ILNews

Judge: Wine shipping law unconstitutional

Michael W. Hoskins
January 1, 2007
Keywords
Back to TopCommentsE-mailPrintBookmark and Share
Indiana's law prohibiting out-of-state wineries from shipping to Hoosier customers without face-to-face contact is unconstitutional, a federal judge in Indianapolis has ruled.

U.S. District Judge John D. Tinder issued a 71-page decision http://www.insd.uscourts.gov/News/Baude.pdf, and a separate four-page judgment http://www.insd.uscourts.gov/News/BaudeJudgment.pdf and injunction late Wednesday in Patrick L. Baude et al. v. David L. Heath and Wine and Sprits Wholesalers of Indiana, No. 1:05-cv-0735-JDT-TAB.

At issue in this case was whether state statute involving direct wine shipment violated the out-of-state wineries rights by barring them from newly created direct wine seller permits. The law went into effect in March 2006, and this federal suit came the following month.

Plaintiffs include a major Michigan winery, Chateau Grand Traverse, and five consumers. They challenged the law, part of which mandated they have at least one face-to-face transaction to allow the winery to verify the customer's age. The winery contended the rules discriminated against out-of-state wineries by preventing them from competing in the direct-sale market, and the consumers argued they were barred from obtaining many wines because of the impracticality of traveling outside the state or to complete the in-person requirement.

Defendant Heath, commissioner of the Indiana Alcohol and Tobacco Commission, contended the laws do not discriminate and are needed to prevent the sale of alcohol to minors - the state's interest in protecting its youth outweighs any incidental burdens on interstate commerce.

Judge Tinder disagreed, noting that the requirement creates a trade barrier for wineries by requiring them to set up shop in Indiana or limit their potential market to buyers willing to travel to them.

This is not the first time wine connoisseurs have challenged Indiana's authority to regulate direct shipments of wine into the state. The 7th Circuit Court of Appeals in Chicago dealt a blow to wine lovers in 2000 with a ruling that the state could prohibit direct shipments, but since that case of Bridenbaugh v. Freeman-Wilson, 227 F.3d 848, 854 (7th Cir. 2000), the U.S. Supreme Court has weighed in to change the legal landscape.

In 2005, the court ruled in the Michigan case of Granholm v. Heald, 544 W.S. 460, 493 (2005) that states could not discriminate against out-of-state-wineries by prohibiting them from shipping directly to consumers if the state laws allowed in-state wineries to do so. The court ruled the repealed 21st Amendment on Prohibition did not override the requirements of the Commerce Clause in regulating interstate commerce of goods.

Relying on that high court ruling, Judge Tinder based his determination and granted the injunction enjoining the Alcohol and Tobacco Commission from enforcing the rule.

"This court's decision is likely to be of immediate interest only to those out-of-state wineries with an existing base of Indiana customers or wine connoisseurs who may have the means to persuade out-of-state firms to undertake the effort," he wrote. "Indiana wineries will not need to change any of their current business practices. Indeed, there is little likelihood that much will change before the General Assembly meets again."
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

facebook - twitter on Facebook & Twitter

Indiana State Bar Association

Indianapolis Bar Association

Evansville Bar Association

Allen County Bar Association

Indiana Lawyer on Facebook

facebook
ADVERTISEMENT
Subscribe to Indiana Lawyer
  1. I can understand a 10 yr suspension for drinking and driving and not following the rules,but don't you think the people who compleate their sentences and are trying to be good people of their community,and are on the right path should be able to obtain a drivers license to do as they please.We as a state should encourage good behavior instead of saying well you did all your time but we can't give you a license come on.When is a persons time served than cause from where I'm standing,its still a punishment,when u can't have the freedom to go where ever you want to in car,truck ,motorcycle,maybe their should be better programs for people instead of just throwing them away like daily trash,then expecting them to change because they we in jail or prison for x amount of yrs.Everyone should look around because we all pay each others bills,and keep each other in business..better knowledge equals better community equals better people...just my 2 cents

  2. I was wondering about the 6 million put aside for common attorney fees?does that mean that if you are a plaintiff your attorney fees will be partially covered?

  3. I expressed my thought in the title, long as it was. I am shocked that there is ever immunity from accountability for ANY Government agency. That appears to violate every principle in the US Constitution, which exists to limit Government power and to ensure Government accountability. I don't know how many cases of legitimate child abuse exist, but in the few cases in which I knew the people involved, in every example an anonymous caller used DCS as their personal weapon to strike at innocent people over trivial disagreements that had no connection with any facts. Given that the system is vulnerable to abuse, and given the extreme harm any action by DCS causes to families, I would assume any degree of failure to comply with the smallest infraction of personal rights would result in mandatory review. Even one day of parent-child separation in the absence of reasonable cause for a felony arrest should result in severe penalties to those involved in the action. It appears to me, that like all bureaucracies, DCS is prone to interpret every case as legitimate. This is not an accusation against DCS. It is a statement about the nature of bureaucracies, and the need for ADDED scrutiny of all bureaucratic actions. Frankly, I question the constitutionality of bureaucracies in general, because their power is delegated, and therefore unaccountable. No Government action can be unaccountable if we want to avoid its eventual degeneration into irrelevance and lawlessness, and the law of the jungle. Our Constitution is the source of all Government power, and it is the contract that legitimizes all Government power. To the extent that its various protections against intrusion are set aside, so is the power afforded by that contract. Eventually overstepping the limits of power eliminates that power, as a law of nature. Even total tyranny eventually crumbles to nothing.

  4. Being dedicated to a genre keeps it alive until the masses catch up to the "trend." Kent and Bill are keepin' it LIVE!! Thank you gentlemen..you know your JAZZ.

  5. Hemp has very little THC which is needed to kill cancer cells! Growing cannabis plants for THC inside a hemp field will not work...where is the fear? From not really knowing about Cannabis and Hemp or just not listening to the people teaching you through testimonies and packets of info over the last few years! Wake up Hoosier law makers!

ADVERTISEMENT