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Economic Liberty

Biggs v. Betlatch

Voters demand supermajority approval for tax increases

A bare majority of the Arizona state legislature passed a law requiring the director of the state Health Care Cost Containment System – which governs the state Medicaid program – to levy an “assessment” on hospitals to pay for Medicaid expansion. Legislators who opposed the law sued to invalidate it on the grounds that the bill crea ...

Rothe Development, Inc. v. Department of Defense

Large battle to end Small Business Act discrimination

Rothe Development, a small contracting business located in Texas, submitted the lowest bid on a Defense Department contract. But because the Small Business Act creates a preference for firms owned by socially or economically disadvantaged individuals, Rothe was not awarded the contract. Rothe sued the Defense Department and the Small Business Admin ...

Anderson v. Metropolitan Government of Nashville and Davidson County

Homeowners have a constitutional right to rent to travelers

Two Nashville ordinances banned any form of advertising short-term rentals with signage on the property, and capped the number of non-owner-occupied short-term rentals to three percent of the properties in each census tract. Rachel and P.J. Anderson periodically rent out their home via Airbnb and sued to strike down the law as violating their First ...

T.H. v. Novartis Pharmaceuticals Corporation

Causation, and not deep pockets, should dictate liability

In 2007, the expectant mother of twins used a generic form of an asthma medication for the off-label purpose of preventing pre-term labor. Novartis was the former manufacturer of the brand-name version of the medication until it sold its rights to the product in 2001. The twins were diagnosed with autism in 2012, allegedly tied to the medication. T ...

Janus v. American Federation of State, County & Municipal Employees, Council 31

Forced subsidization of unions violates First Amendment

The Illinois Public Labor Relations Act authorized public employee unions to collect “fair share” or “agency shop” fees from nonmember employees. Allowed under the 1977 Supreme Court decision in Abood v. Detroit Board of Education, the Illinois law allowed the AFSCME union to steal $535 per year from Mark Janus and every non ...

Niang v. Carroll

Cosmetology cartel seeks to squash competition by African-style hair braiders

Missouri law requires African-style hair braiders to be licensed as a cosmetologist or barber. To obtain such a license, an applicant must pass a background check, undergo thousands of hours of training (costing thousands of dollars to attend special schools), and pass an exam. Neither the cosmetology nor barbering curricula teach African-style hai ...

Women’s Surgical Center, LLC v. Reese

Georgia Constitution disallows economic protectionism

Women’s Surgical Center specializes in conducting outpatient procedures for traditionally inpatient surgeries, which benefits patients by providing less expensive and less invasive operations. Women’s Surgical wants to expand its practice, building more operating rooms and contracting with more doctors. However, Georgia’s Certific ...

Kunath v. City of Seattle

Seattle imposes arbitrary and unconstitutional tax on achievement

The Washington State Constitution prohibits the government from levying an income tax on targeted segments of the population; any income tax must be uniformly applied to all citizens. Nonetheless, Seattle enacted an income tax targeting those making in excess of $250,000 per year with a 2.25% tax rate, setting a 0% rate for everyone else. Promoted ...

Oil States Energy Services v. Greene’s Energy Group

Adverse decision in case supporting defendants’ right to a jury trial

In 2011, the federal America Invents Act authorized the formation of the Patent Trial and Appeal Board (PTAB), a panel of three Administrative Law Judges who review the validity of patent claims. But defendants who are accused of patent infringement are increasingly asking the PTAB to use these reviews to invalidate the patent at issue, which in tu ...