Latest 2 Cases: Ass'n of Wash. Bus. v. Dep't of Ecology (Business Law), Lowe's Home Ctrs., LLC v. Dep't of Revenue (Business Law)

The Intra-Party Fight Among the Democratic Candidates Is Necessary and Healthy

NEIL H. BUCHANAN

UF law professor and economist Neil H. Buchanan explains why the Democratic presidential candidates attacking each other over policy differences and other issues rather than unifying to oppose President Trump in the general election. Buchanan argues that, perhaps illogically, the infighting is essential and a healthy part of the process.

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Ass'n of Wash. Bus. v. Dep't of Ecology

Docket: 95885-8

Opinion Date: January 16, 2020

Judge: Debra Stephens

Areas of Law: Business Law, Civil Procedure, Environmental Law, Government & Administrative Law

At issue was the promulgation of a novel rule by the Washington Department of Ecology addressing climate change. Specifically, the Washington Supreme Court was asked to determine whether the Washington Clean Air Act granted the Department broad authority to establish and enforce greenhouse gas emission standards for businesses and utilities that did not directly emit greenhouse gases, but whose products ultimately did. The Department claimed and exercised such authority in promulgating the rule at issue. The Supreme Court held that by its plain language and structure, the Act limited the applicability of emissions standards to actual emitters. "Ecology's attempt to expand the scope of emission standards to regulate nonemitters therefore exceeds the regulatory authority granted by the Legislature." The Court invalidated the Rule to the extent that it exceeded the Department's regulatory authority, while recognizing the Department could continue to enforce the Rule in its authorized applications to actual emitters.

Lowe's Home Ctrs., LLC v. Dep't of Revenue

Docket: 96383-5

Opinion Date: January 16, 2020

Judge: Barbara Madsen

Areas of Law: Business Law, Civil Procedure, Government & Administrative Law, Tax Law

Lowe's Home Centers sought reimbursement of state sales taxes and Business and Occupation ("B&O") taxes from the Washington Department of Revenue ("DOR") because it contracted with banks to offer private-label credit cards to its customers, and agreed to repay the banks for losses it sustained when customers defaulted on their accounts. RCW 82.08.050 provided that a seller must collect and remit sales taxes to the State; for sellers unable to recoup sales taxes from buyers, RCW 82.08.037(1) provided that sellers could claim a deduction "for sales taxes previously paid on bad debts." In a split decision, the Court of Appeals affirmed the trial court's denial of reimbursement. After its review, the Washington Supreme Court held that although banks were involved in the credit transaction, Lowe's was still the seller burdened with the loss from its customers' defaults, including their nonpayment of the sales taxes. Accordingly, the Supreme Court reversed the Court of Appeals.