relations between brewers and
19their wholesalers to the full extent consistent with the
20constitutions and laws of this State and the United States and
21any provision of this Act shall supersede any conflicting
22provision of the agreement. Notwithstanding the foregoing,
23wholesalers, brewers, and craft brewers may, upon mutual
24written agreement, agree to waive the provisions of this Act as
25it may apply to the agreement.
26(Source: P.A. 96-662, eff. 8-25-09.)



10100HB3442ham001- 7 -LRB101 08869 JLS 56655 a

1    (815 ILCS 720/3)  (from Ch. 43, par. 303)
2    Sec. 3. Termination and notice of cancellation.
3    (1) Except as provided in subsection (3) of this Section
4and in Section 8.5, no brewer or beer wholesaler may cancel,
5fail to renew, or otherwise terminate an agreement unless the
6brewer or wholesaler furnishes prior notification to the
7affected party in accordance with subsection (2).
8    (2) The notification required under subsection (1) shall be
9in writing and sent to the affected party by certified mail not
10less than 30 90 days before the date on which the agreement
11will be cancelled, not renewed, or otherwise terminated. The
12notification shall contain (a) a statement of intention to
13cancel, failure to renew, or otherwise terminate an agreement,
14(b) a complete statement of reasons therefore, including all
15data and documentation necessary to fully apprise the
16wholesaler of the reasons for the action, and (c) the date on
17which the action shall take effect.
18    (3) A brewer or craft brewer may cancel, fail to renew, or
19otherwise terminate an agreement without furnishing any prior
20notification for any of the following reasons:
21        (A) Wholesaler's failure to pay any account when due
22    and upon demand by the brewer for such payment, in
23    accordance with agreed payment terms.
24        (B) Wholesaler's assignment for the benefit of
25    creditors, or similar disposition, of substantially all of



10100HB3442ham001- 8 -LRB101 08869 JLS 56655 a

1    the assets of such party's business.
2        (C) Insolvency of wholesaler, or the institution of
3    proceedings in bankruptcy by or against the wholesaler.
4        (D) Dissolution or liquidation of the wholesaler.
5        (E) Wholesaler's conviction of, or plea of guilty or no
6    contest, to a charge of violating a law or regulation, in
7    this State which materially and adversely affects the
8    ability of either party to continue to sell beer in this
9    State, or the revocation or suspension of a license or
10    permit to sell beer in this State.
11        (F) Any attempted transfer of business assets of the
12    wholesaler, voting stock of the wholesaler, voting stock of
13    any parent corporation of the wholesaler, or any change in
14    the beneficial ownership or control of any entity without
15    obtaining the prior consent or approval as provided for
16    under Section 6 unless the brewer or craft brewer neither
17    approves, consents to, nor objects to the transfer within
18    60 days after receiving all requested information from the
19    wholesaler regarding the proposed purchase, in which event
20    the brewer shall be deemed to have consented to the
21    proposed transaction.
22        (G) Fraudulent conduct by the wholesaler in its
23    dealings with the brewer.
24        (H) Malfeasance, misfeasance, or a material
25    misrepresentation made by the wholesaler to the brewer.
26        (I) Conduct or acts by the wholesaler that cause damage



10100HB3442ham001- 9 -LRB101 08869 JLS 56655 a

1    within the marketplace to the brewer's trademark, name,
2    brand, reputation, or the products sold by the wholesaler.
3        (J) An intentional breach by the wholesaler of the
4    provisions of this Act or the provisions of the
5    wholesaler's Agreement with a brewer.
6(Source: P.A. 88-410; revised 10-9-18.)
7    (815 ILCS 720/4)  (from Ch. 43, par. 304)
8    Sec. 4. Cancellation. No brewer, craft brewer, or beer
9wholesaler may cancel, fail to renew or otherwise terminate an
10agreement unless the party intending that action has good cause
11for the cancellation, failure to renew or termination, except
12as provided for in Section 8.5, has made good faith efforts to
13resolve disagreements, and, in any case in which prior
14notification is required under Section 3 or as provided for in
15Section 8.5, the party intending to act has furnished the prior
16notification and the affected party has not eliminated the
17reasons specified in the notification for cancellation,
18failure to renew, or termination, within 30 90 days after the
19sending of the notification. Wholesalers, brewers, and craft
20brewers may agree, in writing, to extend the period for
21resolution of the causes for termination beyond 30 days.
22(Source: P.A. 82-946; 86-1485.)
23    (815 ILCS 720/6)  (from Ch. 43, par. 306)
24    Sec. 6. Transfer of business assets or stock.



