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Note: This is the main story in a total of four on this case. The other three are linked from this article. Appeals Board quotes are in red
The California Department of Alcoholic Beverage Control has been handed its regulatory head in a bag by the ABC Appeals Board which resoundingly rejected every tied-house allegation the ABC used to prosecute 37 wineries along with Southern Wine & Spirits over alleged violations connected with the 2013 Bottlerock concert in Napa.
The Appeals Board’s decisions are shot through with exasperation over what it repeatedly considered the ABC’s interpretations of state law, its focus on irrelevancies, and its unsubstantiated assertions created to fit their complaints against the wineries.
The Appeals Board dished out a lengthy series of wickedly detailed and sharply worded admonishments to the ABC and the Administrative Law Judges (ALJ) who sided with the ABC.
The opinion, whose language often bordered on sarcasm and disbelief, left no doubt that the Appeals Board had thoroughly repudiated the methods, manner, and logic of the ABC’s tied-house complaints as well as the ALJs’s support of those.
The Board even called one of the ABC’s primary arguments “absurd” and left no doubt about its displeasure when it compared the ABC’s logic — and that of the Administrative Law Judge (ALJ) who sided with the department — to the “slippery slope” section in An Illustrated Book of Bad Arguments.
The near-identical opinions — right down to many parts that were word-for-word the same — were issue in the three appeals issued so far by:
Note: the links above, go to the full text of decisions by the Appeals Board. Those links, as well as others in this article are available to premium subscribers of Wine Executive News.
The ABC was represented by department counsel Dean Lueders.
The ALJs in the three cases decided so far were Sonny Lo and Nicholas R. Loehr.
The wineries who had their tied-house cases reversed — Freixenet Sonoma Caves, Grigich Hills Estate and Silver Oak Cellars — were represented by San Francisco law firm Hinman & Carmichael.
No one from Hinman & Carmichael would comment on the case and did not respond to Wine Industry Insight’s request for a copy of the Appeals Board decision. The ABC never replied to requests for comment.
The full text of the following detailed sections offering guidance to wineries is available to premium subscribers of Wine Executive News.
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