Supreme Court Update


Rowe v. New Hampshire Motor Transport Association, No. 06-457,
552 U.S. ____ (2008)

Decided February 20, 2008 | See opinion here

The Supreme Court held that a federal statute that prohibits States from enacting any law "related to" a motor carrier "price, route, or service" preempts two provisions of a Maine tobacco law that regulates the delivery of tobacco to customers within the state.  Although the Federal Aviation Administration Authorization Act of 1994 (FAAAA) forbids states to "enact or enforce a law ... related to a price, route, or service of any motor carrier," Maine adopted a law that (1) requires a state-licensed tobacco retailer to utilize a delivery company that provides a recipient-verification service confirming the buyer is of legal age, and (2) in prohibiting unlicensed tobacco shipments in the State, provides that a person is deemed to know that a package contains tobacco if it is marked as originating from a Maine-licensed tobacco retailer or if it is sent by someone whose name appears on a distribution list of unlicensed tobacco retailers.  In a lawsuit brought by transport carrier associations, the district court held that federal law preempts the "recipient-verification" and "deemed to know" provisions, and the First Circuit affirmed.  The Supreme Court granted certiorari.

In an opinion by Justice Breyer, the Supreme Court affirmed.  In Morales v. Trans World Airlines, Inc. (1992), the Court interpreted similar language in the Airline Deregulation Act of 1978 and determined that state enforcement actions having a connection with, or reference to, carrier rates, routes, or services are preempted—at least where the state laws have a significant impact on Congress' deregulatory and preemption-related objectives.  Relying on Morales, the Court concluded that the FAAAA preempts the Maine statute, whose "recipient-verification" provision focuses on trucking and other motor carrier services and substitutes its own governmental commands for competitive market forces.  Moreover, the "deemed to know" provision requires an examination of every package, thereby directly regulating a significant aspect of the motor carrier’s package pick-up and delivery service and creating an improper state-mandated regulation.  The Court rejected Maine’s argument that the FAAAA creates a public health exception to prevent minors from obtaining cigarettes, noting that neither the statute nor its legislative history mentions such an exception.

Justice Ginsburg concurred, noting that the FAAAA’s broad preemption provisions facilitate minors' access to tobacco and urging Congress to provide an effective solution to the problem.  In a short concurrence, Justice Scalia stated that he did not join the portions of the majority's opinion that rely on "the reports of committees of one House of Congress to show the intent of that full House and of the other" with respect to propositions that either are readily apparent from the statutory text or unnecessary to the disposition of the case.