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7th Circuit upholds Indiana law on wine shipping

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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.

 

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  1. The practitioners and judges who hail E-filing as the Saviour of the West need to contain their respective excitements. E-filing is federal court requires the practitioner to cram his motion practice into pigeonholes created by IT people. Compound motions or those seeking alternative relief are effectively barred, unless the practitioner wants to receive a tart note from some functionary admonishing about the "problem". E-filing is just another method by which courts and judges transfer their burden to practitioners, who are the really the only powerless components of the system. Of COURSE it is easier for the court to require all of its imput to conform to certain formats, but this imposition does NOT improve the quality of the practice of law and does NOT improve the ability of the practitioner to advocate for his client or to fashion pleadings that exactly conform to his client's best interests. And we should be very wary of the disingenuous pablum about the costs. The courts will find a way to stick it to the practitioner. Lake County is a VERY good example of this rapaciousness. Any one who does not believe this is invited to review the various special fees that system imposes upon practitioners- as practitioners- and upon each case ON TOP of the court costs normal in every case manually filed. Jurisprudence according to Aldous Huxley.

  2. Any attorneys who practice in federal court should be able to say the same as I can ... efiling is great. I have been doing it in fed court since it started way back. Pacer has its drawbacks, but the ability to hit an e-docket and pull up anything and everything onscreen is a huge plus for a litigator, eps the sole practitioner, who lacks a filing clerk and the paralegal support of large firms. Were I an Indiana attorney I would welcome this great step forward.

  3. Can we get full disclosure on lobbyist's payments to legislatures such as Mr Buck? AS long as there are idiots that are disrespectful of neighbors and intent on shooting fireworks every night, some kind of regulations are needed.

  4. I am the mother of the child in this case. My silence on the matter was due to the fact that I filed, both in Illinois and Indiana, child support cases. I even filed supporting documentation with the Indiana family law court. Not sure whether this information was provided to the court of appeals or not. Wish the case was done before moving to Indiana, because no matter what, there is NO WAY the state of Illinois would have allowed an appeal on a child support case!

  5. "No one is safe when the Legislature is in session."

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