Legal Document

501 U.S. 529 111 S.Ct. 2439 115 L.Ed.2d 481 JAMES B. BEAM DISTILLING COMPANY, Petitionerv.GEORGIA et al. No. 89-680. Argued Oct. 30, 1990. Decided June 20, 1991. Syllabus Before 1985, Georgia law imposed an excise tax on imported liquor at a rate double that manufactured from Georgia-grown products. In 1984, this Court, in Bacchus Imports, Ltd. v. Dias, 468 263, 104 3049, 82 200, held similar Hawaii violated the Commerce Clause. Petitioner, manufacturer of Kentucky Bourbon, thereafter filed action state court, seeking refund taxes it paid under Georgia's for 1982, 1983, and 1984. The court declared statute unconstitutional, but refused to apply its ruling retroactively, relying Chevron Oil Co. Huson, 404 97, 92 349, 30 296, which decision will be applied prospectively where displaces principle reliance may reasonably have been placed, prospectivity is balance warranted by effect operation new rule inequities might otherwise result retroactive application. State Supreme Court affirmed. Held: judgment reversed, case remanded. 259 Ga. 363, 382 S.E.2d 95 (Ga.1989), reversed 1 Justice SOUTER, joined STEVENS, concluded once has litigants one case, must do so with respect all others not barred procedural requirements or res judicata. Pp. 534-544. 2 (a) Whether should retroactively first instance matter choice law, question there are three possible answers. normal practice make fully retroactive. Second, purely prospective method overruling, particular decided old announces new, effective conduct occurring after date decision. Finally, could pronounced, then return arising facts predating pronouncement. possibility such modified, selective, was abandoned criminal context Griffith Kentucky, 479 314, 328, 107 708, 716, 93 649. 534-538. 3 (b) Because did reserve question, remanded consideration remedial issues, properly understood followed applying before Court. 538-540. 4 (c) thus own rule, principles equality stare decisis require case. Griffith's principle, similarly situated treated same, applies equally well civil as criminal. Of course, retroactivity limited need finality, since those whose claims adjudicated only purchased expense end litigation. contrast, parties, petitioner, who wait litigate until labored create merely asserting right theirs being basis only, requirements. Modified rejected, some when others. This necessarily limits application test, distinguish between choice-of-law purposes equities their prospectivity. It nature precedent substantive shift spring basis. 540-544. 5 (d) opinion does speculate bounds propriety pure Nor determine appropriate remedy issues were neither considered below nor argued P. 544. 6 WHITE that, any several suppositions, read extend benefits Imports petitioner here also benefit Bacchus. If thought would no doubt litigants. proper factors set forth 296. And, even if wrong cases parties Moreover, 649, overruled decisis. However, settled Court's prior cases, see, e.g., Cipriano City Houma, 395 701, 706, 89 1897, 1900, 23 647, recognize announced To allow speculation suggest come time precedents issue overturned. 2448-2449. 7 BLACKMUN, MARSHALL SCALIA, prospectivity, whether "selective" "pure," breaches obligation discharge constitutional function articulating rules decision, comport duty decide controversies. judicial review constrains each announced. 547-548. 8 while agreeing SOUTER's conclusion, disagreed both selective impermissible, reasons equity, because they permitted Constitution. Judiciary powers greater than conferred Constitution, fundamental Constitution enacted, upset division federal central scheme. 548-549. 9 J., delivered opinion, joined. WHITE, concurring judgment. judgment, JJ., O'CONNOR, dissenting REHNQUIST, C.J., KENNEDY, 10 Morton Siegel, Chicago, Ill., petitioner. 11 Amelia W. Baker, Atlanta, Ga., respondents. 12 SOUTER STEVENS joins. 13 presented our 200 (1984), antedating We hold requires later cases. 14 * Prior amendment alcohol distilled spirits See Ga.Code Ann. § 3-4-60 (1982). distinguished local alcoholic products violate Bacchus, supra, 273, S.Ct., 3056. proved bar finding unconstitutionality discriminatory involved intoxicating liquors, States heightened regulatory Twenty-first Amendment. Id., 276, 3057. 