Preemption

  • September 28, 2011
    Guest Post

    By Rochelle Bobroff, Directing Attorney, Herbert Semmel Federal Rights Project, National Senior Citizens Law Center


    On October 3rd at 10 am, the Supreme Court will hear, at its very first oral argument of the new term, a case of vital importance to low-income individuals who rely on safety-net programs, such as health insurance through the federal Medicaid program. The case, Douglas v. Independent Living Center, addresses whether people with limited income and resources can sue states that enact laws which conflict with federal Medicaid requirements, the same way that businesses sue states to challenge state consumer protection laws. The Supreme Court has declined to hear the merits of the Douglas case, not taking the question of whether the slashing of Medicaid reimbursement rates by California violated federal law. The only issue before the Supreme Court is whether the Supremacy Clause of the Constitution – commonly invoked by businesses challenging state environmental or consumer protection laws – applies to the claims of poor people, including low income older adults, who were unable to obtain medication from pharmacies due to the reimbursement rates being below cost.

    As in many cases that have denied disadvantaged individuals court access, the case involves a technical legal principle that doesn’t make for a great sound bite on the evening news. Specifically, the lawyers on Monday will debate whether beneficiaries of federal safety net programs, like Medicaid, are protected by the Supremacy Clause of the Constitution. That fundamental provision says that the “Constitution and the laws of the United States shall be the supreme law of the land, anything in the constitutions or laws of any State to the contrary notwithstanding.” The federal courts, including the Supreme Court, routinely permit businesses to get into court to argue that state consumer and worker protections conflict with federal laws, and, hence, must be “preempted,” i.e., invalidated. And all the federal circuit courts of appeal have held that that there is no basis in the text of the Constitution or in prior case law for denying low income individuals the same access to courts as businesses.

  • June 24, 2011
    Guest Post

    By Elizabeth B. Wydra, Chief Counsel, Constitutional Accountability Center. This analysis is cross posted at CAC’s Text & History blog.


    Two years ago in Wyeth v. Levine, the Supreme Court refused to allow federal food and drug law to displace state consumer-safety law.  Instead, the Court held that Diana Levine, a Vermont musician whose arm had to be amputated after Levine suffered adverse effects from Wyeth’s brand-name drug, Phenergan, could hold the drug manufacturer liable under state failure-to-warn laws—laws which hold drug and other manufacturers responsible for inadequate safety labels.  Yesterday, in a 5-4 ruling, the Supreme Court held in PLIVA, Inc. v. Mensing that generic drug manufacturers may not be sued under state failure-to-warn law because it would be “impossible” for the generic drug manufacturers to comply with both state failure-to-warn law and federal law.  Given the nearly identical storylines, how did the Supreme Court come up with a happy ending for consumers in Wyeth but a happy ending for big business in PLIVA?

    To be sure, there are important differences between the labeling laws for brand-name and generic drugs.  Federal law, for example, requires a generic drug to carry the same label as the brand-name drug it replicates.  But this “duty of sameness” for generic manufacturers is tempered by a duty under federal law to report problems with generic drugs.  So, while generic drug manufacturers cannot unilaterally change their labels, they can—and must—approach the FDA to seek to revise a drug’s label when they have reasonable evidence of a serious problem with the drug.  Such a label change would then go into effect for both brand-name and generic drugs. There is no guarantee, of course, that the FDA will act based on the information provided by the generic drug manufacturer, but the manufacturer’s attempt to achieve a safe and adequate warning label would nonetheless likely serve as a defense to state liability.  In other words, if the generic manufacturer did what it could under federal law, a state failure-to-warn claim should be preempted by federal law because it would be impossible for the manufacturer to comply with both federal and state law.

    But if a generic drug manufacturer doesn’t even try to comply with federal drug safety law and state failure-to-warn standards, it is difficult to see how it is “impossible” for the manufacturer to comply with both sets of laws.  As Justice Sotomayor explained in her PLIVA dissent, “because federal law affords generic manufacturers a mechanism for attempting to comply with their state-law duties to warn, . . . federal law does not categorically pre-empt state-law failure-to-warn claims against generic manufacturers.”  

    For the majority, led by Justice Thomas, to find impossibility preemption in this context is to twist the word “impossibility” beyond recognition.

  • March 8, 2011
    Guest Post

    By Rochelle Bobroff, Directing Attorney, Herbert Semmel Federal Rights Project, National Senior Citizens Law Center
    Headlines are filled with reports of states repudiating the federal approach to hot button issues such as health reform and immigration. Clashes between federal and state law often culminate in a trip to the court house, because under the United States Constitution, state laws that conflict with federal statutes are preempted and thus invalid. Preemption law suits are as American as apple pie, and have been widely utilized for well over a hundred years by businesses and individuals on all sides of the political spectrum to enforce numerous federal laws.