10100HB3442ham001- 10 -LRB101 08869 JLS 56655 a

1    (1) No brewer, craft brewer, or wholesaler shall
2unreasonably withhold or delay its approval of any assignment,
3sale, or transfer of the stock of a wholesaler, brewer, or
4craft brewer or all or any portion of a wholesaler's, brewer's,
5or craft brewer's assets, wholesaler's, brewer's, or craft
6brewer's voting stock, the voting stock of any parent
7corporation, or the beneficial ownership or control of any
8other entity owning or controlling wholesaler, brewer, or craft
9brewer, including the wholesaler's rights and obligations
10under the terms of an agreement whenever the person or persons
11to be substituted meet reasonable standards. Upon the death of
12one of the partners of a partnership operating the business of
13a wholesaler, brewer, or craft brewer, no brewer, craft brewer,
14or wholesaler shall deny the surviving partner or partners of
15such partnership the right to become a successor-in-interest to
16the agreement between the brewer, craft brewer, or wholesaler
17and such partnership, provided that the survivor has been
18active in the management of the partnership and is otherwise
19capable of carrying on the business of the partnership.
20    (2) Notwithstanding the provisions of subsection (1), upon
21the death of a wholesaler, no brewer or craft brewer shall deny
22approval for any transfer of ownership to a surviving spouse or
23adult child of an owner of a wholesaler; provided, however,
24that such subsequent transfers of such ownership by such
25surviving spouse or adult child shall thereafter be subject to
26the provisions of subsection (1).



10100HB3442ham001- 11 -LRB101 08869 JLS 56655 a

1(Source: P.A. 82-946.)
2    (815 ILCS 720/7)  (from Ch. 43, par. 307)
3    Sec. 7. Reasonable compensation.
4    (1) Subject to the right of any party to an agreement to
5pursue any remedy provided in Section 9 or subject to the
6provisions of Section 8.5, any brewer or craft brewer that
7cancels, terminates or fails to renew any agreement, or
8unlawfully denies approval of, or unreasonably withholds
9consent, to any assignment, transfer or sale of a wholesaler's
10business assets or voting stock or other equity securities,
11except as provided in this Act, shall pay the wholesaler with
12which it has an agreement pursuant to this Act reasonable
13compensation for the fair market value of the wholesaler's,
14brewer's, or craft brewer's business with relation to the
15affected brand or brands. The fair market value of the
16wholesaler's business shall include, but not be limited to, its
17goodwill, if any.
18    (1.5) The provisions of this subsection (1.5) shall only
19apply if the brewer or craft brewer agrees to pay reasonable
20compensation, as defined in subsection (1), and the total
21annual volume of all beer products supplied by the a brewer or
22craft brewer to a wholesaler pursuant to agreements between
23such brewer and wholesaler represents 10% or less of the total
24annual volume of the wholesaler's business for all beer
25products supplied by all brewers and craft brewers. For



10100HB3442ham001- 12 -LRB101 08869 JLS 56655 a

1purposes of this subsection (1.5) only, "annual volume" means
2the volume of beer products sold by the wholesaler in the
312-month period immediately preceding receipt of the brewer's
4written offer pursuant to this subsection (1.5).
5    If a brewer or craft brewer is required to pay reasonable
6compensation as described in subsection (1) and the question of
7reasonable compensation is the only issue between the parties,
8the brewer or craft brewer shall, in good faith, make a written
9offer to pay reasonable compensation. The wholesaler shall have
1030 days from receipt of the written offer to accept or reject
11the brewer's or craft brewer's offer. Failure to respond, in
12writing, to the written offer shall constitute rejection of the
13offer to pay reasonable compensation. If the wholesaler, in
14writing, accepts the written offer, the wholesaler shall
15surrender the affected brand or brands to the brewer or craft
16brewer at the time payment is received from the brewer or craft
17brewer. If the wholesaler does not, in writing, accept the
18brewer's or craft brewer's written offer, the rejecting party
19must submit a counter offer to the brewer or craft brewer
20within 30 days after receipt of the original written offer.
21Failure to submit a counter offer constitutes an acceptance of
22the original offer and constitutes a binding waiver of the
23arbitration proceedings as specified in this Section.
24    If the parties to an agreement subject to this Act fail to
25agree on the amount of reasonable compensation, either party
26may elect to submit the determination of reasonable