15 Bacchus' wake, Delaware corporation bourbon manufacturer, claimed likewise inconsistent Clause, sought $2.4 million, representing differential taxation full amount had years Department Revenue failed respond request, Beam brought against Superior Fulton County. On cross-motions summary trial agreed withstand attack therefore unconstitutional. Using analysis described 296 (1971), nonetheless retroactively. denied petitioner's request. 16 affirmed respects. pre-1985 version Clause as, words, act "simple economic protectionism." 364, 95, 96 (1989) (citing Bacchus). But it, too, sense declined declare State's unconstitutional question. established overruling past precedent, see Scott State, 187 702, 65 (1939) (upholding predecessor objection), upon justifiably relied. 365, S.E.2d, 96. That reliance, together "unjust results" follow application, satisfy test argument two justices found ab initio, observed " 'declared statutes void inception contrary enactment, . decisions applicable present controversy, original statute, adopted, violative interpretations period.' 366, 97 (quoting Adams Adams, 249 477, 478-479, 291 518, 520 (1982)). 17 writ certiorari question.1 granted petition, 496 ----, 110 2616, 637 (1990), now reverse. II 18 ordinary arises. Courts general business disputes bar. Mishkin, Foreword: High Great Writ, Due Process Time Law, 79 Harv.L.Rev. 56, 60 (1965). Where antedate events dispute turns, legal already decided, litigant claim exemption rules. 19 changes assertion nonretroactivity entertained, paradigm expressly overrules contest differently previously regulated conduct. Since one, seen "a forward relation backward." Northern R. Sunburst & Refining Co., 287 358, 53 145, 148, 77 L.Ed. 360 (1932). Once "backward," further remedies, i.e., party prevailing obtain same relief awarded one. Subject thresholds, McKesson Corp. Florida Alcoholic Beverages Tobacco Div., 2238, inquiry governed least originates court. American Trucking Assns., Inc. Smith, 2323, 148 (1990) (STEVENS, dissenting). antecedent itself derives otherwise. ---- (plurality opinion); cf. United Estate Donnelly, 397 286, 297, n., 90 1033, 1039, 25 312 (1970) (Harlan, concurring). 20 As mechanics, ways problem resolved. First, made retroactive, whom pressed, consistent judicata barriers limitations. overwhelmingly norm, Kuhn Fairmont Coal 215 372, 140, 54 228 (Holmes, dissenting), keeping traditional courts them based best current understanding law. Mackey States, 401 667, 679, 91 1160, 1173, 28 (1971) judgments part part). reflects declaratory theory (SCALIA, judgment); Linkletter Walker, 381 618, 622-623, 85 1731, 1733-1734, 601 (1965), according find it. circumstances prompt difficulties practical sort. However much comports received notions role, attacked failure take account subsequently abandoned, fact life always jurisprudential recognition. See, Mosser Darrow, 341 267, 71 680, 684, 927 (1951) (Black, 21 law-making becomes vehicle announcing has, albeit infrequently, resorted (1971); Pipeline Construction Marathon Pipe Line 458 50, 88, 102 2858, 2880, 73 598 (1982); Buckley Valeo, 424 1, 142-143, 612, 693, 46 659 (1976); England Louisiana Bd. Medical Examiners, 375 411, 422, 84 461, 468, 440 (1964); n. 11, 2354, dissenting); Linkletter, U.S., 628, 1737, although doing never required aspect approach justification appreciation "[t]he cannot erased declaration," Chicot County Drainage District Baxter Bank, 308 371, 374, 317, 318, 329 (1940), Lemon Kurtzman, 411 192, 199, 1463, 1468, 36 151 (1973) opinion), relied offend basic justice fairness. equitable drawback: tends relax force minimizing costs thereby allows freedom comparable legislatures. Johnson, 457 537, 554-555, 2579, 2589-2590, 202 James 366 213, 225, 81 1052, 1058, 246 (1961) 22 method, we call enjoyed temporary ascendancy during period formulated rules, prophylactic otherwise, insure protection rights accused. Johnson New Jersey, 384 719, 86 1772, 882 (1966); Stovall Denno, 388 293, 87 1967, 1970, 1199 (1967); Daniel Louisiana, 420 31, 704, 42 790 (1975); ("During doctrine evolved, most procedure expanded protections available defendants"). hand, holdings Miranda Arizona, 436, 1602, 694 Escobedo Illinois, 378 478, 1758, 977 Katz 389 347, 88 507, 576 (1967), "seriously disrupt[ed] administration laws[,] requir[ing] retrial release numerous prisoners guilty trustworthy evidence conformity standards." 