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Alexis Bailly Vineyard, Inc. v. John Harrington
931 F.3d 774
| 8th Cir. | 2019
Read the full case

Background

  • Minnesota’s Farm Wineries Act creates a special farm-winery license permitting direct sales to retailers and consumers but requires a farm winery to produce wine “with a majority of the ingredients grown or produced in Minnesota.”
  • Farm winery licensees pay $50/year, must produce under 75,000 gallons, and be located on agricultural land; an affidavit exception allows temporary use of out-of-state ingredients if Minnesota ingredients are unavailable.
  • Alexis Bailly Vineyard, Inc. and The Next Chapter Winery, LLC (collectively, Farm Wineries) hold farm-winery licenses and want to expand production using out-of-state ingredients, but contend the in-state majority requirement blocks that expansion.
  • The Farm Wineries brought a pre-enforcement dormant Commerce Clause challenge seeking declaratory relief that the in-state requirement is unconstitutional.
  • The district court granted summary judgment to the Commissioner for lack of standing, reasoning the wineries’ injuries resulted from their voluntary choice to operate under the farm-winery license rather than as manufacturers.
  • The Eighth Circuit reversed, holding the Farm Wineries have standing and remanded for the district court to address the constitutional merits.

Issues

Issue Plaintiff's Argument Defendant's Argument Held
Standing — injury in fact Farm Wineries intend to expand using out-of-state ingredients; the statute currently bars that, creating imminent, concrete injury No imminent injury; affidavits and lack of past enforcement show threat of prosecution not credible Injury in fact exists: they have a present intention proscribed by statute and face a credible threat of enforcement
Standing — traceability Injuries flow from the statute’s in-state majority requirement that conditions the farm-winery license Harms are self-inflicted by choosing the farm-winery license instead of a manufacturer license; thus not traceable to statute Harms are fairly traceable; Commissioner has authority to enforce the provision and statute conditions the license
Standing — redressability A declaratory judgment removing the in-state requirement would allow expansion and redress harms Removal of the requirement would not redress self-chosen licensing framework Redressability satisfied: ruling would remove the asserted constraint and aid plaintiffs
Merits (dormant Commerce Clause) The in-state preference discriminates against out-of-state suppliers in violation of the dormant Commerce Clause State interest in regulating alcohol under Twenty-first Amendment and promoting local industry justifies the rule Court declined to decide on the merits and remanded for district court consideration

Key Cases Cited

  • Lujan v. Defenders of Wildlife, 504 U.S. 555 (standing framework for causation and redressability)
  • Susan B. Anthony List v. Driehaus, 573 U.S. 149 (pre-enforcement standing rules)
  • MedImmune, Inc. v. Genentech, Inc., 549 U.S. 118 (pre-enforcement challenge principles)
  • Clapper v. Amnesty International USA, 568 U.S. 398 (limits on speculative injury allegations)
  • Granholm v. Heald, 544 U.S. 460 (state licensing and discriminatory restrictions on interstate wine sales)
  • Tenn. Wine & Spirits Retailers Ass’n v. Thomas, 139 S. Ct. 2449 (Twenty-first Amendment does not permit protectionist discrimination)
  • S.D. Farm Bureau, Inc. v. Hazeltine, 340 F.3d 583 (dormant Commerce Clause economic-injury standing precedent)
  • North Dakota v. Heydinger, 825 F.3d 912 (pre-enforcement challenge where statute’s text supports credible threat of enforcement)
Read the full case

Case Details

Case Name: Alexis Bailly Vineyard, Inc. v. John Harrington
Court Name: Court of Appeals for the Eighth Circuit
Date Published: Jul 29, 2019
Citation: 931 F.3d 774
Docket Number: 18-1846
Court Abbreviation: 8th Cir.