High Court Rules Against New York City in Internet-Tobacco Suit

The Wall Street Journal ^ | 01-25-10 | BRENT KENDALL

[GOP_Lady]

WASHINGTON—The Supreme Court ruled Monday that New York City couldn't use federal racketeering laws to sue out-of-state Internet tobacco retailers that don't file reports on city residents who buy cigarettes online.

The city wants the reports so it can collect cigarette taxes directly from residents who purchased tobacco products online. The retailers aren't required to collect the taxes.

The case before the high court centered on New York's allegations that New Mexico-based online retailer Hemi Group committed racketeering offenses of mail and wire fraud by allegedly failing to submit reports on its New York City customers to state tobacco administrators. The city, which said it lost millions of dollars in cigarette tax revenues, said federal law required Hemi to submit the reports.

But the Supreme Court, in a 5-3 opinion written by Chief Justice John Roberts, ruled that the relationship between Hemi's alleged actions and the city's inability to collect taxes was too indirect to establish racketeering liability against the online retailer.

Chief Justice Roberts said the direct cause of the alleged fraud against the city wasn't Hemi's conduct, but the refusal of residents to pay their taxes for online cigarette purchases. "The city, therefore, has no RICO claim," Chief Justice Roberts wrote.

Justice Stephen Breyer said in dissent that the city made a sufficient racketeering connection to Hemi's alleged conduct. Had Hemi filed the reports, the state would have been able to obtain a significant share of the taxes it was owed, Justice Breyer said.

Justice Sonia Sotomayor didn't participate in the case because she had participated previously as an appellate judge when the case was before the 2nd U.S. Circuit Court of Appeals.

The case is Hemi Group v. City of New York, 08-969.

[GOP_Lady]

PING!

[shadeaud]

I’m waiting for the Big Apple to switch its’ resourses from terrorism to bootleg cigarettes and regular soda.

[GOP_Lady]

And don’t forget SALT!

[Eric Blair 2084]

Big Brother, Nanny State, Grant Junkie, Bogus Study, Junk Science, Social Engineering, Egalitarian, Central Planning, Sheeple Control, Food Cop, Smoke Nazi, Socialism, Collectivism

This is an extremely low volume ping list. 6 per week max. To be added to or deleted from this ping list, please click one of the following:

Eric, you are a genius add me to your ping list or Eric, you are a jackass, take me off this ping list

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We the People Sheeple of the United States Nanny State, in Order to form a more perfect Union Socialist Utopia, establish Justice Socially engineer a country of non smoking, physically fit, seat belt and helmet wearing teetotalers, ensure domestic Tranquility Smoking bans in bars, limits on unhealthy food and social drinking, provide for the common defense Universal Healthcare, promote the general Welfare health of the population whether they like it or not, in order to save above mentioned Universal Healthcare entitlement program from bankruptcy, and secure the Blessings of Liberty Dependency to ourselves progressive liberals and our Posterity Hitler Youth who we brainwash through public school education, do ordain decree and establish this Constitution for the United States of America. Nanny State of Liberals.

[Eric Blair 2084]

If Native Americans thought that liberal white guilt would get in between their sovereign nation and Statists desire for citizens money....they are sadly mistaken.

They are in for the same treatment their ancestors got. Except in this case, the legal system worked.

[libertarian27]

This is Great News.

For anyone buying anything from internet sellers.

[GOP_Lady]

It sure is.

[GOP_Lady]

FREEDOM, PING!

[happinesswithoutpeace]

“Justice Sonia Sotomayor didn’t participate in the case because she had participated previously as an appellate judge”

http://www.law.com/jsp/article.jsp?id=1202424226748

[GOP_Lady]

Thank you very much, happinesswithoutpeace.

[jerri]

LOL, tax collectors can’t collect taxes.

[Eric Blair 2084]

Central planning by elitists has a way of backfiring.

See Prohibition, Liquor

[unixfox]

They should just change their name to SCREW YORK!

[Mears]

Good news comes on Tuesdays. Scott Brown and now this decision. What a great 8 days.

[sergeantdave]

“Central planning by elitists has a way of backfiring.

See Prohibition, Liquor”

Eric, you shoulda been around in 1877 when the feds sent Lt. Anderson and 18th US Infantry down to Pickins Co. in South Carolina to collect the federal whisky tax.

“Upon returning, we found the entire county abandoned by males,” wrote Anderson. “It is represented that Redmond has a company of 150 men - well armed - for offensive and defensive operations against the internal revenue officers. The bold leadership of Redmond has made him notorious and the terror of that section. The entire population sympathize with him.

“I am of the opinion that it would be decidedly dangerous for the civil officers to go into that section with the view of executing the revenue laws...”

[Eric Blair 2084]

Freedom is good. Statism can wait till Friday.

[Eric Blair 2084]

I’ve always thought that I was born 20 years too late. But 1877? That’s a little much my FRiend. :-)

[Alamo-Girl]

Thanks for the ping!

[gidget7]

Thanks for the ping Eric