King Mountain Tobacco Co. v. Robert McKenna

King Mountain Tobacco Company and the Confederated Tribes and Bands of the Yakama Indian Nation (collectively “Appellants”) sued the Attorney General of the State of Washington for declaratory and injunctive relief from Washington’s escrow statute, Wash. Rev.Code §§ 70.157.005-70.157.030 (2013). The escrow statute requires King Mountain to place money into escrow to reimburse the State for health care costs related to the use of tobacco products. The amount placed in escrow is based on the number of cigarette sales made that are subject to state cigarette taxes. Appellants argue that the Yakama Treaty of 1855 is an “express federal law” that exempts the Yakama people from Washington’s escrow statute. The State argues that the Treaty does not preclude it from regulating tobacco products sold nationally and that, as a nondiscriminatory state law that is not expressly preempted by federal law, the escrow statute applies to King Mountain. The district court granted summary judgment in favor of the State, and Appellants appeal. We have jurisdiction under 28 U.S.C. § 1291 , and we affirm the judgment of the district court.

BACKGROUND

The Treaty between the Confederated Tribes…