ILNews

7th Circuit upholds Indiana law on wine shipping

Back to TopCommentsE-mailPrintBookmark and Share

The 7th Circuit Court of Appeals has upheld an Indiana statute that prevents alcohol retailers from shipping their products to consumers by using a motor carrier such as UPS, and the state has the authority to regulate those shipments through the 21st Amendment.

In a 36-page opinion issued Tuesday in Lebamoff Enterprises v. Alex Hurley, in his official capacity as chairman of the Indiana Alcohol and Tobacco Commission, No. 11-1362, a three-judge panel affirmed a ruling by U.S. Judge Jane Magnus-Stinson in Indianapolis. The District judge had granted judgment for the state defendants and against a northeastern Indiana wine retailer challenging the state statute.

Filed by Cap N’Cork, a company that owns retail liquor stores in the Fort Wayne area, and joined by two Indianapolis wine consumers, the suit challenged the constitutionality of Indiana Code 7.1-3-15-3(d) that forbids delivery of wine, liquor and beer by anyone other than the seller of the wine or an employee . The plaintiffs argued the state law is preempted by federal statute regulating motor carriers and also contended that it restricts intrastate commerce and goes against their 21st Amendment right to regulate alcohol sales.

The majority judges found that Cap N’ Cork’s federal preemption argument fails because the statute isn’t attempting to regulate motor carriers. The judges also applied a 1970 ruling from the Supreme Court of the United States, Pike v. Bruce Church, Inc., 397 U.S. 137, 142 (1970), to balance the circumstances at issue in the case between the statute and how caselaw interacts with the 21st Amendment.

“The case comes down to a complaint that state law is preventing Cap N’ Cork from enlarging its sales area to encompass parts of Indiana remote from Fort Wayne,” Judge Richard Posner wrote in the opinion, joined by Judge Diane Sykes. “If true that is an effect on intrastate commerce, not interstate commerce. No effect on interstate commerce has been shown … The absence of even an incidental effect on interstate commerce excuses us from having to wrestle with the continued applicability of the Pike standard to state laws that while they discriminate incidentally against interstate commerce are at the same time within the Twenty-First Amendment’s gravitational field.”

U.S. Judge David Hamilton issued a separate lengthy opinion that concurred in judgment, but reached the conclusion based on a different approach than his colleagues. He found that the Pike balancing test is intrusive and shouldn’t be applied, and that the 21st Amendment trumps these balancing tests when looking at state powers to regulate alcohol transportation and importation.

 

ADVERTISEMENT

Post a comment to this story

COMMENTS POLICY
We reserve the right to remove any post that we feel is obscene, profane, vulgar, racist, sexually explicit, abusive, or hateful.
 
You are legally responsible for what you post and your anonymity is not guaranteed.
 
Posts that insult, defame, threaten, harass or abuse other readers or people mentioned in Indiana Lawyer editorial content are also subject to removal. Please respect the privacy of individuals and refrain from posting personal information.
 
No solicitations, spamming or advertisements are allowed. Readers may post links to other informational websites that are relevant to the topic at hand, but please do not link to objectionable material.
 
We may remove messages that are unrelated to the topic, encourage illegal activity, use all capital letters or are unreadable.
 

Messages that are flagged by readers as objectionable will be reviewed and may or may not be removed. Please do not flag a post simply because you disagree with it.

Sponsored by
ADVERTISEMENT
Subscribe to Indiana Lawyer
  1. Why in the world would someone need a person to correct a transcript when a realtime court reporter could provide them with a transcript (rough draft) immediately?

  2. This article proved very enlightening. Right ahead of sitting the LSAT for the first time, I felt a sense of relief that a score of 141 was admitted to an Indiana Law School and did well under unique circumstances. While my GPA is currently 3.91 I fear standardized testing and hope that I too will get a good enough grade for acceptance here at home. Thanks so much for this informative post.

  3. No, Ron Drake is not running against incumbent Larry Bucshon. That’s totally wrong; and destructively misleading to say anything like that. All political candidates, including me in the 8th district, are facing voters, not incumbents. You should not firewall away any of voters’ options. We need them all now more than ever. Right? Y’all have for decades given the Ds and Rs free 24/7/365 coverage of taxpayer-supported promotion at the expense of all alternatives. That’s plenty of head-start, money-in-the-pocket advantage for parties and people that don’t need any more free immunities, powers, privileges and money denied all others. Now it’s time to play fair and let voters know that there are, in fact, options. Much, much better, and not-corrupt options. Liberty or Bust! Andy Horning Libertarian for IN08 USA House of Representatives Freedom, Indiana

  4. A great idea! There is absolutely no need to incarcerate HRC's so-called "super predators" now that they can be adequately supervised on the streets by the BLM czars.

  5. One of the only qualms I have with this article is in the first paragraph, that heroin use is especially dangerous because it is highly addictive. All opioids are highly addictive. It is why, after becoming addicted to pain medications prescribed by their doctors for various reasons, people resort to heroin. There is a much deeper issue at play, and no drug use should be taken lightly in this category.

ADVERTISEMENT