10100HB3442ham001- 13 -LRB101 08869 JLS 56655 a

1compensation to expedited binding arbitration. If one party
2notifies the other party in writing that it elects expedited
3binding arbitration, the other party has 10 days from receipt
4of the notification to elect expedited binding arbitration or
5to reject the arbitration in writing. Failure to elect
6arbitration shall constitute rejection of the offer to
8        (A) If the parties agree to expedited binding
9    arbitration, the arbitration shall be subject to the
10    expedited process under the commercial rules of the
11    American Arbitration Association. The arbitration shall be
12    concluded within 90 days after the parties agree to
13    expedited binding arbitration under this Section, unless
14    extended by the arbitrator or one of the parties. The
15    wholesaler shall retain the affected brand or brands during
16    the period of arbitration, at the conclusion of which the
17    wholesaler shall surrender the affected brand or brands to
18    the brewer upon payment of the amount determined to be
19    reasonable compensation, provided the wholesaler shall
20    transfer the affected brand or brands to the brewer after
21    90 days if the arbitration proceedings are extended beyond
22    the 90 day limit at the request of the wholesaler.
23    Arbitration costs shall be paid one-half by the wholesaler
24    and one-half by the brewer. The award of the arbitrator
25    shall be final and binding on the parties.
26        (B) If the brewer, craft brewer, or wholesaler elects



10100HB3442ham001- 14 -LRB101 08869 JLS 56655 a

1    expedited binding arbitration, but the wholesaler, brewer,
2    or craft brewer rejects the offer to arbitrate:
3            (i) The wholesaler may accept, in writing, any
4        written offer previously made by the brewer. If the
5        wholesaler selects this option, the wholesaler must
6        surrender the affected brand or brands to the brewer at
7        the time payment is received. If the wholesaler
8        believes that the amount paid by the brewer or craft
9        brewer is less than reasonable compensation under
10        subsection (1), the wholesaler may bring a proceeding
11        under subsection (2) for the difference, but may not
12        proceed under subsection (3) of Section 9; or
13            (ii) The wholesaler, brewer, or craft brewer may
14        proceed against the brewer, craft brewer, or
15        wholesaler under Section 9, provided the wholesaler
16        must surrender the affected brand or brands to the
17        brewer if a proceeding under Section 9 has not been
18        initiated within 90 days after the wholesaler rejects
19        the offer to arbitrate. Upon determination of
20        reasonable compensation pursuant to Section 9, the
21        brewer shall pay the wholesaler the amount so
22        determined. Until receiving payment from the brewer of
23        the amount so determined, the wholesaler shall retain
24        the affected brand or brands. If (a) the wholesaler
25        retains the affected brand or brands for a period of
26        one year 2 years after the wholesaler rejects the offer



10100HB3442ham001- 15 -LRB101 08869 JLS 56655 a

1        to arbitrate, (b) the amount of reasonable
2        compensation has not been determined, and (c) an
3        injunction has not been issued, the brewer shall, in
4        good faith, make a payment of reasonable compensation
5        to the wholesaler. If, however, the brewer fails to
6        ship or make available brands ordered by the wholesaler
7        prior to the brewer making any payment (including a
8        good faith payment as provided in this subsection) to
9        the wholesaler, the wholesaler shall be entitled to
10        injunctive relief and attorneys' fees and shall
11        subject the brewer to punitive damages. Upon receipt of
12        this payment, the wholesaler must surrender the
13        affected brand or brands to the brewer, provided that
14        such surrender shall not affect the brewer's
15        obligation to pay all amounts ultimately determined
16        due to the wholesaler under this Act.
17        (C) If the wholesaler elects expedited binding
18    arbitration, but the brewer or craft brewer rejects, the
19    brewer or craft brewer may proceed under Section 9 for the
20    purpose of determining reasonable compensation. Upon
21    determination of reasonable compensation pursuant to
22    Section 9, the brewer shall pay the wholesaler the amount
23    so determined. Until receiving payment from the brewer of
24    the amount so determined, the wholesaler shall retain the
25    affected brand or brands. If (a) the brewer initiates a
26    proceeding under Section 9 within 90 days after the



