Whiskey fungus nuisance case against Diageo can move ahead

LOUISVILLE, Ky. (AP) - Some Kentucky residents who claim a whiskey warehouse is causing black fungus to grow on their homes have received a court's permission to press their lawsuit against liquor giant Diageo.

Diageo Americas Supply distills and ages whiskey at warehouses in Louisville, resulting in tons of ethanol emissions.

The lawsuit filed by Louisville residents claims those emissions are a nuisance because they cause a growth called whiskey fungus to form on nearby properties. Whiskey fungus thrives in ethanol-rich environments.

The plaintiffs want an injunction that would require Diageo to curb its ethanol emissions.

Diageo argued that the nuisance claims were pre-empted by the federal Clean Air Act. On Monday, the 6th U.S. Circuit Court of Appeals rejected that argument.

The case now goes back to the district court for further proceedings.