When the New York State Liquor Authority denied Costco Wholesale Corporation’s application for a liquor license (for a 2,900-square-foot liquor store which Costco planned to add to its Lawrence "big box" facility), the company filed suit.
And after the Nassau County Supreme Court sided with Costco (and directed the SLA to issue a permit), the Appellate Division, Second Department, agreed that the Authority had acted “arbitrarily and capriciously” when it denied the license, particularly since the underlying record lacked “factual support” for the rejection.
Guess who ain’t toasting Costco?
To view a copy of the Appellate Division’s decision, please use this link: Matter of Costco Wholesale Corp. v New York State Liq. Auth.