Chateau Vegas Wine v. S. Wine & Spirits

Southern Wine and Spirits, an importer and wholesaler of certain Bordeaux wines and French champagnes in Nevada, was granted the exclusive Nevada importer of certain Bordeaux wines and French champagnes. Southern Wine filed suit against Appellants, two importers and wholesalers of liquor in Nevada, after Southern Wine discovered Appellants were importing and selling the wines and champagnes in Nevada. Southern Wine sought a permanent injunction, alleging that Appellants' unlawful importation and sales of the wines and champagnes violated its exclusive trade and franchise rights under Nev. Rev. Stat. 369 and 597. The district court permanently enjoined Appellants from further importing and selling the wines and champagnes. The Supreme Court affirmed, holding that the district court properly granted injunctive relief where (1) Southern Wine complied with the requirements of the statutes, and therefore, Southern Wine established exclusive trade rights to import the wines and champagnes; (2) substantial evidence supported the district court's finding that Appellants infringed on Southern Wine's exclusive trade rights; and (3) Southern Wine was successful in demonstrating the merits of its action for permanent injunctive relief.