    Yet, a case recently accepted by the Supreme Court has the potential to restrict drastically the availability of preemption and thereby vastly increase state powers at the expense of the national government. Maxwell-Jolly v. Independent Living Center ("ILC") and consolidated cases address the preemption of a California law by the federal Medicaid statute. California is asking the Court to rule in ILC that Medicaid providers and beneficiaries do not have a cause of action for their claim that the slashing of reimbursement rates for prescription medications and other services was preempted. The Court's decision in this case could be targeted to barring court access to uphold safety-net statutes which protect the neediest and most vulnerable individuals. Nevertheless, the Court's decision could have wide-ranging implications for laws involving the environment, employment, immigration, civil rights, food and drug safety, elections and much more.

    One argument advanced by California is that preemption challenges should not be permitted for statutes enacted under the Constitution's Spending Clause. These laws give states millions or even billions of dollars of federal funds in exchange for the states participating in federal programs or complying with federal rules. Medicaid is not the only Spending Clause statute. Indeed, in the seminal Spending Clause case of South Dakota v. Dole, the Court upheld the constitutionality of conditioning federal highway funds on states' adoption of the minimum drinking age of 21. Other major Spending Clause statutes include education laws, housing laws, food stamps, and civil rights laws prohibiting discrimination on the basis of race, national origin, sex, and disability.

  • February 24, 2011
    Guest Post

    By David Franklin, an associate professor at DePaul University College of Law and author of the new ACS Issue Brief, Why Does Business (Usually) Win in the Roberts Court?
    On Tuesday, the Supreme Court ruled that people who are injured or killed by the side effects of vaccines cannot sue vaccine manufacturers for alleged design defects. Another day, another victory in the Supreme Court for a business defendant - and another victory for preemption, the legal doctrine under which state law can be nullified when it conflicts with the language or purpose of federal law, in this case the 1986 federal vaccine compensation statute.

    It was also yet another victory for the Chamber of Commerce of the United States. The Chamber, through its litigating affiliate, the National Chamber Litigation Center, regularly files briefs as an amicus curiae ("friend of the court") in the Supreme Court on behalf of the business community - and it regularly prevails.

    In a recent ACS Issue Brief, I crunch the numbers. Since Samuel Alito became a justice in 2006, the Court has decided 66 cases in which the Chamber of Commerce filed a brief. Of these cases, the party supported by the Chamber has won 46. That's a very high win rate: just under 70 percent. It suggests that while the arguments in the Chamber's briefs probably aren't swaying the justices (amicus briefs rarely do), they are finding a receptive audience at One First Street.

    Why has the Chamber been doing so well lately?

  • February 24, 2011
    Guest Post

    By Annie Decker, Visiting Assistant Professor, Benjamin H. Cardozo School of Law.
    Four-plus months after hearing oral arguments, which I discussed here, the U.S. Supreme Court yesterday issued a unanimous decision in Williamson v. Mazda. The Court held that a federal Department of Transportation (DOT) regulation that gave manufacturers some leeway in what kinds of seatbelts to install did not trump a defective design claim, among others, arguing that Mazda should have installed both shoulder and lap belts in a seat in the plaintiffs' minivan.

    Justice Breyer's majority opinion clarified that federal agencies such as the DOT can decide to give manufacturers a choice in designs without the DOT's objectives for leaving options open -- the reason being cost containment in this case -- always preempting state tort litigation. Going forward, therefore, manufacturers cannot argue that federal regulations that give them a choice between designs automatically translate into immunity from suits arguing that they, unfortunately, chose badly among the regulatory options. However, the Court also bolstered its obstacle preemption doctrine, which means that manufacturers can continue to argue that state tort suits conflict with important agency objectives.

    Through Williamson, the Court sought to stem the tide of lower court decisions misapplying Geier v. American Honda Motor Co. In Geier, the Court had found that an earlier version of the same federal regulation at issue in Williamson did, in contrast, impliedly preempt a state tort suit that challenged Honda's choice among passive restraint systems such as airbags and automatic seatbelts.

    While the Court rejected the preemption challenge, unlike in Geier, it methodically applied the Geier framework. Indeed, the decision is notable for its refusal to back down from Geier. Williamson entrenches Geier's approach to preemption cases where the relevant federal statute not only has an express preemption clause but also has an explicit so-called savings clause that preserves state tort suits from preemption. (The National Traffic and Motor Vehicle Safety Act declares that "[c]ompliance with" a federal safety standard, such as the DOT regulation here, "does not exempt any person [such as Mazda] from any liability under common law," such as a state-law defective design claim.) The Court in Williamson affirmed that such savings clauses do not kill preemption challenges. Instead, courts must move on to consider "ordinary conflict pre-emption principles." These include obstacle preemption, which asks whether state claims present an obstacle to an important federal regulatory objective. Yet the Court clarified that a preemptive conflict must be with a significant federal objective. Unlike the cost objective underlying the DOT's seatbelt regulation at issue in Williamson, preserving car manufacturers' flexibility was the agency's main consideration in giving manufacturers a choice over passive restraint systems in the provision at issue in Geier -- and the Court found that to be "significant regulatory objective[]."