PENINSULA TWP. — A years-long legal battle involving 11 wineries in the Old Mission Peninsula could be close to over.
A federal judge ruled Monday that Peninsula Township must pay nearly $50 million to the wineries, who he says were unfairly restricted from hosting potentially lucrative events.
The township passed a series of ordinances in 2017 that restricted the wineries’ abilities to host events with more than 75 people, to produce their own merchandise and to use grapes from outside of the peninsula.
Judge Paul Maloney, U.S District Judge for the Western District of Michigan, said that Peninsula Township must pay tens of millions of dollars to the wineries.
He said that the ordinances were “unreasonable, burdened (the wineries’) operations, and at times made them rethink continuing their enterprises on the (Old Mission Peninsula).”
Chris Baldyga, co-founder of the 2 Lads Winery, says that the ordinances prevented his business from hosting events.
“To notify them that we wanted to do a small event — they would say, ‘nope. It said in the statement of intent, you cannot host a small group.’ And you would go, it’s 20 people… and they would say, ‘nope, that sounds like a social event for hire.’ So they kind of picked and chose,” Baldyga said.
The group Wineries of Old Mission Peninsula, or WOMP, sued the township over the ordinances in 2020. Peninsula Township repealed the ordinances two years later.
The township argued that the policies helped preserve the area’s rural character and to support local agriculture.
Baldyga says that the ruling will provide greater stability for his business, potentially allowing new investments in the area.
“This gives us, you know, the ability, not only to think longer term, but to be more confident in decisions to plant more grapes, to acquire more contracts with grape growers and local fruit,” he said.
The judge awarded more than $42 million dollars to the wineries. The highest single payment comes in at $11.7 million to Chateau Chantal.
The judge also awarded $6.1 million total to the wineries for potential small event profits.
While the ruling is a significant development, the township still could appeal.
Maura Sanders, current supervisor of Peninsula Township, said in a statement that they disagree with parts of the ruling and may appeal.