Wine Spectator: The Latest Wine-Shipping Case
July 21, 2023A federal court has issued a ruling that could change how consumers in Ohio are able to buy wine. In Derek Block v. James Canepa, the U.S. Sixth Circuit Court of Appeals has reversed an earlier decision from the Ohio District Court and is remanding the case back to that lower court for further deliberation. Observers are wondering whether the reversal represents a watershed moment in the ongoing battle over wine shipping laws across the country.
Ohio is one of the few remaining states where direct-to-consumer shipping from out-of-state wineries is limited. Following a U.S. Supreme Court decision, the majority of states allow winery shipping, and only a few states outright ban winery shipments. However, there are only a few states that permit shipments from out-of-state retailers.
In July 2020, Ohioan wine consumer Kenneth Miller and Chicago-based alcohol retailer House of Glunz brought the case against Ohio. Under current law, Ohio’s Direct Ship Restriction prohibits out-of-state wine retailers from shipping directly to consumers in the Buckeye State (except for a few sellers who previously shipped under an older regulatory system). Ohio attorney general Dave Yost hasn’t hesitated to enforce this restriction.
Additionally, Ohio’s Transportation Limit rules prevent residents from receiving more than 4.5 liters—equivalent to six 750-ml bottles—of shipped wine from beyond Ohio during any 30-day period. The case made its way to the District Court for the Southern District of Ohio, where Judge Sarah D. Morrison ruled in favor of the state, maintaining that the Direct Ship Restriction is “non-protectionist” and legitimately promotes public interests. The judge cited the earlier case Lebamoff Enterprises Inc. v. Whitmer as “controlling and dispositive”—that is, unquestionable—precedent.
Morrison also ruled that the plaintiffs did not have the standing to challenge the Transportation Limit, because Miller hadn’t successfully shown he was at “’threat of prosecution’” under that law. But the Circuit Court reversed Morrison’s summary judgment on the Direct Ship Restriction; it also reversed the decision on Miller’s ability to challenge the Transportation Limit, determining that the plaintiff did show that prosecution under that law was a “realistic possibility.” Wine Spectator has the full story.
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