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. I have had an ongoing custody case for 6 yrs. I should have been the sole legal custodial parent but was a victim of a vindictive ex and the system biasedly supported him. He is an alcoholic and doesn't even have a license for two yrs now after his 2nd DUI. Fast frwd 6 yrs later my kids are suffering poor nutritional health, psychological issues, failing in school, have NO MD and the GAL could care less, DCS doesn't care. The child isn't getting his ADHD med he needs and will not succeed in life living this way. NO one will HELP our family.I tried for over 6 yrs. The judge called me an idiot for not knowing how to enter evidence and the last hearing was 8 mths ago. That in itself is unjust! The kids want to be with their Mother! They are being alienated from her and fed lies by their Father! I was hit in a car accident 3 yrs ago and am declared handicapped myself. Poor poor way to treat the indigent in Indiana!

  2. The Indiana DOE released the 2015-2016 school grades in Dec 2016 and my local elementary school is a "C" grade school. Look at the MCCSC boundary maps and how all of the most affluent neighborhoods have the best performance. It is no surprise that obtaining residency in the "A" school boundaries cost 1.5 to 3 times as much. As a parent I should have more options than my "C" school without needing to pay the premium to live in the affluent parts of town. If the charter were authorized by a non-religious school the plaintiffs would still be against it because it would still be taking per-pupil money from them. They are hiding behind the guise of religion as a basis for their argument when this is clearly all about money and nothing else.

  3. This is a horrible headline. The article is about challenging the ability of Grace College to serve as an authorizer. 7 Oaks is not a religiously affiliated school

  4. Congratulations to Judge Carmichael for making it to the final three! She is an outstanding Judge and the people of Indiana will benefit tremendously if/when she is chosen.

  5. The headline change to from "religious" to "religious-affiliated" is still inaccurate and terribly misleading.

ADVERTISEMENT