7th Circuit Court Gives Wine Shipping a Boost
August 11, 2008 – 3:27 pmA very interesting thing happened on the way to Baude v. Heath
Last week Judge Easterbrook of the 7th Circuit Court of Appeals issued their ruling in a case that challenged Indiana’s requirements 1) wine be purchased in a face-to-face transaction before being shipped and 2) anyone licensed as a wholesaler in another state may not ship to a consumer in Indiana.
Judge Easterbrook upheld the face-to-face transaction statute but struck down the wholesaler-related requirement. But something very interesting came out of the decision that states covered by 7th Circuit decisions (including Illinois) should take note of. And that was this part of Judge Easterbrook’s ruling:
“once a state allows any direct shipment, it has agreed that the wholesaler may be bypassed.”
We think this is a significant statement on the part of the Judge.
We think it makes perfect sense.
We think it meshes with the Constitutional principles enunciated in Granholm v. Heald
And we think it demonstrates the Constitutional invalidity of Illinois’ law that prohibits out of state retailers from shipping to Illinoisans, while allowing in-state retailers, in-state wineries and out-of-state wineries to ship to Illinoisans.
4 Responses to “7th Circuit Court Gives Wine Shipping a Boost”
Agreed, Mr. Wark. Now if only those paid-off legislators in IL had any scruples.
By Jack at F&B on Aug 11, 2008
Tom, I should state I haven’t had the opportunity to read the court ruling yet (been out of town) but the way the comment reads to me is as non-binding dicta. While certainly ammunition and a view I support, I wouldn’t view this language as dispositive of any future decision. Still, it is good to see this form of logic applied to the entire realm of direct wine shipments.
By Matthew Mann on Aug 12, 2008
Well said!
By DC on Sep 22, 2008