INDIANAPOLIS -- Federal judges in Indiana issued disparate rulings Thursday over the state's new law regulating the manufacture of e-liquids used in electronic cigarettes.
Early in the day, U.S. District Judge Sarah Evans Barker denied a request for an injunction against the law filed by Legato Vapors LLC of Kentucky.
The company argued that a section of the law requiring manufacturers contract with a security firm was so narrowly written that only one company in the United States – Mulhaupt's, in Lafayette – meets the criteria.
Barker found that the law does not violate the Dormant Commerce Clause, Equal Protection Clause or Indiana Constitution, and therefore should be allowed to stand.
A separate lawsuit against the Indiana Alcohol and Tobacco Commission found more success with Chief Judge Richard L. Young, of the United States District Court for Southern Indiana.
The lawsuit, brought by Goodcat LLC of Naples, Florida, claimed that the company contracted with multiple security firms to meet the stringent requirements of the law, but was still denied a permit by the ATC anyway.
Young agreed with Goodcat's request to issue a temporary restraining order on enforcement of the law through July 14. The restraining order only applies to Goodcat, however.
The new e-liquid regulation is set to go into effect July 1.