Massachusetts Loses Volume Cap Litigation at 1st Circuit.

The First Circuit dealt a blow to state alcohol regulation today ruling against Massachusett’s 30,000 gallon volume cap for wineries.   In its opinion, the 1st Circuit determined that the MA law, helped by statements in the legislative record, was discriminatory in both purpose and effects and violated the Dormant Commerce Clause.  This is a different conclusion that federal district courts in Kentucky (Cherry Hill) and Arizona (Blackstar) (See below).  The 9th Circuit is currently examining Arizona’s volume cap.     Since distinctions based on size are throughout nearly every state alcohol code at some level,  this case could have huge implications.