By JEFF QUACKENBUSH | Press Democrat | Sep 5, 2024 |
Three Napa Valley wineries claim Napa County is violating their constitutional rights involving free speech, due process and economic protectionism.
Even while Lindsay Hoopes’ two-year legal battle with Napa County over winery permitting continues in local court, the former San Francisco prosecutor turned vintner has joined with two other small local wineries in opening another front in federal court.
The federal and county cases touch on longstanding, sometimes incendiary issues in Napa Valley politics and the wine industry, including rural character, agricultural land protection, traffic concerns and vintners’ growing desire to attract consumers through estate visits and experiences.
Hoopes Vineyard LLC, Summit Lake Vineyards & Winery LLC and Cook’s Flat Associates (Smith-Madrone Winery) on Thursday sued Napa County in U.S. District Court in San Francisco, claiming local ordinances and policies “have violated numerous Constitutional rights of County wineries.”
“If a winery within the County dares challenge the discretion of Napa County and the restrictions placed on these wineries, it is met with retribution and millions of dollars in costs just to ‘maintain’ the limited operating permissions Napa County was ‘gracious’ enough to allow in the first place. In many cases, the winery is forced to bargain ‘down’ their existing entitlements (at substantial expense) to avoid closure and/or enforcement action,” the 60-page complaint said.
Here are key allegations in the filing:
• “Commercial speech”: Certain policies and ordinances are deemed to prohibit or restrict activities that bring potential customers to a winery, or “marketing of wine.” They claim that limits their First Amendment protected “ability to engage in commercial speech which is no more than speech proposing a commercial transaction.”
• Due process: Purported lack of accountability for county actions because of unclear definitions for “tastings” and “marketing.”
• “Voluntary compliance” is said to be mandatory and allegedly limits freedom of commercial speech. A program several years ago that allows wineries with older use permits to check with county staff as to whether their current operations are in compliance is claimed to open wineries to potentially expensive compliance efforts to maintain in business.
• “Economic protectionism”: The county’s requirement that wineries use 75% county-grown grapes is said to violate what’s called the “dormant Commerce Clause.” Joseph Infante, an attorney in the federal case, said the suit is not an attack on the federal American Viticultural Area system or California law that requires a similar percentage of grapes to be able to use the appellation’s name on the bottle front label.
Lindsay Hoopes, Heather Brakesman-Griffin of Summit Lake Vineyard and Stuart Smith of Smith-Madrone Winery explained in a statement why they were taking the matter to federal court:
“Only by going to the federal courts can we protect our constitutional rights to ensure fairness in being regulated by Napa County. Whether it’s unfair and capricious manipulation of the winery database, ever-changing interpretations of the road and street standards or other issues, there is a desperate need to find fairness, professionalism and integrity in how we are regulated.”
A Napa County spokesperson said Thursday afternoon that the lawsuit had not yet been received.
Summit Lake and Smith-Madrone a year ago had joined Hoopes in bringing up similar issues with local policy a counter action against Napa County, but those wineries weren’t allowed to continue on in that case, Infante said. That county court action came after the local government had sued Hoopes in October 2022 over alleged violations of zoning and nuisance laws with its Yountville winery.
The Napa County Superior Court trial wrapped in February, and a decision from the judge is pending after Hoopes and the county filed closing statements. A hearing on a motion to dismiss the case is set for 8:30 a.m. Friday
Jeff Quackenbush covers wine, construction and real estate. Reach him at [email protected] or 707-521-4256.
