Illinois winery chugs forward in California alcohol sales lawsuit

A federal judge in California has allowed Blue Sky Vineyards, an Illinois winery, to continue its lawsuit alleging the state's alcohol distribution rules unconstitutionally favor in-state wineries over out-of-state competitors like itself.

Judge John Mendez rejected California's bid to toss the commerce clause claim, ruling that factual questions about whether the law has a legitimate nonprotectionist justification can't be resolved this early. He did, however, dismiss the winery's privileges and immunities claim, since that clause only covers people, not corporations.

The dispute centers on California's three-tier system, which lets in-state wineries sell directly to retailers while out-of-state producers must go through a wholesaler, adding costs Blue Sky calls economically unrealistic. The case now moves toward summary judgment, where the real fight over discrimination happens.

The full dispatch is available from the source below.