Association Asks Supreme Court to Review N.H. Law

In April, our Association, with the endorsement of the Board of Directors, accepted an invitation from the National Association of Manufacturers to join an amicus brief filed with the U.S. Supreme Court.

The brief supports a petition filed by Deere and other manufacturers asking the high court to review (and ultimately overturn) a decision by the New Hampshire Supreme Court that allows the state’s legislature to retroactively extend the reach of the state’s automobile-dealer law to the equipment industry, thereby upending settled contractual rights and obligations.

In the amicus brief, we argue that retroactive application of New Hampshire’s revised “Dealer Bill of Rights” would violate the contract clause of the U.S Constitution, which permits individuals to establish in advance what costs they will incur in a given business venture. That purpose would be completely frustrated if special interests were allowed to pressure state legislatures to impose burdens and costs that manufacturers did not assume when bargaining for their contracts.

In joining the brief, our Association simply establishes itself as a party affected by the law. We are not a party to the case.

Background:

In February 2013, SB 126 became the first bill of the legislative session to earn our outright opposition. The bill called for consolidating laws for auto industry dealers with several types of equipment dealers, including farm equipment. It labeled almost everything our members manufacture as a “motor vehicle,” ignoring that most of the equipment does not even have a motor and cannot be used for road transportation.

In spite of opposition from our Association and others, on June 25, 2013, New Hampshire Governor Maggie Hassan signed SB 126 into law.

Shortline equipment manufacturers and dealers have successfully negotiated mutually beneficial contracts without the intervention of state legislatures. It is unfair for these contractual relationships to be unilaterally modified by states under the guise of consumer protection.

If you would like a copy of the brief and our attorney’s summary, contact Vernon Schmidt in the Association office at Vernon@FarmEquip.org. S