DaimlerChrysler v. Cuno
- Case Date: 12/5/2005
- Project Name: Criminalization of Free Enterprise - Business Civil Liberties Program
On May 15, 2006, the U.S. Supreme Court overturned a federal appeals court decision that had struck down a state program of tax incentives for economic development. The decision was a victory for WLF, which filed a brief asking that the lower court decision be overturned. The Court held that the plaintiffs' status as taxpayers did not provide them with the "standing" necessary to maintain the suit. A group of Ohio taxpayers had challenged Ohio's decision to provide tax credits to DaimlerChrysler in return for its agreement to buld a new factory in Toledo. The appeals court held that the tax credit program was invalid under the "dormant" Commerce Clause of the Constitution because it unfairly discriminated against out-of-state companies. The Supreme Court did not reach the merits of the Commerce Clause issue. Rather, it held that the appeals court should never have considered the issue because the plaintiffs lacked standing to raise it.
More Information and Downloads:
12/5/2005: Download the Brief
Litigation Update: Supreme Court Vacates Ruling Striking Down Tax Credits for Investment