Northern Michigan Wineries Seek $50M Judgment from Peninsula Township

Northern Michigan Wineries Seek $50 Million from Peninsula Township

A legal battle unfolds in Northern Michigan as a group of wineries moves to collect a $50 million judgment against Peninsula Township. This comes after township officials reportedly turned a blind eye to proposals for a new ordinance and a reduced settlement.

Earlier this year, a federal judge determined that restrictive ordinances imposed by the township led to $50 million in losses for 11 wineries in the region. This verdict, delivered by U.S. District Court Judge Paul Maloney, cited the township’s regulations as “an impossible to understand ordinance and arbitrary enforcement of the same.” These rules prevented wineries from engaging in activities like selling branded merchandise or hosting large gatherings, and limited them to using only 25% of non-Peninsula-grown grapes.

Joseph Infante, an attorney with Miller Canfield representing the wineries, expressed frustration over the lack of communication from the township since the August ruling. “I’ve been sitting here waiting for a phone call, for a proposal,” Infante stated. “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.”

While Peninsula Township officials have not responded to requests for comment, they have formed a subcommittee to address the legal challenge. Meanwhile, the township has filed an appeal against the judgment with the 6th Circuit Court of Appeals, although Infante believes their chances of success are slim due to a lack of witness testimony during the trial.

Adding to their legal woes, two insurance companies are suing the township, arguing they should not be responsible for the settlement payment. Without a negotiation, the state’s tax assessment process in 2026 will determine how the $50 million judgment affects homeowners, potentially prompting the township to issue a long-term bond to ease the immediate financial burden on residents.

In a related issue, Bonobo Winery has initiated another lawsuit against the township following threats to revoke its special use permit. This action persists despite the earlier judgment that nullified the township’s contentious ordinance.