731, 1780. other hardly law-changing itself. A defendant usually seeks thing appeal, reversal his conviction; future provide little way solace. context, without successful litigant, incentive seek diluted lost altogether. situations component generally. Wasserstrom, Judicial Decision 69-72 (1961). "We depart tradition simply pick choose among defendants alone receive 'new' law." Desist 394 244, 258-259, 1030, 248 (1969) Von Moschzisker, Stare Decisis Last Resort, 37 409, 425 (1924). For reason, 649 (1987), constituted "clear break" previous favor completely pending direct review. Though dispose retroactivity, id., 322, 8, 712, appears endorsed context. opinion). presents issue. III 24 Both assumed applicability accepted (whether sense, clear) Oil, 106-107, 355. employed modified posed scope disposition goes saying. Although taxpaying appellants prevailed merits claim, however, grant outright request Instead, arguments "not entitled refunds bear incidence passed separate addition price customers legally obligated pay." 276-277, 3058. "These essentially remedy," adequately developed record below, intertwined with, obviated by, matters 277, 26 Questions aside, fairly holding compare Scheiner, 483 266, 297-298, 2829, 2847-2848, 226 (1987) (remanding consider "should issues"), matter, pass-through defense; reserved issue, terms remand "remedial" incomplete. Indeed, implies precedential McKesson, (pass-through defense question). solely defense, having decided.2 Williams Vermont, 472 14, 28, 105 2465, 2474, (1985); Exxon Eagerton, 462 176, 196-197, 103 2296, 2308-2309, 76 497 (1983); Davis Michigan Dept. Treasury, 489 803, 817, 109 1500, 1508, 891 (1989). 27 just ado, yet course Thus, error refuse done so. is, over analysis. confined Its carries 1039 strength latter sphere. With remains disparate treatment directly collateral proceedings. Griffith, 331-332, 717-718 (WHITE, Whereas review, relate back convictions challenged habeas corpus. Teague Lane, 288, 1060, 334 No difficulty exists arena, opportunity final judgments. 29 necessary maintain incentives absolute retroactivity. "even deprived relief." ----. Had petitioners bid example, won imposition taxes, here. Assuming all, moreover, small number cases; unlikely deter broad class challengers precedent. generally Currier, Change Judge-Made Law: Prospective Overruling, 51 Va.L.Rev. 201, (1940); suit limitation repose, reopen door closed. true deem distinction arbitrary, habeas: why someone become enjoy next day's victory spring? objected unlike more potential freeload labor into being. (Criminal virtue offense, invoke beneficiaries change alone, use weapon.) us, challenge fellow distributors battle not, therefore, provoke Harlan's "[s]imply fishing stream appellate using pronouncing standards, permitting flow unaffected rule." Mackey, 1173 part); - enter waters give benefit. Insofar drives toiled failed, precluded judicata; exploit others' efforts litigating rule's wake. 31 former, independent interests stake; latter, too readily unnecessarily overcome. While equality, second chance another principle. 'Public policy dictates litigation; contested shall bound contest, tried forever parties.' Federated Stores Moitie, 452 394, 401, 101 2424, 2429, 69 (1981) Baldwin Iowa Traveling Men's Assn., 283 522, 525, 517, 75 1244 (1931)). Finality delimit temporal accept uniformity loses time. putative hangers-on, told deemed They characterized freeloaders vindication announcement. Those rely labors litigant. might, limit fight battles certain. possibility, enough say distinguishing serve encourage filing replicative suits created taking 32 Nor, finally, prospectivity: actually how suffer new. system aspires fairness extent, applications analysis, however irrelevant rejection precludes others, Simpson Director, Office Workers' Compensation Programs, Labor, 681 F.2d 81, 85-86 (CA1 1982), cert. sub nom. Bath Iron Works 459 1127, 762, 74 Note, 1985 U.Ill.L.Rev. 117, 131-132. chosen assertedly switched off individual hardship; allowing relitigation compound stabilizing purpose very development "new" generalized enquiry permits assert, consider, absent situated. Conversely, nothing deciding IV 33 grounds today narrow. entirely law: 34 about case; save effort buttress reference last Term McKesson. repeatedly, "issues Nothing deprives respondent raise bars recovery demonstrate determining provided, deal. concurring); Lemon, 203, 1471. 