Issue link: https://read.dmtmag.com/i/705606
BY JESSICA NALL AND NELL CLEMENT, FARELLA BRAUN + MARTEL LLP Being vigilant about state and local ordinance compliance is cr ucial when it comes to avoiding California's Unfair Competition Law investigations. UN FAIR COMPETITION IN THE WINE INDUSTRY industry businesses. These cases have addressed a wide range of conduct, from minor county code violations to alleged serious health and safety risks. UCL cases filed against winer- ies and vineyards have included allegations of grading and vegeta- tion removal outside of the ero- sion control plan approved by the county. In one case, this resulted in a total cost to the winery of $20,000. Another case involved allegations of a winery letting paid guests stay on its property in vio- lation of local zoning ordinances, resulting in a total cost to the win- a l i f o r n i a c o u n t i e s a r e increasingly using Califor- n i a 's U n f a i r C o m p e t i t i o n Law (UCL) to bring government enforcement actions against local businesses for myriad reasons. C a l i f o r n i a 's U C L i s e x t r e m e l y broad, encompassing unlawful, fraudulent or even unfair business practices. UCL cases can often result in large fines and costs — as well as reputational damage from negative publicity. Local district attorney and coun- ty counsel offices in winemaking regions are increasingly using the UCL to bring cases against wine ery of more than $30,000. A third case involved allegations of a win- ery doing construction on its prop- erty, including building a wine cave without proper permitting, result- ing in a total cost to the winery of $85,000. Other cases involving fish and game violations on win- ery property have also resulted in five-figure settlements. These costs only represent the amounts paid to settle the case. They don't include the costs to the businesses in attorney's fees (which can be high) or the reputational costs due to negative publicity resulting from the lawsuits. 1 1 0 V I N E YA R D & W I N E RY M A N A G E M E N T | J u l y - A u g 2 016 w w w. v w m m e d i a . c o m