An appeals court ruled Tuesday that New York City's Board of Health exceeded its legal authority and acted unconstitutionally when it tried to put a size limit on soft drinks served in city restaurants.
The state Supreme Court Appellate Division panel upheld a lower court decision that had delayed the measure before it took effect in March.
The rule would stop many eateries from selling non-diet soda and other sugar-laden beverages in containers bigger than 16 ounces.
The beverage industry and other opponents say the measure is riddled with exceptions, unfair and ineffective.
The city's law department has promised an appeal.