Texas Two-Step: Siesta Village Market Back for a Second Look

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It looks like the Texas retailer case of Siesta Village Market is headed back to court for a second look.  The plaintiff’s announced they are petitioning for a rehearing of the panel’s decision a few weeks back to refuse to rehear the case en banc before of the entire 5th Circuit Court of Appeals.  The plaintiffs understand it is necessary to exhaust their options before the full Court of Appeals before proceeding to the Supreme Court, should it come to that.  The plaintiffs cited the following in their petition:

“The panel opinion errs in two areas of exceptional importance.  First, the panel opinion contradicts substantive holdings of the Fifth Circuit and the Supreme Court by permitting the State of Texas to discriminate between in-state and out-of-state participants in interstate commerce.  Second, the panel opinion applies an analytical method contrary to the method mandated by both Fifth Circuit and Supreme Court precedent in Commerce Clause cases such as this one.”

This case is tremendously important to opening up Texas to DTC for retailers and imported brands as well as setting precedents for retailer direct in other states.  It is unclear at this point when the petition will be decided and I’ll continue to track.  My guess is, regardless of who wins, if the case is decided by the full 5th Circuit the losing side will appeal.  This one looks to be going the distance.

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