Wineries Lawsuit Update

PTP Scores Another Important Win, But There Is Still A Long Road Ahead.

Dear OMP Neighbors,

On August 8, Federal District Court Judge Maloney put the winery trial on hold. This is an important win for PTP, as the wineries position was that trial should proceed as planned starting August 16. PTP argued successfully that, having won the right to intervene in the case only on July 27, PTP must be heard in the case.

The wineries take the position that the only thing left to decide in their lawsuit is the extent of their lost profits resulting from having to endure “illegal” zoning for so long. They have trimmed down their demand from $203 million to about $135 million. They envision a trial in Kalamazoo at which each winery owner takes the stand and testifies about their alleged lost profits.

PTP disagrees. There are many issues remaining. It’s too soon to even consider the wineries’ speculative lost profits.

As mentioned above, Judge Maloney agreed the trial must wait. PTP has raised jurisdictional questions – should this federal court be deciding whether state liquor control laws preempt local zoning? The appellate court, in granting PTP the right to intervene, said PTP is free to pursue this question. Judge Maloney agreed that a trial on lost profits doesn’t make sense before basic questions of jurisdiction are answered.

And it’s not just jurisdiction. There are other fundamental questions still unresolved, such as whether building sizes and use limits are protected First Amendment speech or just plain old zoning. The wineries packed a lot into their lawsuit; PTP will unpack it in due course.

Meanwhile, another battle is brewing. What exactly can the wineries do under the order that said some zoning provisions are invalid so the township cannot enforce them? The wineries’ position seems to be that they can do just about anything they want now, and any attempt by the township to protect the neighbors by enforcing zoning may lead to personal liability for township staff. As if this lawsuit is not straining the township enough, threatening personal risk to township staff is shameful.

The wineries are also taking the untenable position that just about any zoning limit on liquor license holders is “preempted” by state law and may lead to another lawsuit by “the Wineries, a winery in the planning or a farmer,” per a recent memo from their lawyer. PTP disagrees that wineries now have carte blanche to host big events and to do things that infringe on their neighbors’ rights, and we will prove as much in court. PTP also disagrees that state law preempts zoning. State law and state officials consistently say the opposite.

Speaking of new wineries in planning stages, the township had a surprise appearance at their board meeting Tuesday when Attorney Joe Quandt took the podium on behalf of Family Orchards LLC. This company apparently owns property on Smokey Hollow Road and wants to build a new winery there. Mr. Quandt is familiar with this lawsuit and the wineries’ and township’s legal positions since he spent more than 5 sessions and about 25 hours as the mediator. In those mediations, he heard confidential exchanges between the wineries and township trustees in this lawsuit. We question whether this is appropriate.

At least life on this old peninsula is never boring, right?

PTP needs your support and financial help. This is a battle for the very soul of Old Mission Peninsula.

Your tax-deductible donation may be made to: Preserve Old Mission Peninsula, POB 1529, Traverse City, Michigan 49685 --- You may also use the "Donate" Button below (please note that PTP has to pay a fee for on-line donations).

Thank you,
Your neighbors from Protect the Peninsula

P.S. We are happy to answer any of your questions about the lawsuit, PTP’s role in the fight, and to provide copies of court decisions. You can email us here.