Federal Judiciary

Tobacco rehearing denied

By Lyle Denniston

In the last round of orders issuing during the Supreme Court?s summer recess, the Justices on Friday refused to give British American Tobacco Co. another chance to challenge the scope of the RICO anti-racketeering law.  Without comment (and with Justice Elena Kagan not taking part), the Court denied a reheating petition to BATCo, thus leaving undisturbed its June 28 order refusing to hear the company?s legal claims.  (The case is British American Tobacco v. U.S., 09-980).

In its rehearing petition, BATCo had argued that the D.C. Circuit Court?s ruling applying RICO to conduct of the company that occurred largely abroad had been undercut by the Supreme Court?s ruling June 24 in Morrison v. National Australia Bank (08-1191).  The Morrison decision barred overseas application of U.S. securities law. BATCo argued that the same rationale should free it from RICO liability.

It does not appear that the Court considered asking for a response to the rehearing petition. Without such a request, there was no chance for rehearing to be granted.

Full post as published by SCOTUSBLOG on September 03, 2010 (boomark / email).