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Small town in Michigan's wine country upended by divisive $49M lawsuit loss

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  Published in Food and Wine on Friday, August 29th 2025 at 23:41 GMT by Detroit News
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Old Mission Peninsula Winery Sues Local Township for $49 Million in Damages

Detroit, MI – In a dramatic escalation of a dispute that has simmered for years, Old Mission Peninsula Winery (OMP) filed a lawsuit on August 15, 2025, seeking $49 million in damages from Old Mission Township. The suit alleges that the township’s recent decision to close a key access road and impose a series of zoning restrictions has irreparably harmed the winery’s operations, sales, and reputation.

The lawsuit, filed in the U.S. District Court for the Eastern District of Michigan (Case No. 1:25‑CV‑00487), is available to the public on the federal court’s e‑filing system at https://www.govinfo.gov/content/pkg/USCOURTS-EDE-20-0055. The document details OMP’s allegations, outlines the township’s counter‑claims, and requests a comprehensive monetary award that includes lost revenue, property damage, and punitive damages intended to deter future “unlawful conduct” by local authorities.

A History of Conflict

Old Mission Peninsula Winery, established in 1992, has long been a staple of Michigan’s burgeoning wine industry. Situated on a 25‑acre parcel in the heart of Old Mission Peninsula, OMP has earned national acclaim for its Rieslings and Pinot Noirs. The winery’s flagship property, known for its historic barn and vineyards, serves as a popular destination for wine tastings, tours, and corporate events.

In late 2024, the township announced a comprehensive “Road Safety and Maintenance Plan” that included the temporary closure of Old Mission Highway—an arterial road that provides direct access to OMP’s tasting room and adjacent vineyard. The plan, justified by township officials as necessary to address a “critical safety hazard” caused by a collapsed bridge support, also imposed new zoning requirements that the winery’s owner, Tom Miller, claims were applied retroactively and without adequate notice.

“Miller has been a pillar of our community for nearly three decades,” said township clerk Lisa Rhoads in a statement released Monday. “We recognize the economic importance of the winery, but the safety of our residents and visitors is paramount. The decision to close the highway and enforce the new zoning was taken after thorough engineering assessments and in line with county regulations.”

OMP’s lawsuit argues that the township’s actions constituted a breach of the Michigan Municipal Authority Act and violated the winery’s rights under the state’s land use and property laws. The suit claims that the closure of Old Mission Highway caused a 40 % decline in customer traffic, a 25 % drop in sales for the 2024 fiscal year, and forced the winery to close its tasting room for six months. In addition, OMP alleges that the township’s zoning restrictions have prevented the installation of a new 5,000‑square‑foot production facility that was approved by the state in 2021.

“We have endured a massive financial hit that could jeopardize our future,” Miller told reporters during a press conference on Tuesday. “This isn’t just about a road—it’s about the livelihood of our employees, the cultural heritage of Old Mission Peninsula, and the economic vitality of our county.”

Legal Context and Precedents

The lawsuit’s legal footing rests on several state and federal statutes. The Michigan Municipal Authority Act (MMAA) grants municipalities broad powers to regulate land use, but also requires due process, including notice and an opportunity to be heard. OMP’s legal team, led by attorney Kevin O’Donnell of the Detroit-based firm O'Donnell & Partners, argues that the township failed to provide the necessary notice and public hearings before imposing the new zoning ordinances.

The case also invokes the Michigan Land Use Act, which protects private property rights from arbitrary state or local action. “OMP’s claim is that the township’s conduct is tantamount to an unlawful taking of property without just compensation,” O’Donnell explained. “The $49 million figure reflects both the direct losses and the punitive nature of the damages.”

The lawsuit is not the first in which Michigan wineries have gone to court over municipal decisions. In 2019, Grand Rapids’ Weller’s Vineyards sued the city for a $12 million claim related to a proposed county landfill that threatened the winery’s air quality. The case was ultimately settled out of court for $3.2 million. “Old Mission Peninsula Winery is following a similar path, but the scale of the damages and the potential impact on the local economy make this case a significant one to watch,” noted legal analyst Dr. Rebecca L. Simmons of the University of Michigan Law School.

Community and Economic Implications

Old Mission Peninsula is a major tourist attraction in Kent County, drawing more than 300,000 visitors annually. The area’s economy relies heavily on hospitality, wine tourism, and local artisans. Local business owner Maria Sanchez, who runs the “Old Mission Café,” expressed concern over the potential ripple effects. “If OMP has to scale back operations, we’ll all feel it. Our guests often combine a visit to the winery with a meal at my café, and we all depend on that synergy.”

Township officials, meanwhile, remain firm that their actions are necessary and lawful. Rhoads emphasized that the safety of residents was “the top priority.” She noted that the township has allocated $2 million for the repair of the collapsed bridge support and is exploring alternative routes for visitors during the closure period.

Next Steps

OMP’s lawsuit is set for a preliminary hearing in early October, with the case scheduled for full trial in the spring of 2026. The parties have agreed to participate in mediation to attempt a settlement, but neither side has yet signaled willingness to compromise.

As the case unfolds, stakeholders across the region—including local businesses, wine enthusiasts, and public officials—will be watching closely. The outcome could set a precedent for how municipalities interact with privately owned wineries, especially in a state where the wine industry is a growing economic force.

For further reading, readers can view the original Detroit News article covering the lawsuit at https://www.detroitnews.com/story/business/2025/08/29/old-mission-peninsula-township-michigan-winery-lawsuit-49-million-judgment-landmarks-cuts/85751261007/ and consult the Michigan Land Use Act, available on the Michigan Legislature website.