UPDATE: US High Court Asks Admin's Views On City Health-Care Law
06 October 2009 - 4:05AM
Dow Jones News
The U.S. Supreme Court on Monday asked the Obama administration
for its views on a San Francisco law that requires medium and
large-sized companies to pay for minimum employee health-care
benefits.
Under the law, businesses operating in the city must either
offer their employees health-insurance coverage or pay into a city
fund that provides health care to uninsured San Francisco
residents.
A local restaurant association, with the support of other
business groups, filed a lawsuit challenging the city ordinance,
saying it was burdensome on businesses and interfered with a
federal law that governs employee-benefit plans.
The Supreme Court on Monday asked U.S. Solicitor General Elena
Kagan, the federal government's lawyer at the high court, for the
administration's views on whether the justices should consider the
case.
The San Francisco-based 9th U.S. Circuit Court of Appeals upheld
the city law last year.
San Francisco officials said they were facing a health-care
crisis and were well within their rights to enact a law to address
that crisis. The city said nothing in federal law immunized
businesses from being required to spend money on health care.
The U.S. Chamber of Commerce and an association of retailers are
among those urging the high court to strike down the San Francisco
law.
The case is Golden Gate Restaurant Assn. v. City and County of
San Francisco, 08-1515.
The high court also asked the Obama administration Monday for
its views on three other business cases.
One case involves Costco Wholesale Corp.'s (COST) appeal of a
ruling that said the discounter could be held liable for copyright
infringement for re-selling luxury Swiss watches it obtained
through second-hand sources.
At issue is a lawsuit filed by Omega SA, a unit of Swatch Group
AG (UHR.VX ), alleging that Costco violated U.S. copyright law in
2004 by selling Omega Seamaster watches it obtained from third
parties who had imported them into the U.S.
Amazon.com Inc. (AMZN), eBay Inc. (EBAY), Target Corp. (TGT) and
a trade association of retailers are supporting Costco in the case.
They said the lower court ruling was a concern to companies that
re-sell foreign-made goods and could lead to higher prices for
consumers. The case is Costco Wholesale Corp. v. Omega SA,
08-1423.
Another case centers on whether federal motor vehicle safety
standards preempt a product liability lawsuit against Mazda Motor
Corp. (7261.TO ) for installing lap-only seat belts in certain
rear-seating positions. The lawsuit stems from a fatal collision
involving a 1993 Mazda MPV minivan. A California court ruled for
Mazda, deciding that federal law preempted the lawsuit. The case is
Williamson v. Mazda Motor of America, 08-1314.
Finally, the high court asked the administration to weigh in on
a dispute involving an Oklahoma county government's decision to tax
natural gas that passes temporarily through a local pipeline
storage facility. The case is Missouri Gas Energy v. Schmidt,
08-1458.
The justices will reconsider the cases after the administration
submits legal briefs expressing the government's views.
-By Brent Kendall, Dow Jones Newswires; 202-862-9222;
brent.kendall@dowjones.com