Tennessee’s Ban on Direct Shipment
of Wine Affirmed; Provisions of Tennessee Grape and Wine Law Questioned
An opinion released today by a federal Court of Appeals has
affirmed Tennessee’s ban on direct shipments of wine but also questions the Tennessee Grape and Wine Law. The Sixth Circuit
in Jelovsek v. Bredesen upholds as constitutional Tennessee’s ban on direct shipments of wine from both in-state and out-of-state
wineries. However, the court is critical of the advantages given to Tennessee wineries by the Tennessee Grape and Wine Law and
finds the law unconstitutionally discriminatory on its face.
The Grape and Wine Law regulates in-state wineries and provides
benefits to in-state wineries that use Tennessee-grown grapes. The court questions the Grape and Wine Law’s purposes and
notes the law discriminates in favor of Tennessee wineries. The court questions the 2-year residency requirements for owners
of Tennessee wineries. In addition, the service of free samples and the ability to hold festivals by Tennessee wineries are also
challenged as impermissible by the court. Perhaps the most important aspect of the case for consumers is that it recognizes the
unfairness of laws prohibiting individuals from transporting wine across state lines.
The Jelovsek decision has clearly laid to rest any
questions about the validity of the ban on direct shipments of wine in Tennessee. The court remanded the case to the district court
in Greeneville, Tennessee to consider the Grape and Wine Law further and challenges the state to justify the discriminatory purposes and effects of
the law. In doing so, the court places in doubt the validity of many of the law’s provisions, if not the entire law
itself.
