Wine Without Borders

Michigan Judge: “Retailers Covered by Sup. Court Decision”

October 22, 2007 – 10:33 am

A District Judge in Michigan last week Michigan Ruling in a case there that exactly mirrors SWRA’s position on the issue of Retailer-To-Consumer shipping and the Granholm V. Heald 2005 Supreme Court decision.

Since that groundbreaking Supreme Court ruling, distributors across the country, as well as some State officials, have been arguing that because the case specifically concerned wineries, the principles of non-discrimination explained in the ruling did not apply to wine merchants, just wineries.

This is like saying that because Brown v. Board of Education was a case argued on behalf of an African American girl, it is still constitutional to pass laws that discriminate against Hispanics. That’s ludicrous. So is the view that wine retailers can be discriminated against when it comes to wine shipment laws.

In a ruling on a motion to dismiss a lawsuit challenging Michigan’s discriminatory treatment of out-of-state retailers filed by the State of Michigan, Judge Judge Denise Page Hood exactly mirrored SWRA’s position on this issue when she wrote in her ruling:

“The Court will not construe Granholm to explicitly exclude out-of-state retailers from the Supreme Court’s holding solely because the Supreme Court makes no mention of them in its opinion…. In Granholm, the Supreme Court focused more on discrimination against out-of-state economic interest and access to out-of-state markets, rather than, specifically, on out-of-state wine producers.”

The case in question in Michigan is Siesta Market v. Granholm. Yes, once again Michigan Governor Jennifer Granholm is a named defendant in a wine shipping case.

The judge’s ruling means the case may go forward. It means that the state will have to show a reason why they would allow in-state wine retailers to ship to Michigan residents but prohibit out-of-state retailers from shipping to Michigan retailers.

There are now at least three cases working their way through three different circuits in the U.S. The pro shipping side of the battle is gaining steam and momentum.