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Arizona's Wine Regulations, Bankruptcy Case

By FindLaw Staff on April 13, 2010 12:08 PM

Black Star Farms LLC v. Oliver, No. 08-15738, concerned an action by a Michigan winery claiming that certain provisions of Arizona's statutory scheme regulating the direct shipment of wine from wineries -- whether located in-state or out-of-state -- to Arizona consumers violated the dormant Commerce Clause.  The Ninth Circuit affirmed summary judgment for defendant, on the ground that Arizona's statutory exceptions to its three-tier distribution system, which treated similarly situated in-state and out-of-state wineries the same and imposed no new impermissible burdens on out-of-state wineries, did not have the practical effect of favoring in-state economic interests over out-of-state interests.

In re: Sabban, No. 08-60017, involved a Chapter 7 bankruptcy adversary proceeding.  The court of appeals affirmed the bankruptcy court's order holding that a monetary award under California's unlicensed contractor statute, Cal. Bus. & Prof. Code section 7031(b), was dischargeable, on the ground that the award was exempted from discharge pursuant to 11 U.S.C. section 523(a)(2)(A) because it was not premised on either fraud or actual harm.

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