A group of Northern Michigan wineries say they are pursuing collection of a $50 million lawsuit judgment from Peninsula Township, after township officials ignored their offers to negotiate a new ordinance and a smaller settlement.
This summer, a federal district judge ruled that Peninsula Township's restrictive and unconstitutional ordinance had cost the region's 11 wineries $50 million in lost business and damages — a staggering sum since the township only has about 6,000 residents.
The restrictions included not permitting the wineries to sell branded merchandise, hold gatherings larger than 75 people, or advertise wine tastings. The ordinance also banned the wineries from using more than 25% of non-Peninsula-grown grapes in their wines. In his ruling, U.S. District Court Judge Paul Maloney called it “an impossible to understand ordinance and arbitrary enforcement of the same.”
Miller Canfield attorney Joseph Infante said since the judge's ruling in August, the township has ignored his winery clients' offers to settle for a smaller amount.
"I've been sitting here waiting for a phone call, for a proposal," Infante said. "We're willing to negotiate, we're willing to talk with you, but you actually need to respond to us. Talking to a brick wall only goes so far."
Township officials did not respond to multiple requests from Michigan Public for a comment on the development, though the township did form a subcommittee this week meant to negotiate with the wineries.
Peninsula Township is meanwhile appealing the trial court's judgment in the 6th Circuit Court of Appeals, but Infante said in his opinion, it's very unlikely they'll win that appeal, after township attorneys failed to call witnesses to testify during the trial.
The township is also being sued by two of its insurance companies, which are arguing they are not liable to pay any of the settlement.
Infante said unless the township agrees to negotiate, the state's tax assessment process in early 2026 will determine how much each homeowner will have to pay of the $50 million judgment, based on the value of the homestead. The assessment will appear on the homeowners 2026 summer tax bills.
He said it's likely the township would be forced to take out a 20- or 30-year bond in that case, so residents don't have to pay their full assessment all at once.
The township faces yet another lawsuit filed by Bonobo Winery, after the township threatened to revoke its special use permit over events the winery held. That's despite the township's ordinance having been revoked as a result of the earlier lawsuit.
