Law was set to take effect Tuesday

A judge struck down New York City's ban on sugary beverages larger than 16 ounces on Monday, less than 24 hours before the law was scheduled to go into effect. In a decision [PDF] from the state's Supreme Court in New York County, Judge Milton Tingling found that the Board of Health's rule was "arbitrary and capricious."
New York City's Board of Health had approved the rule [PDF] last September, a significant public health effort from Mayor Michael Bloomberg. In his ruling Tingling also said the rule violated the separation of powers, that this type of action should be determined by the city council, not the New York City's Board of Health. "The Rule would not only violate the separation of powers doctrine, it would eviscerate it," Tingling wrote. "Such an evisceration has the potential to be more troubling than sugar sweetened beverages."
A lawsuit challenging the rule was brought by a coalition of groups including a statewide coalition of Hispanic chambers of commerce, New York's Korean-American Grocers Association, several unions and the American Beverage Association.
City officials immediately stated they would appeal the ruling. (Note that the Supreme Court which issued this decision is a trial-level court in New York.)