Washington State Dept. of Licensing v. Cougar Den, Inc.

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Washington State Dept. of Licensing v. Cougar Den, Inc.
Court U.S. Supreme Court
Citation 586 U.S. ___
139 S. Ct. 1000
203 L. Ed. 2d 301
Date decided March 19, 2019
Appealed from Washington State Supreme Court
Case Opinions
plurality written by Breyer
joined by Sotomayor, Kagan
concurrence written by Gorsuch
joined by Ginsburg
dissent written by Roberts
joined by Thomas, Alito, Kavanaugh
dissent written by Kavanaugh
joined by Thomas

Facts

The Yakama Nation is an American Indian tribe in Washington, located on the Yakama Indian Reservation, on the east side of the Cascade Mountains. In 1855, the tribe signed the Yakama Nation Treaty of 1855, ceding approximately 10,000,000 acres to the United States, but reserving important rights for the tribe and its members. In the treaty, the tribe reserved β€œthe right, in common with citizens of the United States, to travel upon all public highways.”

Cougar Den, Inc., was a corporation owned by the Yakama Nation, and which imported gasoline onto the reservation for sale to tribal members. The laws of the State of Washington imposed a tax on fuel imported into the state by truck, which the tribe refused to pay. Washington, in 2013, assessed taxes and penalties of $3.6 million dollars against the tribe. Cougar Den appealed the assessment.

Procedural History

The matter was first heard by an administrative law judge, who ruled in favor of the tribe, and that the tax was preempted by the treaty. The State asked for review, and the Director of the State Department of Licensing reversed, holding that the tribe owed the Department the assessment. Cougar Den then petitioned in the Yakima County Superior Court, which was sitting in an appellate capacity. The Superior Court reversed the Director's decision, holding that the tax was preempted by treaty. The Department appealed and the Washington Supreme Court granted direct review. In a 7-2 decision, the Washington Supreme Court affirmed the lower decision, holding that the treaty preempted the state tax. The Department then petitioned the United States Supreme Court, and the Court granted certiorari.

Issues

Did the treaty preempted the state tax law?

Holding

Yes. Since the tax placed a burden on the right of the tribe to travel on the highway with goods, the state law was preempted by the treaty.

Judgment

Lower decision was affirmed.