Justia Government & Administrative Law Opinion Summaries
Articles Posted in Government & Administrative Law
Travelers Insurance v. Ultimate Logistics, LLC
Travelers Insurance Co. appealed a district court decision to affirm a final order of the Idaho Department of Insurance in favor of Ultimate Logistics, LLC (“Ultimate”). The Department of Insurance’s final order upheld a hearing officer’s determination that two mechanics working for Ultimate were improperly included in a premium-rate calculation made by Travelers. In its petition for review, Travelers argued the Department of Insurance acted outside the scope of its statutory authority in determining that the mechanics could not be included in the premium-rate calculation. The district court rejected this argument. Finding no reversible error in the district court's order, the Idaho Supreme Court affirmed. View "Travelers Insurance v. Ultimate Logistics, LLC" on Justia Law
TOMRA of North America, Inc. v. Dept. of Treasury
Plaintiff TOMRA of North America, Inc., brought two separate actions in the Court of Claims against the Michigan Department of Treasury, seeking a refund for use tax and sales tax that plaintiff had paid on the basis that plaintiff’s sales of container-recycling machines and repair parts were exempt from taxation under the General Sales Tax Act, and the Use Tax Act. Plaintiff moved for summary judgment, seeking a ruling on the question whether plaintiff’s container-recycling machines and repair parts performed, or were used in, an industrial-processing activity. The Court of Claims denied plaintiff’s motion and instead granted summary disposition in favor of defendant, holding that plaintiff’s container-recycling machines and repair parts were not used in an industrial-processing activity and that plaintiff therefore was not entitled to exemption from sales and use tax for the sale and lease of the machines and their repair parts. The Court of Claims found that the tasks that plaintiff’s machines performed occurred before the industrial process began, reasoning that the activities listed in MCL 205.54t(3) and MCL 205.94o(3) were only industrial-processing activities when they occurred between the start and end of the industrial process as defined by MCL 205.54t(7)(a) and MCL 205.94o(7)(a), respectively. Plaintiff appealed, and the Court of Appeals reversed, declining to interpret MCL 205.54t(7)(a) and MCL 205.94o(7)(a) as placing a temporal limitation on the activities listed in MCL 205.54t(3) and MCL 205.94o(3), respectively. To this, the Michigan Supreme Court concurred and affirmed the Court of Appeals. The matter was remanded to the Court of Claims for further proceedings. View "TOMRA of North America, Inc. v. Dept. of Treasury" on Justia Law
Gass et al. v. 52nd Judicial District
At issue before the Pennsylvania Supreme Court was a challenge to a local judicial district’s policy prohibiting the use of medical marijuana by individuals under court supervision, such as probationers. Relevant here, the applicable statutory authority, the Pennsylvania Medical Marijuana Act, contained an immunity provision protecting patients from government sanctions. In September 2019, the 52nd Judicial District -- comprised of the Lebanon County Court of Common Pleas (the “District”) -- announced a “Medical Marijuana Policy” under the issuing authority of the president judge. The Policy prohibited “the active use of medical marijuana, regardless of whether the defendant has a medical marijuana card, while the defendant is under supervision by the Lebanon County Probation Services Department.” Petitioners were individuals under the supervision of the Lebanon County probation agency who filed suit in the Commonwealth Court's original jurisdiction to challenge the validity of the Policy in light of the MMA's immunity provision. Separately, Petitioners filed an application for special relief in the nature of a preliminary injunction. Soon thereafter, the Commonwealth Court proceeded, sua sponte, to transfer the case to this Court, concluding that it lacked jurisdiction to grant the requested relief. The District then filed its response in this Court opposing preliminary injunctive relief. It claimed, among other things, that Petitioners were unlikely to prevail on the merits, arguing, inter alia, that the General Assembly didn’t intend the MMA to override the courts’ ability to supervise probationers and parolees. After review, the Pennsylvania Supreme Court granted Petitioners' request for declaratory and injunctive relief. The Policy was deemed to be contrary to the immunity accorded by the MMA, and as such, should not be enforced. "[N]othing impedes a revocation hearing or other lawful form of redress, where there is reasonable cause to believe that a probationer or other person under court supervision has possessed or used marijuana in a manner that has not been made lawful by the enactment." View "Gass et al. v. 52nd Judicial District" on Justia Law
Stalowy v. Flathead Conservation District
The Supreme Court affirmed the judgment of the district court upholding the declaratory ruling of the Flathead Conservation District asserting jurisdiction over David and Jacqueline Stalowy's dredging project, holding that the district court did not err.The Stalowys applied for permits with the District to conduct dredging activities on their Flathead County property. For the District to have jurisdiction under the Natural Streambed and Land Preservation Act of 1975 (Act), Title 75, chapter 7, Mont. Code Ann., the proposed dredging work must result in a "change in the state" of a "natural, perennial-flowing stream." At issue was whether North Bear Creek and other waterbodies on the Stalowys' property met the definition of a “stream." The District issued a declaratory ruling asserting jurisdiction over the Stalowys' property and projects. The district court affirmed. The Supreme Court affirmed, holding that the District had jurisdiction over the project. View "Stalowy v. Flathead Conservation District" on Justia Law
Elim Romanian Pentecostal Church v. Pritzker
In March 2020, Illinois Governor Pritzker issued an executive order to reduce transmission of the coronavirus that, among other things, capped at 10 the number of people who could attend religious gatherings. A list of “essential” functions exempt from the 10-person cap included organizations providing food, shelter, and social services, and other necessities of life. Other gatherings, such as concerts, are forbidden, regardless of size.The plaintiffs sued under 42 U.S.C. 1983, arguing that the limit effectively foreclosed in-person religious services, even though they were free to hold multiple 10-person services, and that alternatives—online services or services in parking lots while worshipers remain in cars—are inadequate. Before the case was argued, the Governor issued a new order, which permits the resumption of all religious services, with the 10-person cap as a “recommendation.”The Seventh Circuit found that the issue was not moot but declined to grant relief. Illinois has not discriminated against religion and has not violated the First Amendment. While warehouse workers and people who assist the needy may be at the same risk as people who gather for large religious worship, movies and concerts are a better comparison group. By that standard, any discrimination has been in favor of religion. While all theaters and concert halls in Illinois have been closed since mid-March, sanctuaries and houses of worship were open, though to smaller gatherings. View "Elim Romanian Pentecostal Church v. Pritzker" on Justia Law
