On June 22, the Texas Supreme Court decided an important environmental case, City of Laredo, TX v. Laredo Merchants Assoc. Without dissent, the Court held that the City of Laredo’s 2014 ordinance, enacted to create a “trash-free” city, was preempted by the Texas Health & Safety Code and, in particular, Section 361.0961(a)(1)). The “local antilitter ordinance prohibit[s] merchants from providing ‘single use’ plastic and paper bags to customers for point-of-sale purchases.”
SCOTUS Changes Sales and Use Tax Collection Nexus
This morning, our colleagues on the State & Local Tax team published their Client Alert titled The U.S. Supreme Court Changes Sales and Use Tax Collection Nexus. In South Dakota v. Wayfair, Inc., the Court overrules the “physical presence” requirement as “unsound and incorrect.” Takeaways from the Court’s decision include:
- South Dakota law satisfies the Commerce Clause “substantial nexus” requirement based on the “economic and virtual contacts” with the State.
- The Wayfair decision does not prohibit the retroactive application of this new standard for Commerce Clause “substantial nexus.”
- The decision strikes a blow to the Court’s stare decisis jurisprudence.
Fourth Circuit Rejects “Constructive Submission” Theory in Case against West Virginia
On June 20, the U.S. Court of Appeals for the Fourth Circuit decided what be a very important decision for companies with mining interests in West Virginia, impacting their ability to comply with the Clean Water Act (CWA). Ohio Valley Environmental Coalition, et al., v. Pruitt, Administrator of EPA involves claims by several environmental groups against the Environmental Protection Agency (EPA) alleging that EPA failed to perform its nondiscretionary duty under the CWA to promulgate pollutant limits for biologically impaired waters in West Virginia. Although it found that the environmental plaintiffs have standing, the Court of Appeals reversed the District Court’s order granting summary judgment in their favor.
Fourth Circuit Address “Political Question” Doctrine in Case against Government Contractor
On June 20, 2018, the U.S. Court of Appeals for the Fourth Circuit decided the case of In re: KBR, Inc. Burn Pit Litigation, affirming the ruling of the U.S. District Court for the District of Maryland that the “political question” doctrine bars the plaintiff servicemembers’ personal injury lawsuits against Kellogg Brown & Root and Halliburton (KBR), government contractors providing environmental services to the U.S. military in Iraq and Afghanistan.
“The Constitution entrusts the President and Congress, not the courts, with the power to resolve political questions.”
SCOTUS Narrows Holding in America Pipe Case
Today, our colleague Mark Litvack published his Client Alert titled The Supreme Court Narrows Its Holding in American Pipe & Construction Co. v. Utah. Takeaways include:
- The Court bars previously absent class members from bringing subsequent class actions outside the applicable statute of limitations period.
- The Court’s decision in China Agritech, Inc. v. Resh cements a new limit on the filing of successive class actions.
Ninth Circuit Decision Enforcing Indian Treaty Fishing Rights Affirmed by an Equally Divided Supreme Court
On May 19, 2017, the Ninth Circuit, United States v. Washington, affirmed the District Court’s ruling that the State of Washington, in building and maintain culverts that interfered with the Nineteenth Century Treaties with several Indian tribes, violated those treaties, which impelled the District Court to issue an injunction ordering the State of Washington to correct its “offending culverts.” The U.S. Supreme Court agreed to hear the State’s appeal, and on Monday, the Court held that, with Justice Kennedy’s deciding not to take part in the appeal, the Ninth Circuit’s ruling was affirmed by an equally divided court.
Court of Federal Claims: Upstream Hurricane Harvey Case Will Proceed to Trial
On May 24, the U.S. Court of Federal Claims decided one of what may be many cases involving the terrible flooding wrought by Hurricane Harvey in the Houston, TX region. The Court of Federal Claims has divided thousands of pending claims into “upstream” and “downstream” categories, depending on whether the flooded properties were located upstream or downstream of two U.S. Army Corps of Engineers (Corps) flood control reservoirs that were constructed in the 1940s and 1950s. The case is In re Upstream Addicks and Barker (Texas) Flood-Control Reservoirs; however, the Court of Federal Claims’ order in this case applies to “all upstream cases.”
The Court of Federal Claims ruled
“The intensely factual nature of takings cases in flooding situations necessarily intertwines questions of jurisdiction and the merits. Thus the court has decided to exercise its discretion under [Rules of the U.S. Court of Federal Claims] 12(i) to defer ruling on the government’s motion to dismiss until trial.
Court of Federal Claims Confirms that EPA Was Responsible for “Taking” Steel Making Byproduct Purchased by a Private Party
On May 18, the U.S. Court of Federal Claims decided the case of Gadsden Indus. Park, LLC v. U.S., ruling that the Environmental Protection Agency (EPA) was responsible for the “taking” of byproduct materials produced by the steel making process and later purchased by plaintiff Gadsden Industrial Park (GIP) in a bankruptcy sale. The Court of Federal Claims held that GIP was entitled to compensation in the amount of $755,494 (together with interest).
SCOTUS: Follow-on Class Claims Time Barred Under American Pipe and Its Progeny
Today, the U.S. Supreme Court issued its decision in China Agritech v. Resh et al., a decision concerning the U.S. Court of Appeals’ application of the tolling rule first stated in American Pipe & Constr. Co. v. Utah and later clarified in Crown, Cork & Seal Co. v. Parker. The Court was called on to answer the question
“Upon denial of class certification, may a putative class member, in lieu of promptly joining an existing suit or promptly filing an individual action, commence a class action anew beyond the time allowed by the applicable statute of limitations?”
Ninth Circuit Rejects “Omission Theory” for Challenges to Product Labels
On June 4, 2018, the U.S. Court of Appeals for the Ninth Circuit decided the case of Hodsdon v. Mars, Inc., and affirmed the District Court’s dismissal of the plaintiff’s claims that, under California law (the Consumer Legal Remedies Act, the unfair competition law, Bus. & Prof. Code §§ 17200, et seq., and the false advertising law, Bus. & Prof. Code §§ 17500, et seq.), the defendant chocolate maker had a duty to disclose on its product labels that its goods were possibly being produced by child or slave labor.