The plan, pushed by Mayor Michael Bloomberg, sought to ban the sale of non-diet soda in 16-ounce-or-larger cups. The plan, which drew criticism for being too invasive, was called "arbitrary, capricious and beyond the city's regulatory powers" by New York Supreme Court Judge Milton Tingling after a group of businesses sued the city to prevent the law's implementation.
The First Division of the state Supreme Court's Appellate Division heard the Bloomberg administration's appeal and Tuesday sided with Tingling's ruling, USA Today reported.
"Like Supreme Court, we conclude that in promulgating this regulation the Board of Health failed to act within the bounds of its lawfully delegated authority," appellate judges wrote in a unanimous decision.
Bloomberg vowed to appeal the ruling to the state's top appellate court, calling Tuesday's decision a "temporary setback," The Wall Street Journal said.
"Since New York City's ground-breaking limit on the portion size of sugary beverages was prevented from going into effect on March 12, more than 2,000 New Yorkers have died from the effects of diabetes," Bloomberg said. "Also during that time, the American Medical Association determined that obesity is a disease and the New England Journal of Medicine released a study showing the deadly, and irreversible, health impacts of obesity and Type 2 diabetes -- both of which are disproportionately linked to sugary drink consumption."
While Bloomberg vowed to appeal he's running short on time. He will step down as mayor Dec. 31 and it is unclear whether his successor will continue to wage the appeals process.