Deere & Co. v. New Hampshire

In consolidated appeals, petitioners Deere & Company, CNH America LLC (CNH), AGCO Corporation (AGCO), Kubota Tractor Corporation (Kubota), and Husqvarna Professional Products, Inc. (Husqvarna), all appealed superior court orders that granted summary judgment to the State on their constitutional challenges to Senate Bill (SB) 126. SB 126 was enacted in 2013, amending RSA chapter 357-C to define "motor vehicle" as including "equipment," which "means farm and utility tractors, forestry equipment, industrial equipment, construction equipment, farm implements, farm machinery, yard and garden equipment, attachments, accessories, and repair parts." Like its federal counterpart and similar state statutes, RSA chapter 357-C, "the so-called ‘dealer bill of rights,''" was enacted "to protect retail car dealers from perceived abusive and oppressive acts by the manufacturers." RSA chapter 357-C regulated, among other things, a manufacturer's delivery and warranty obligations and termination of dealership agreements. RSA chapter 357-C also defines unfair methods of competition and deceptive practices. Violation of any provision of RSA chapter 357-C constitutes a misdemeanor. Petitioners manufactured agricultural, construction, forestry, industrial, lawn, and garden equipment, including commercial mowers, wheel loaders, backhoes, and agricultural tractors. Their complaint alleged that: (1) retroactive application of SB 126 substantially impaired their existing dealership agreements in violation of the State and Federal Contract Clauses; and (2) SB 126 violated the Supremacy Clause of the Federal Constitution because it voided or otherwise rendered unenforceable mandatory binding arbitration clauses in existing dealership agreements, thereby conflicting with the Federal Arbitration Act (FAA). In sum, the New Hampshire Supreme Court upheld SB 126 against petitioners' claims that it violated the State and Federal Contract Clauses. The Court agreed with the trial court that the preempted provisions were severable from the remaining provisions of RSA chapter 357-C as applied to petitioners. The Court rejected Husqvarna's argument that SB 126 violated the Equal Protection Clause of the Federal Constitution. The Court also rejected Husqvarna's contention that SB 126 had either a discriminatory purpose or effect within the meaning of the dormant Commerce Clause. Nonetheless, the Court vacated the trial court's grant of summary judgment to the State on Husqvarna's dormant Commerce Clause claim and remanded for the trial court to consider, in the first instance, whether SB 126 was unconstitutional under the "Pike" balancing test. View "Deere & Co. v. New Hampshire" on Justia Law