Indiana Wine Retailer Direct-to-Consumer Shipping Court Decision

On November 28, 2018, the 7th Circuit Court of Appeals issued a ruling in Lebamoff v. Rauner, reversing a lower court grant to dismiss the case. It involves an action by an Indiana wine retailer to challenge a law in Illinois that permitted in-state retailers to ship wine to any Illinois resident, while prohibiting out-of-state retailers from doing the same. In its ruling, the 7th Circuit disagreed with the determination by the Northern District of Illinois that the 2005 Supreme Court case, Granholm v. Heald, limited its anti-discriminatory principles only to suppliers of alcohol (e.g. wineries) but not to alcohol retailers. The decision also put the Court at odds with past determinations by other US circuit courts that Granholm was limited only to suppliers, setting up a divide among the nation’s top courts. This comes as the Supreme Court prepares to hear arguments in Tennessee Wine & Spirits Retailers Ass’n v. Byrd; those arguments are scheduled for January 16, 2019. 

Author

Sovos

Sovos is a global leader in tax compliance and business-to-government reporting software, safeguarding businesses from the burden and risk of compliance around the world. As governments go digital, businesses face increased risk and complexity. The Sovos Intelligent Compliance Cloud combines world-class regulatory analysis with a global cloud software platform to create an adaptable, connected and global compliance solution that keeps businesses ahead of the ever-changing regulatory environment. Sovos supports 4,500 companies, including half of the Fortune 500, and integrates with a wide variety of business applications. Based in Boston, Sovos has offices throughout North America, Latin America and Europe. For more information visit and follow us on LinkedIn and Twitter.
Share This Post