Swedenburg Winery Takes a Case of Wine to Supreme Court
Juanita Swedenburg believes she has the legal right to ship wines from her Swedenburg Estate Vineyards in Middleburg to customers in New York State, or in any other state who place orders on her website, and she is not alone.
On May 24, the United States Supreme Court Justices decided to consolidate the Swedenburg case against New York State and another similar case from Michigan into one complaint about whether or not States can prohibit out-of-state wineries from shipping directly to customers across state lines. Arguments will be heard this fall.
More than 20 similar cases are now moving through courts across the country challenging laws that States defend as part of their authority to regulate the liquor industry.
These laws also allow States to control other complex issues which originated with the doctrine that repealed Prohibition, the 21st Amendment. States enjoy broad authority to regulate the sale and use of alcoholic beverages within state lines, however the Commerce Clause has long been interpreted by the Supreme Court, as sharply limiting the ability of individual states to create economic barriers at their borders.
Many liquor wholesalers and distributors are hoping for a decision in favor of the status quo, and local wineries have traditionally believed they benefit from the trade barriers.
Not only is the foundation of American commerce built upon independent small businesses being able to thrive in an open market, in today's national, let alone global economies, it behooves the 51 state court systems to see a bigger picture in which their wineries, and tax bases, will benefit more by capitalizing on new technologies to build bigger markets.
How could three New York wine customers find the products of Swedenburg Estate Vineyards? Through the website. If Juanita Swedenburg were selling Virginia jams or peanuts to New York consumers this would not be an issue. Eliot Spitzer, New York's attorney general, filed a Supreme Court brief, agreeing with Ms. Swedenburg that the court should hear the challenge to the New York law in order to clarify the national situation.