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Justia Daily Opinion Summaries

Washington Supreme Court
August 7, 2020

Table of Contents

Ctr. for Envtl. Law & Policy v. Dep't of Ecology

Environmental Law, Government & Administrative Law

Peacehealth St. Joseph Med. Ctr. v. Dep't of Revenue

Health Law, Tax Law

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Economic Theory Shows that People Will Make Choices that Worsen the Pandemic

NEIL H. BUCHANAN

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UF Levin College of Law professor and economist Neil H. Buchanan points out some of the ways in which congressional Republicans misunderstand economics to justify withholding unemployment payments from Americans during the COVID-19 pandemic. Buchanan argues that economic theory soundly demonstrates that given the opportunity, people will make choices that worsen the toll of the pandemic.

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Washington Supreme Court Opinions

Ctr. for Envtl. Law & Policy v. Dep't of Ecology

Docket: 97684-8

Opinion Date: August 6, 2020

Judge: Barbara Madsen

Areas of Law: Environmental Law, Government & Administrative Law

The Spokane River originates at the outlet of Coeur d’Alene Lake in Idaho and flows west for approximately 111 miles to the Columbia River in eastern Washington. Flows in the river have been declining due to increased groundwater use from the aquifer. The Washington Department of Ecology (Ecology) ceased issuing new groundwater rights from the aquifer in the 1990s. Avista Corporation operated five hydroelectric projects located on the Spokane River in northern Idaho and eastern Washington. The uppermost project on the river, the Post Falls development, consisted of three dams on three channels with natural islands connecting the structures. The development impounded nine miles of the Spokane River to the outlet of Coeur d’Alene Lake. The issue this case presented for the Washington Supreme Court's review centered on Ecology's authority to set minimum instream flows for the rivers and streams in Washington, and the parameters of that authority under RCW 90.22.010 and RCW 90.54.020(3)(a). At issue was whether Ecology properly adopted a rule, WAC 173-557-050, setting a summertime minimum instream flow rate for the Spokane River at 850 cfs (cubic feet per second) from June 16 to September 30. The Supreme Court upheld that rule, determining that the Agency's challengers failed to carry their burden to show the rule’s invalidity. The Court reversed the Court of Appeals’ decision, which reversed the trial court’s dismissal of the challengers’ suit.

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Peacehealth St. Joseph Med. Ctr. v. Dep't of Revenue

Docket: 97557-4

Opinion Date: August 6, 2020

Judge: Susan Owens

Areas of Law: Health Law, Tax Law

Petitioners PeaceHealth St. Joseph Medical Center and PeaceHealth St. John Medical Center (PeaceHealth) argued that, under RCW 82.04.4311’s plain language, qualifying Washington hospitals were entitled to a business and occupation (B&O) tax refund and deduction on compensation they receive from any state’s Children’s Health Insurance Programs (CHIP) or Medicaid programs, not just Washington’s. Alternatively, PeaceHealth contended that by excluding compensation that qualifying Washington hospitals receive from other states’ CHIP and Medicaid programs, the Washington Department of Revenue (Department) unlawfully penalized those hospitals that served out-of-state patients, thus violating the dormant Commerce Clause of the United States Constitution. In holding that RCW 82.04.4311’s deduction excluded compensation that qualifying hospitals receive from other states’ CHIP and Medicaid programs, the Court of Appeals used the "series-qualifier" rule of statutory construction in lieu of the last antecedent rule. To this, the Washington Supreme Court held the Court of Appeals properly applied the series-qualifier rule to delimit the scope of RCW 82.04.4311’s deduction, thus affirming the Court of Appeals’ reasoning on this issue. Additionally, because the Supreme Court found that RCW 82.04.4311 supported a traditional government function without any differential treatment favoring local private entities over similar out-of-state interests, the Supreme Court held that RCW 82.04.4311 was constitutional under the government function exemption to the dormant Commerce Clause.

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