DISCLAIMER: The following unofficial case summaries are prepared by the clerk's office
as a courtesy to the reader. They are not part of the opinion of the court.
181115P.pdf 08/02/2019 Association of Equipment Mfr. v. The Hon. Doug Burgum
U.S. Court of Appeals Case No: 18-1115
U.S. District Court for the District of North Dakota - Bismarck
[PUBLISHED] [Colloton, Author, with Shepherd and Stras, Circuit Judges]
Civil Case - preliminary injunction. District court's grant of preliminary
injunction of enforcement of North Dakota statute regulating relationships
between manufacturers and farm equipment dealers, North Dakota Senate Bill
2289, sought by manufacturers, claiming likelihood of success on a claim
of violations under the Contract Clause of the U.S. Constitution, is
affirmed. The manufacturers could not reasonably foresee any impending
intervention into their agreements, as the regulations go beyond
regulation of coercive and discriminatory practices; they enlarge dealer
reimbursements; and they impair obligations of contract. The State failed
to show the legislation furthered a significant and legitimate public
purpose and failed to demonstrate the requisite guarantee that it provides
more than benefit to special interests. A state is required to demonstrate
more than a conceivable or incidental public purpose for impairing the
obligation of contracts. Judge Shepherd dissents.