Monday, May 18, 2009

Nestle's Files Suit

As we speculated earlier, Nestle's has pulled the trigger and has filed a lawsuit to stop the implementation of the expanded bottle bill. We're not sure of the details, but this could shelve the entire measure until the courts sort through the constitutional issues involved. As we said earlier: "The demand that all deposit containers have a "NY" only label and UPC code is the heart of the threatened lawsuit.The complaint, drafted by Kilpatrick Stockton, LLP, states flat ot that the requirement for this type of labeling is a direct violation of the constitution's Commerce Clause: "The most obvious constitutional defect with the amended Bottle Bill is its flatly unconstitutional regulation of commerce occurring in other states. It is well settled that the "dormant" Commerce Clause "precludes the application of a state statute to commerce that takes place wholly outside the State's borders, whether or not the commerce has effects within the State." Healy v. Beer Institute, 491 U.S. 324, 336 (1989)."

So now we wait and see what happens-wondering whether this stimulates quicker legislative action, or slows it down as lawmakers await the decision of the courts. It is one giant clustershtup, though.