10100HB3442ham001- 16 -LRB101 08869 JLS 56655 a

1    wholesaler rejects the offer to arbitrate, (b) the
2    wholesaler retains the affected brand or brands for a
3    period of 2 years from the date the wholesaler rejects the
4    offer to arbitrate, (c) the amount of reasonable
5    compensation has not been determined, and (d) an injunction
6    has not been issued, the brewer shall, in good faith, make
7    a payment of reasonable compensation to the wholesaler. If,
8    however, the brewer fails to ship or make available brands
9    ordered by the wholesaler prior to the brewer making any
10    payment (including a good faith payment as provided in this
11    subsection) to the wholesaler, the wholesaler shall be
12    entitled to injunctive relief and attorneys' fees and shall
13    subject the brewer to punitive damages. Upon receipt of
14    this payment, the wholesaler must surrender the affected
15    brand or brands to the brewer, provided that such surrender
16    shall not affect the brewer's obligation to pay all amounts
17    ultimately determined due to the wholesaler under this Act.
18    (2) Except as otherwise provided in subsection (1.5), in
19the event that the brewer and the beer wholesaler are unable to
20mutually agree on the reasonable compensation to be paid for
21the value of the wholesaler's business, as defined in this Act,
22either party may maintain a civil suit as provided in Section 9
23or the matter may, by mutual agreement of the parties, be
24submitted to a neutral arbitrator to be selected by the parties
25and the claim settled in accordance with the rules provided by
26the American Arbitration Association. Arbitration costs shall



10100HB3442ham001- 17 -LRB101 08869 JLS 56655 a

1be paid one-half by the wholesaler and one-half by the brewer.
2The award of the arbitrator shall be final and binding on the
4(Source: P.A. 96-482, eff. 8-14-09; 97-1119, eff. 8-27-12.)
5    (815 ILCS 720/8)  (from Ch. 43, par. 308)
6    Sec. 8. Right of free association. No brewer, craft brewer,
7or wholesaler shall restrict or inhibit, directly or
8indirectly, the right of free association among brewers, craft
9brewers, or wholesalers for any lawful purpose.
10(Source: P.A. 82-946.)
11    (815 ILCS 720/8.5 new)
12    Sec. 8.5. Craft brewer agreements.
13        (1) Upon written notice to a wholesaler, a craft brewer
14    may cancel, terminate, or not renew any agreement with a
15    wholesaler.
16        (2) The notification required under subsection (1)
17    shall be in writing and sent to the affected party by
18    certified mail not less than 30 days before the date on
19    which the agreement will be terminated, cancelled, or not
20    renewed. The notice shall contain: (i) a statement of
21    intention to cancel, to not renew, or otherwise terminate
22    an agreement; (ii) the date on which the action will take
23    effect; and (iii) a complete statement of the reasons for
24    the termination, cancellation, or nonrenewal, including



10100HB3442ham001- 18 -LRB101 08869 JLS 56655 a

1    whether the termination, cancellation, or nonrenewal is
2    based on good cause, or a violation of Section 5, or both.
3        (3) Upon receipt of a notice of termination,
4    cancellation, or nonrenewal, a wholesaler may be entitled
5    to reasonable compensation, but is not automatically
6    entitled to receive compensation.
7        (4) A wholesaler and craft brewer may in their written
8    agreement provide for predetermined compensation and the
9    circumstances under which the wholesaler would be entitled
10    to compensation.
11        (5) Any compensation negotiated and agreed to be paid
12    to a wholesaler as a result of a termination, cancellation,
13    or nonrenewal by a craft brewer, except for compensation
14    provided for in the agreement, shall be determined by the
15    following factors: (i) the length of time the wholesaler
16    has distributed the craft brewer's product; (ii) the total
17    annual volume of all products supplied by a craft brewer to
18    a wholesaler and the percentage of the wholesaler's total
19    sales the craft brewer's volume represents; and (iii) the
20    actual case equivalent sales of the craft brewer's products
21    made by the wholesaler on sales of the craft brewer's
22    product.
23        (6) A wholesaler is not entitled to any compensation
24    under the following:
25            (A) The wholesaler shall not receive compensation
26        if the craft brewer cancels, terminates, or does not



