A FIGHT FOR DIRECT RETAIL SHIPMENTS IN THE LONESTAR STATE

A lawsuit was filed yesterday in U.S. District Court for the Northern district of Texas that challenges the constitutionality of Texas’ laws prohibiting legal consumers from purchasing and receiving wine directly from out-of-state retailers. Filed by Kenneth Starr of Kirkland & Ellis, the lawsuit claims “a great state has done a real wrong.” James Shannon, partner of Kirkland & Ellis said, “The Commerce Clause requires that out-of-state wine retailers be treated the same as in-state wine retailers. Rather than abide by the U.S. Constitution, however, Texas apparently has decided to favor the interests of its powerful liquor lobby, by seeking to prevent out-of-state wine retailers from delivering wines directly to Texas consumers.” The Specialty Wine Retailers Association, a lobbying group that supports direct shipment, sent out a press release yesterday acknowledging their support for the lawsuit.