35 ordered. 38 I agree extending appellant Imports. suppositions. foreseeable hence implicated. depended factors, proper. Here, noted dissenters Bacchus—including O'CONNOR—agreed erred Amendment argue giving 278, 3059 Third, if—as O'CONNOR argues—the quite so, post, 553-559, water dam, irretrievably seems me. There situated,* (a dissented still believe wrong, ), did. Hence concur 39 above, meant retreat opinions wrote recognizing 647 (1969). what Stewart summarizing essence 105-109, 355-357. plurality (1990). certain can anyone sensibly insist automatic system. 40 Hence, understand cite operation, ante, 536-537, he Constitutional statutory decisions. nevertheless "speculate" 41 Plainly enough, Justices MARSHALL, BLACKMUN precedents. SCALIA reasons, him. Post, though naive (nor think Framers enough) unaware judges real "make" suggests (in unreal suppose) concede discover suggesting citizens them. fearful ability resist temptation overrule maximize injury public interest occurs, tend departing am unpersuaded line reasoning narrower ground SOUTER. 43 join, 44 join SCALIA's newly violates norms adjudication. me makes clear "cases" "controversies." Const., Art. III, 2, cl. 1. Unlike legislature, promulgate "be only," dissent, 550, perhaps us and, announce decide. warp role we, judges, play government powers. 45 comments reject idea expressed Harlan treating same. 678-679, 1172-1173, 1038-1039, (dissenting equity dissent trump adjudication 550-551. integrity justify determined fulfill responsibility requiring announce. Application decisional thwart decisis, suggests. 552. profoundly serves important Nearly half century ago, Roberts cautioned: "Respect tribunals fall said controversy." Mahnich Southern S.S. 321 96, 113, 64 455, 463, 561 (1944) dissent's view rob vitality through eliminating tension controversy rule. By selectively, dodge bullet avoiding disruption expectations prevents disturbing forces cause, combines prevent altering 47 Like conclude function. 48 49 agree, abstract reasoning, leads conclusion. calls "selective prospectivity" impermissible produces inequitable results coercion confessions reason. like other, allowed Deciding pose 50 scheme succeed objective, preserved enacted. Executive, "tak[ing] Care Laws faithfully executed," II, 3, power bind private areas specifically committed control statute; perception Executive power" familiar systems, alien own. So also, think, Power States" inferior Congress establish, common-law tradition. "to is," Marbury Madison, Cranch 137, 177, (1803), forebears were) "finding" discerning rather decreeing changed to, tomorrow be. mode poses "difficulties sort," 536, checks making; eliminate render substantially free "make law," alter assigned Branches. "pure beyond power. 52 Chief REHNQUIST KENNEDY dissenting. extends (1971). bases determination "principles decisis." Ante, my mind, these lead precisely opposite result. abrogate explained ignores well-settled repeatedly Assns. 2327-2343, (opinion J.). repeat discussion reiterate, "the 'to is,' (1803)," 549 concurring), decides, subsequent describes long-established making inquiry. 55 silent Given usual reasonable reading silence customary practice. 56 employ have. only. concludes absence examination everyone. disagree. Without 57 "equality," believes unfair withhold 537-538, 540. concerned fairness, ignore Oil; 107-108, 355-356; now, fair. indicates appropriate, true. itself, hinders cause repeating mistake. decline invitation impose liability every jurisdiction Nation pre-Bacchus 58 explains "stare decisis" compels this, assume means defer tells case—where squarely out. 59 Contrary assertions, cuts At core, affected order affairs fear suddenly pulled out respects built up around Trucking, 2341 J.) ("prospective impelled light understanding"); 2345 judgment) (imposition "upset litigant's earlier turn exists"). reveals, does, unjustly undermine expectations, strongly holding. purports restricted extent. 543. far greater. ignored answering narrow broader parties. needed; reach expectations. summarized represents longstanding -----, well-established seriously curtails His reaching conclusion ironic. 