Philip Morris USA v. Vilsack

Philip Morris challenged the Department of Agriculture's decision to use tax rates from 2003 instead of current tax rates. In this decision, the court concluded that the decision was a permissible interpretation of the statute. Nothing from the text of the statute or in Congress's actions indicated that the Department intended otherwise, or that the Department's interpretation was unreasonable. The court affirmed the district court's grant of the Department's motion for summary judgment. 

Philip Morris USA, Inc. v. Vilsack, No. 12-2498 (4th Cir. 2013)

  • United States
  • Nov 20, 2013
  • United States Court of Appeals for the Fourth Circuit

Parties

Plaintiff Philip Morris USA Inc.

Defendant

  • Thomas J. Vilsack, Secretary of Agriculture
  • United States Department of Agriculture

Third Party

  • Cigar Association of America, Inc.

Legislation Cited

Related Documents

Type of Litigation

Tobacco Control Topics

Substantive Issues

Type of Tobacco Product

None

"We therefore conclude that USDA's decision to make use of only 2003 tax rates in computing the inter-class assessment allocation under 7 U.S.C. 518d(c)(2) is a permissible interpretation of FETRA. There is no clear indication in the text of the statute, or in Congress's prior or subsequent action, that Congress intended for USDA to take a different course. There is similarly no basis for concluding that USDA filled that gap with an unreasonable interpretation. The district court's decision granting USDA's motion for summary judgment is AFFIRMED."