Alexis Bailly Vineyard, Inc. v. John Harrington
931 F.3d 774
| 8th Cir. | 2019Background
- 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)
