Freehan v. Berg

CourtDistrict Court, N.D. Illinois
DecidedSeptember 25, 2025
Docket1:22-cv-04956
StatusUnknown

This text of Freehan v. Berg (Freehan v. Berg) is published on Counsel Stack Legal Research, covering District Court, N.D. Illinois primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Freehan v. Berg, (N.D. Ill. 2025).

Opinion

UNITED STATES DISTRICT COURT FOR THE NORTHERN DISTRICT OF ILLINOIS EASTERN DIVISION

TIMOTHY FREEHAN, et al., Plaintiffs No. 22 CV 4956 v. Judge Jeremy C. Daniel CYNTHIA BERG, et al., Defendants

MEMORANDUM OPINION AND ORDER This matter comes before the Court on cross-motions for summary judgment. [108], [112]. The plaintiffs, out of state wine retailer Full Pull Wines, LLC and Illinois wine consumers Timothy Freehan and Joseph Grody,1 challenge the constitutionality of the state’s liquor laws which prevent out-of-state retailers from delivering alcohol to in-state consumers. They allege this violates the dormant commerce clause of the U.S. Constitution. The defendants, Illinois Liquor Control Commission members2 and the Wine and Spirits Distributors of Illinois3 assert the challenged laws are legitimate exercises of state power under the Twenty-First Amendment. For the reasons given in this opinion, the Court concludes that the challenged liquor laws are constitutional and grants summary judgment in favor of the defendants.

1 Plaintiff Austin Marcum was dismissed with the consent of all parties. (R. 52) 2 Commissioner and Chairman of the Illinois Liquor Control Commission Cynthia Berg, along with Thomas Gibbons, Patricia Pulido Sanchez, Melody Spann Cooper, Julieta LaMalfa, Brian Sullivan, Donald O’Connell, and Steven Powell. 3 Intervening by right. (Text Order of 7/5/2022.) BACKGROUND Illinois, as most states, regulates alcohol commerce using a “three tier” system. (R. 126 (Plaintiffs’ Response to Defendants’ Statement of Facts (“Pls.’ Resp. DSOF”)

¶ 11.)4 At a high level, the system functions as follows. The state licenses three types of merchants: producers, distributors, and retailers. (Id.) Producers are permitted to sell alcohol to distributors. 235 ILCS 5/5-1(a). Distributors are permitted to purchase alcohol (from both in and out of state), wholesale it, store it, and sell it to licensed retailers. 235 ILCS 5/5-1(b). Retailers are permitted to purchase alcohol products from licensed distributors and sell them to Illinois consumers for consumption. 235 ILCS 5/5-1(d); (see also Pls.’ Resp. DSOF ¶ 12.) Retailers may ship alcohol to in-state

consumers. (Pls.’ Resp. DSOF ¶ 17.) These licenses are predominately exclusive; with certain exceptions producers cannot distribute or retail, and so on. (Id. ¶ 12.) To obtain a retail license, retailers must maintain a physical presence in Illinois. (R. 123 (Defendants’ Response to Plaintiff’s Statement of Facts (“Defs.’ Resp. PSOF”) ¶ 21.) This requirement, paired with the necessity of a retail license to ship alcohol to in-state consumers, creates the conditions to which the plaintiffs object:

out-of-state alcohol sellers cannot ship to customers in Illinois and Illinois consumers cannot order alcohol from out-of-state retailers. (Id. ¶¶ 22–25.) Plaintiffs Freehan and Grody are Illinois wine collectors. (Id. ¶¶ 1–2.) Many of the rare wines they seek to purchase are not sold by Illinois retailers. (Id. at ¶¶ 28–

4 For ECF filings, the Court cites to the page number(s) set forth in the document’s ECF header unless citing to a particular paragraph or other page designation is more appropriate. 31.) To access these rare wines, the plaintiffs would have to take time off work, travel to out-of-state retailers stocking the desired wines, and bear the expense and difficulty of transporting them home. (Id. at 33.) These bottles, which can cost

thousands of dollars each, must be “shipped under temperature-controlled conditions.” (Id. ¶ 31.) Both plaintiffs declare that, if allowed, they would purchase wines from out-of-state retailers. (R. 110-2 ¶ 9; R. 110-3 ¶ 9.) Plaintiff Full Pull Wines (“Full Pull”) is a Washington company that operates a licensed wine store in that state. (Defs.’ Resp. PSOF ¶ 12.) The owner of Full Pull is a highly respected wine writer, and through his store, maintains an extensive,

loyal, and nationwide customer base that trusts him to provide wine recommendations. (Id. ¶ 13–14.) Due to Illinois law, Full Pull is unable to sell to the subset of these customers who reside in the state, and has had to decline sales from Illinois residents. (Id. at 14–15.) However, Full Pull does occasionally ship to Illinois residents through a third party. (R. 126 (Plaintiffs’ Response to Defendant’s Statement of Facts (“Pls.’ Resp. DSOF”) ¶¶ 22–24.) It does so by transferring title to the wine to the buyer in

Washington, then routing the wine to Illinois by way of California using a third-party shipper. (Id.) The parties agree this process costs more than directly shipping the wines from Full Pull to an Illinois resident, and Full Pull does not pay Illinois taxes or report sales to Illinois officials. (Id.) The parties also agree that Full Pull would be allowed to open an Illinois retail location, acquiring the necessary license in the process, but does not wish to do so. (Id. ¶ 25.) If permitted, Full Pull would sell and ship wine directly to Illinois consumers. (Id. ¶ 6.) LEGAL STANDARD

Summary judgment is proper where “the movant shows that there is no genuine dispute as to any material fact and the movant is entitled to judgment as a matter of law.” Fed. R. Civ. P. 56(a); see also Celotex Corp. v. Catrett, 477 U.S. 317, 322 (1986). “A fact is ‘material’ if it is one identified by the law as affecting the outcome of the case.” Nat’l Am. Ins. Co. v. Artisan & Truckers Cas. Co., 796 F.3d 717, 722 (7th Cir. 2015). A genuine dispute as to any material fact exists if “the evidence is such that a reasonable jury could return a verdict for the nonmoving party.”

Anderson v. Liberty Lobby, Inc., 477 U.S. 242, 248 (1986). In ruling on a motion for summary judgment, the Court “construe[s] all facts and draw[s] all reasonable inferences in the nonmoving party’s favor, but the moving party may prevail ‘by showing an absence of evidence to support’ the nonmoving party’s claims.” Lewis v. Ind. Wesleyan Univ., 36 F.4th 755, 759 (7th Cir. 2022) (quoting Tyburski v. City of Chi., 964 F.3d 590, 597 (7th Cir. 2020)). While the Court

must give the nonmoving party “the benefit of reasonable inferences from the evidence,” it does not construe “speculative inferences in his favor.” White v. City of Chi., 829 F.3d 837, 841 (7th Cir. 2016). “Where, as here, the parties file cross-motions for summary judgment, all reasonable inferences are drawn in favor of the party against whom the motion at issue was made.” Tripp v. Scholz, 872 F.3d 857, 862 (7th Cir. 2017) (citing Dunnet Bay Constr. Co. v. Borggren, 799 F.3d 676, 688 (7th Cir. 2015)). ANALYSIS I. PRIOR DECISIONS ON THREE-TIER ALCOHOL REGULATORY SYSTEMS States are normally forbidden from discriminating against interstate commerce, but the Twenty-First Amendment grants states the power to “maintain

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Freehan v. Berg, Counsel Stack Legal Research, https://law.counselstack.com/opinion/freehan-v-berg-ilnd-2025.