Calif. Said to Favor Calif. Wineries Over Out-of-State Wineries in Sales to Retailers

The lawsuit alleges California laws favor California wineries over out-of-state competitors selling to California retailers. This, the complaint says, violates the dormant Commerce Clause and the Privileges Clause of the U.S. Constitution.

The plaintiff winery wants to be a "licensed winegrower" and get the benefits that come with that license. A California retailer plaintiff wants to get wines from all 50 states for resale.

Citing Granholm v. Heald, the Supreme Court decision that said state laws violate the Commerce Clause "if they if they mandate differential treatment of in-state and out-of-state economic interests that benefits the former and burdens the latter," the complaint alleges that is exactly what California does allowing in-state wineries, but not out-of-state wineries, to sell wine directly to California retailers."