FedEx accuses NLC of set-up to protect wine monopoly

FedExis accusing the Newfoundland Liquor Corporation of a set-up, saying the provincial crown corporation engaged in underhanded business in order to protect its monopoly over winein the province.

Twoyears ago, the NLC chargedFedExfor bringing a private shipment of wine from British Columbia into the province.

Private wine shipments from outside Newfoundland and Labrador are illegal, according to provincial regulations.Couriers, however, are exempt from federal restrictions oninterprovincialliquor shipments.

In court Friday,Crown prosecutor SheldonSteevesadmittedthere was no case and asked to withdraw the charge.

However, the lawyer forFedEx, ScottMaidment, asked for the charge to be dropped altogether.

He also requested the NLC pay $155,000 forFedEx'slegal costs.

NLC personordered wine,FedExsays

Maidmentsaid there is evidence that aNLC agent ordered the shipment under his wife's name. He said the corporation was trying to bullyFedExinto compliance, and said it forcedFedExto pay unnecessary legal expenses.

The NLC directed requests for comment to the provincial government.

Finance Minister RossWisemansaid he was aware of the case, but that government had no involvement in the decision to chargeFedEx.

"I'm not in a position to comment about whether their approach was appropriate or not. I'm not aware of how they went about doing it, actually," he said.

Wisemansaidrestrictinginterprovincialliquor shipments is an important source of revenue and that there are no plans to change thelaws.

Judge Mike Madden ordered that the charges be dropped. He will rule on the legal costs at a later date.