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May 21, 2008

Supreme Court: Finally a win for the States

This analysis is solely the work of the author. It has not been edited or endorsed by GLG.
Analysis By:
Martin Alpert
Claim Director, CAMBRIDGE INTEGRATED SERVICES GROUP INC
Implications: This ruling could be an early indication that we are not ready for automatic Federal preemption.Is this ruling based on sound legal precedent or the the sign of our times with a struggling market?

Analysis: It is not to often that all States come together to rally for a cause.  The majority is not always right , but with 42 states following the in state exemption, one wonders whether the court could have come to any other decision.  There are many who feel, however, that this ruling was fueled by the economy and the prospect of local projects being canceled and rising taxes.  Yet, one has to wonder whether legally the states really have the right for this preference.  Certainly the 7-2 decision implies they do, but the case the Court seems to rely on is anything but on all fours with this taxation issue.  States should have the right to make certain decisions that directly affect  the people that live within that state, but if that decision has dual implications then greater scrutiny should be involved.  Justices Kennedy & Alito dissented with a strong  message how this may dilute the Commerce Clause.  With the FDA and federal preemption looming, the Commerce Clause is still very much intact and not likely to get thrown out with the bath water. Possibly even more importantly, most states will continue to enjoy some local companies staying local.  


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