61 Faithful decisions, Subsequently, gone demonstrates, 62 three-part only: 63 "First, nonretroactively establish either relied, impression resolution clearly foreshadowed. weigh demerits looking history effect, retrospective retard operation. [must] weig[h] inequity [w]here produce substantial ample injustice hardship nonretroactivity." 355 (citations internal quotations omitted). easily meets criterion. sales exempted locally produced liquor. tax, discriminating products, I, interfering interstate commerce. rejected violation was, sales, overborne plenary section provides: "The transportation importation Territory, possession delivery therein laws thereof, hereby prohibited." 66 language indicated indeed compete domestic. 274, 13, 3057, 13. Nonetheless, "that [Twenty-first] remove regulation beverages ambit Clause." 275, Relying Hostetter Idlewild Bon Voyage Liquor Corp., 377 324, 1293, 350 (1964), California Retail Dealers Assn. Midcal Aluminum, Inc., 445 100 937, 233 (1980), Capital Cities Cable, Crisp, 467 691, 2694, 580 protect protectionism. 275-276, 3057-3058. 67 unprecedented. Beginning Board Equalization Young's Market 299 59, 77, (1936), uninterrupted authority meet strictures so-called "dormant" "negative" regulating within State. point. There, eventually license fee privilege importing beer "[p]rior obviously privilege" burdens 62, 78. Section that. answered appellees' negative restrictions. contrast stark: 68 "[Appellees] construe saying, effect: prohibit liquors provided prohibits manufacture sale borders; sale, let domestic equal terms. involve construction Amendment, rewriting plaintiffs despite regulate importations except protecting health, safety morals; importer's end. Surely adopt lesser degree total prohibition. Can doubted monopoly beer, competing importations, discourage laying heavy impost, channelize desired confining single consignee?" 62-63, 78-79. 70 Numerous following States' commerce unconstrained Ziffrin, Reeves, 132, 138, 163, 166, 128 (1939); Frankfort Distilleries, 324 299, 661, 664, 951 (1945); Seagram Sons, Hostetter, 35, 42, 1254, 1259, 336 Heublein, South Carolina Tax Comm'n, 409 283-284, 483, 488-489, (1972); 281-282, 3060-3061 cited support notice whatsoever impending change. Idlewild, Midcal, Cities, conflicted legislation pursuant override congressional legislation. These Supremacy "repealed" 1297-1298; 108-109, 944-945; 712-713, 2707. 72 Congress' legislate (positive) themselves. acknowledged explicitly trumps 330, 1296 (" 'Since clause. .' "), quoting Indianapolis Brewing Control 305 391, 254, 255, 83 243 2707 'This confirmed primarily exception Clause.' reserves invalid Clause"), Craig Boren, 429 190, 206, 451, (1976). short, places restrictions came blue. regard 278-287, 3059-3064 dissenting) (explaining was). underlies served are, prevented enacting schemes. Petitioner argues unless company contends fails. justified believing hindsight acting again, unconstitutionality. Precisely unprecedented, heavily "Where foresee invalidation statutes, merit concern. expected overturn precedents, unsettling actions taken apparent." 2333 upholding Georgia, 705, 65, (1939), Brewing. balance. legitimate expectation manufacturers pay constitutional. accordingly. companies receiving reason anticipate. limitations unsuspecting collected unconstitutionally 1982 owes million refund. App. 8. identical courts. almost $28 million. Civ.Action 87-3542-6 (DeKalb Super.Ct., Apr. 24, 1987); Joseph E. 87-7070-8 Sept. 4, 1987). Brief Respondents 26, estimates taxed $30 30. extraordinary liability, struggling fund services, height unfairness. reaped windfall taxpayers. good faith tax. subjects potentially devastating fair warning. burden corrupt government, ultimately blameless unexpecting form higher reduced benefits. jurisprudence result; 78 mistake made. compounds imposing widespread expect name "equality" refusing perverts meaning respectfully dissent. expends effort, 5-8, amended, 256 578, 351 190 relevant is. fact, criteria Appellee O.T.1983, 82-1565, p. 19. went consumers. 46. unnecessary here, litigated implication defense. Clemons Mississippi, 494 1441, 1448, 108 725 (1969); Allen Elections, 393 544, 572, 835, Union 24-25, 1051, 1058-1059, 98 Dist. (1940).

Classification Label: 9