10100HB3442ham001- 19 -LRB101 08869 JLS 56655 a

1        renew an agreement for any of the reasons stated in
2        subsection (3) of Section 3.
3            (B) The wholesaler shall not receive any
4        compensation if the craft brewer cancels, terminates,
5        or does not renew an agreement for committing any
6        violation of Section 5.
7            (C) The wholesaler shall not receive any
8        compensation if the craft brewer cancels, terminates,
9        or does not renew an agreement if the wholesaler has
10        not purchased or sold the craft brewer's products for
11        more than 6 months prior to the date of the notice of
12        termination, cancellation, or nonrenewal.
13            (D) The wholesaler shall not receive compensation
14        if the sales of the craft brewer's products represent
15        less than 2% of the wholesaler's annual gross sales of
16        all of its beers. A wholesaler shall, on an annual
17        basis, provide the craft brewer with a sales report
18        that indicates the percentage of the wholesaler's
19        annual gross sales for the previous 12 months the craft
20        brewer represents.
21    (815 ILCS 720/9)  (from Ch. 43, par. 309)
22    Sec. 9. Judicial and other remedies.
23    (1) If the brewer, craft brewer, or wholesaler who is a
24party to an agreement pursuant to this Act fails to comply with
25this Act or otherwise engages in conduct prohibited under this



10100HB3442ham001- 20 -LRB101 08869 JLS 56655 a

1Act, the affected party may maintain a civil suit in court if
2the cause of action directly relates to or stems from the
3relationship of the individual parties under the agreement,
4provided that any such suit shall be filed in a State or
5federal court of competent jurisdiction located in Illinois.
6    In any legal action challenging any cancellation,
7termination, or failure to renew, the brewer, craft brewer, or
8wholesaler that initiates the civil suit has the burden of
9proving the existence of good cause if the wholesaler first
10makes a prima facie showing that good cause does not exist.
11    (2) A brewer, craft brewer, or wholesaler may bring an
12action for declaratory judgment for determination of any
13controversy arising under this Act or out of the brewer or
14craft brewer and wholesaler relationship.
15    (3) Upon proper application to the court, a brewer, craft
16brewer, or wholesaler may obtain injunctive relief against any
17violation of this Act.
18    (4) In any action under subsection (1) the court may grant
19such relief as the court determines is necessary or appropriate
20considering the purposes of this Act.
21    (5) The prevailing party in any action under subsection (1)
22shall be entitled to (i) actual damages, (ii) all court or
23arbitration costs, and (iii) attorneys' fees at the court's
25    (6) With respect to any dispute arising under this Act or
26out of the relationship between brewer or craft brewer and



10100HB3442ham001- 21 -LRB101 08869 JLS 56655 a

1wholesaler, the wholesaler and the brewer or craft brewer, each
2has the absolute right before it has agreed to arbitrate a
3particular dispute to refuse to arbitrate that particular
4dispute. A party refusing to accept arbitration shall do so in
5writing within 30 days after receipt of a written request for
6arbitration. Arbitration shall be conducted in accordance with
7the Commercial Arbitration Rules of the American Arbitration
8Association and the laws of this State, and judgment upon the
9award rendered by the arbitrator may be entered in any court
10having jurisdiction. A brewer, craft brewer, or wholesaler may
11not, as a condition of entering into or renewing an agreement,
12require the wholesaler, brewer, or craft brewer to agree to
13arbitration instead of judicial remedies.
14    (7) If there is a finding by an arbitrator or a court in a
15proceeding under this Section or under subsection (1.5) or (2)
16of Section 7 that a party has not acted in good faith, an
17appropriate penalty shall be assessed by the arbitrator or the
18court against that party and, in addition, that party shall
19also be ordered to pay all court or arbitration costs and
20reasonable legal fees incurred by the other party in the
22(Source: P.A. 90-91, eff. 7-11-97; 90-655, eff. 7-30-98;
2391-247, eff. 7-22-99.)".