In re Trenton Farms RE, LLC Permit No. MOGS10520
The Supreme Court affirmed the decision of the clean water commission approving Trenton Farms' permit to establish a twin concentrated animal feeding operation (CAFO), holding that House Bill No. 1713 (HB 1713) does not violate the original purpose, single subject, or clear title requirements of the Missouri Constitution and that there was sufficient evidence regarding the CAFO's protection from a 100-year flood.The clean water commission affirmed the department of natural resource's issuance of a permit to Trenton Farms to establish a CAFO. Hickory Neighbors United, Inc. appealed, arguing (1) HB 1713, which amended Mo. Rev. Stat. 644.021.1 to change the criteria for members of the commission, violated Missouri Constitution article III's original purpose requirement and single subject and clear title requirements; and (2) there was insufficient evidence that CAFO's manure containment structures would be protected from inundation or damages in the event of a 100-year flood, a requirement of 10 C.S.R. 20-8.300. The Supreme Court affirmed, holding (1) HB 1713 is constitutionally valid; and (2) there was sufficient evidence that CAFO structures met regulatory requirements. View "In re Trenton Farms RE, LLC Permit No. MOGS10520" on Justia Law
Dreyer Electric Co., LLC v. Director of Revenue
The Supreme Court reversed the decision of the Administrative Hearing Commission (AHC) that certain equipment purchased by Dreyer Electric Co. was exempt from sales tax because it was "replacement equipment" "used directly in the manufacturing process," as those terms are used in Mo. Rev. Stat. 144.030.2(5), holding that the AHC erred.Specifically, the Supreme Court held (1) the AHC correctly applied the three-factor "integrated plant doctrine" test set out in Floyd Charcoal Co. v. Director of Revenue, 599 S.W.2d 173 (Mo. banc 1980), to determine whether the subject replacement parts and equipment were "used directly in manufacturing"; but (2) the AHC erred in making specific findings as to some parts and then grouping all the parts together, including those it had not mentioned specifically in its decision, to find they were collectively integral to the electrical system that powered the machinery. The Court remanded the case for application of the integrated plant test to each type of replacement part or equipment purchased. View "Dreyer Electric Co., LLC v. Director of Revenue" on Justia Law
New York Stock Exchange LLC v. Securities and Exchange Commission
Petitioners filed suit challenging the SEC's adoption of a Pilot Program, Rule 610T, which was designed to gather data so that the Commission might be able to determine in the future whether regulatory action was necessary.The DC Circuit granted the petitions for review, holding that the SEC acted without delegated authority from Congress when it adopted Rule 610T. The court explained that the Pilot Program emanates from an aimless "one-off" regulation, i.e., a rule that imposes significant, costly, and disparate regulatory requirements on affected parties merely to allow the Commission to collect data to determine whether there might be a problem worthy of regulation. In this case, the Commission acted solely to "shock the market" to collect data so that it might ponder the "fundamental disagreements" between parties affected by Commission rules and then consider whether to regulate in the future. The court held that this was an unprecedented action that clearly exceeded the SEC's authority under the Exchange Act. Accordingly, the court vacated the rule and remanded. View "New York Stock Exchange LLC v. Securities and Exchange Commission" on Justia Law
Friends of Animals v. Bernhardt
Appellants, conservative organizations and a safari guide, filed suit challenging the Service's actions governing the import of sport-hunted animal trophies from Africa. Initially, appellants challenged certain findings the Service made, the Service then withdrew some findings following the outcome of a similar case, and then the Service announced that in the future it would proceed by informal adjudication.The DC Circuit affirmed the district court's rejection of appellants' claims on appeal, holding that appellants' challenges to the 2017 Zimbabwe findings are moot because the March Memo had already eliminated their legal effects. The court rejected appellants' challenges to the March Memo's withdrawal of more than twenty prior enhancements and on-detriment findings, and held that the district court's approach of evaluating the effect of each withdrawal in the March Memo individually was proper under the circumstances. Finally, the court rejected appellants' argument that it was unlawful for the Service to announce it would proceed in the future to implement the Endangered Species Act through informal adjudication. View "Friends of Animals v. Bernhardt" on Justia Law
Merck & Co., Inc. v. United States Department of Human and Health Services
Drug manufacturers challenged the Department's rule that broadly requires drug manufacturers to disclose in their television advertisements the wholesale acquisition cost of many prescription drugs and biological products for which payment is available under Medicare or Medicaid.The DC Circuit affirmed the district court's judgment in favor of the drug manufacturers, holding that the Department acted unreasonably in construing its regulatory authority to include the imposition of a sweeping disclosure requirement that is largely untethered to the actual administration of the Medicare or Medicaid programs. The court explained that, in the overwhelming majority of cases, the price that the rule compels manufacturers to disclose bears little resemblance to the price beneficiaries actually pay under the Medicare and Medicaid programs. Therefore, the court held that there is no reasoned statutory basis for the Department's far-flung reach and misaligned obligations, and thus the rule is invalid and is hereby set aside. View "Merck & Co., Inc. v. United States Department of Human and Health Services" on Justia Law