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Aug. 29, 2002, 11:00PM

Judge cuts flow of out-of-state merlot

Wine import ban intact as state appeals ruling

By ROSANNA RUIZ
Copyright 2002 Houston Chronicle

Direct imports of out-of-state wine have dried up again.

For more than a month, Texans could order from out-of-state wineries, thanks to a federal judge's ruling that the ban on such imports was unconstitutional.

The same judge continued her stance Thursday that the law is unconstitutional, but she granted the time for the state to appeal her ruling or until the Texas Legislature can amend the law.

Last month, U.S. District Judge Melinda Harmon decreed Texas' ban on direct import of out-of-state wine unconstitutional because it amounted to "economic protectionism." Her ruling included an injunction preventing the state from enforcing the law.

Now, the injunction has been suspended, meaning connoisseurs will have to again rely upon local retailers or travel to get their favorite merlot.

Because she sided with the three Houston wine collectors who challenged the law in their suit, Harmon also ordered the state Thursday to pay more than $71,000 in attorney's fees and $260 in costs to the plaintiffs' attorney Mark C. Harwell of Houston. The state will pay $20,000 in fees to Harwell's co-counsel, Sterling W. Steves of Fort Worth.

Neither Harwell nor Steves returned phone calls seeking comment. A spokesman for the attorney general's office declined to comment because he had not seen the judge's order.

For years, outside wine producers had to rely on licensed in-state distributors to get their product to Texas markets.

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