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Tennessee Enacts Law to Protect Small Businesses from ABC

News Summary

Tennessee has passed a new law aimed at protecting small businesses from the Tennessee Alcoholic Beverage Commission’s deceptive practices. Following a legal struggle, Lookout Mountain Winery’s owner incurred significant legal fees despite winning a key court battle against the ABC over a wrongful citation for underage drinking. The legislation allows judges to mandate reimbursements from the ABC, but does not guarantee recovery for businesses. Advocates are calling for increased accountability within the agency to prevent such incidents in the future.

Tennessee has recently enacted a law aimed at protecting small businesses from the actions of the Tennessee Alcoholic Beverage Commission (ABC). The law was prompted by an investigation revealing that the ABC employed deceptive tactics against Lookout Mountain Winery, leading to significant financial strain on the business.

Lookout Mountain Winery, located in Guild, Tennessee, received a $5,000 citation for underage drinking after a minor took wine without permission or payment. This minor did not interact with any staff members, a fact corroborated by court records. Following a legal battle, a judge dismissed the citation, calling the ABC’s actions a “ruse” and contrary to its own regulations.

Despite prevailing in court, the winery’s owner, Chuck Bordogna, incurred $37,000 in legal expenses. The new law provides judges with the authority to mandate that the ABC reimburse businesses when they are wrongfully cited; however, it does not ensure that such reimbursements will occur. Thus, Bordogna’s substantial legal costs remain unpaid, leaving him without a clear avenue for recovery.

In an effort to recover his legal fees, Bordogna is filing a grievance with the Tennessee Small Claims Commission. His attorney believes that their client should be entitled to compensation for the costs associated with defending his business’s reputation, which has been called into question by the ABC’s actions.

In response to the scrutiny surrounding their procedures, the ABC has stated that its agents have undergone additional training since the incident. However, Bordogna feels that merely retraining staff members is inadequate and calls for greater accountability within the agency. He argues that those responsible for the tactics used against his winery should be dismissed rather than simply retrained.

The new legislation has gained support from various lawmakers, including State Representative John Ray Clemmons, who is advocating for further changes that would compel the state to cover legal costs when it loses cases against businesses. State Senator Janice Bowling echoed similar sentiments, condemning the ABC’s tactics as “despicable” and “pure trickery.”

The Lookout Mountain Winery is a family-owned establishment with deep personal roots and a rich history, situated near Nickajack Lake. Despite their legal victory, the Bordognas are left grappling with the repercussions of the ABC’s deceptive actions and are hopeful for further developments in their ongoing claim with the Tennessee Claims Commission.

This new law marks a significant shift in the relationship between small businesses and regulatory agencies in Tennessee, aiming to bolster protections for entrepreneurs and enhance accountability for state actions. As the situation unfolds, small business owners will be watching closely to see how the law is applied and whether it fulfills its promise of protection against unwarranted citations.