Victory on the Peninsula: What the Wineries of Old Mission Decision Means for Michigan Wineries
Mark Vanneste
Howard & Howard Attorneys PLLC
The recent ruling in Wineries of the Old Mission Peninsula Association v. Peninsula Township, Case No. 1:20-cv-1008 (W.D. Mich. July 7, 2025), represents a watershed moment for Michigan wineries—not just those on Old Mission Peninsula, but across the state. After an eleven-day bench trial and years of contentious litigation, the court awarded significant damages to the plaintiff wineries and declared several township zoning ordinances unconstitutional or preempted by state law.
For members of the Michigan Wine Collaborative, this ruling is more than just a local land use dispute—it’s a case study in how aggressive local regulation can collide with state law and constitutional rights, and what wineries can do to push back.
Background: The Struggle on Old Mission
The plaintiffs were a group of eleven wineries and their association, WOMP (Wineries of Old Mission Peninsula), operating in Peninsula Township. For decades, they faced what the court described as “arbitrary enforcement” of local zoning rules that regulated nearly every aspect of winery operations—from where they could source grapes, to what events they could host, to what merchandise they could sell.
Despite having all appropriate state licenses—including Wine Maker and Small Wine Maker licenses, and various permits from the Michigan Liquor Control Commission (MLCC) and MDARD—the Township enforced a web of restrictive land use provisions in the name of preserving agricultural character. Many of these rules were more than burdensome—they were unconstitutional according to the court and the plaintiff wineries were awarded approximately $50 million in damages.
Key Legal Win
The ruling contains several holdings that should capture the attention of winery owners statewide:
- Dormant Commerce Clause Violations
The court struck down multiple zoning provisions that required wineries to source a certain percentage of grapes from Peninsula Township growers. These restrictions, the court held, discriminated against interstate commerce in violation of the U.S. Constitution. Wineries have the right to source grapes, juice, or wine from anywhere, consistent with their MLCC license.
Takeaway: Local governments cannot override state-issued winery licenses by mandating sourcing restrictions that favor local suppliers.
- Compelled and Restricted Speech
The court found that Township zoning provisions requiring wineries to “promote Peninsula agriculture” at events were unconstitutional compelled speech. Similarly, rules that required Township approval before hosting certain meetings or events—without objective criteria—were struck down as unconstitutional prior restraints on speech.
Takeaway: Wineries have First Amendment protections, and local zoning cannot dictate how they speak, promote, or conduct events that fall within the scope of their state licenses.
- Preemption by State Liquor Law
Several zoning ordinances were found to be preempted by the Michigan Liquor Control Code (MLCC). For example, rules prohibiting amplified music and off-site catering directly conflicted with rights granted under MLCC permits.
Takeaway: If you’re licensed under the MLCC, a township cannot impose conflicting restrictions on music, catering, or tasting room operations.
- Unconstitutional Vagueness
The Township’s use of undefined terms like “Guest Activity Uses” created confusion and left wineries unsure of what was allowed. The court ruled this vagueness unconstitutional under due process principles.
Takeaway: Regulatory clarity is required. Vague terms that give zoning boards unfettered discretion are not enforceable.
Practical Lessons for Wineries Across Michigan
This decision should be a wake-up call for wineries operating in any township that attempts to restrict winery activities under the guise of “ag preservation,” “rural character,” or anything similar. Here are key steps to consider:
- Know Your Rights Under State Law: Your MLCC and MDARD licenses give you substantial rights to produce, serve, and sell. Local governments generally cannot override those rights with conflicting ordinances.
- Review Local Zoning Ordinances: Identify any township rules that may impose sourcing requirements, limit event hosting, or restrict merchandise sales in ways that go beyond your state-granted authority.
- Document Enforcement Patterns: One of the strengths in the Old Mission case was the compelling testimony of winery owners who shared stories of selective and burdensome enforcement. If you’re experiencing similar treatment, keep records.
- Work Through Industry Groups: The success of WOMP as a unified plaintiff group shows the power of collaboration. The Michigan Wine Collaborative could potentially play a vital role in pushing back against harmful regulation and advocating for legislative fixes.
- Consider Legal Action When Necessary: When faced with intransigent local government or unreasonable zoning conditions, litigation may be the only remedy. This case is proof that the courts are willing to protect the constitutional and statutory rights of Michigan wineries.
Final Thought
The Wineries of Old Mission Peninsula case is a landmark decision that affirms the rights of wineries to operate consistent with their state licenses, free from overreaching local regulation. While the court declined to issue an injunction, the declaratory relief and damages awarded are a major victory.
As Michigan’s wine industry continues to grow, especially in areas like the Leelanau Peninsula, Southwest Michigan, and Tip of the Mitt, it’s critical that local zoning respects state law and treats wineries as legitimate agricultural and tourism enterprises—not nuisances to be stifled.
If you’re unsure whether your local ordinances comply with this ruling, or if you’ve been subject to enforcement that seems inconsistent with your state rights, it may be time to take a closer look.
If you have questions about how this ruling might affect your winery or need help reviewing your local zoning compliance, please reach out at mv@h2law.com.
Read the Full Wine Law Series HERE!