Viva! International Voice for Animals v. Adidas Promotional Retail Operations, Inc.Viva! International Voice for Animals v. Adidas Promotional Retail Operations, Inc.
Opinion
State law prohibits the importation into or sale within California of products made from kangaroo. (
Factual and Procedural Background
The material facts are undisputed. Defendants adidas Promotional Retail Operations, Inc., Sport Chalet, and Offside Soccer (collectively Adidas) are California
Plaintiff Viva! International Voice for Animals is an international nonprofit organization devoted to protecting animals. Plaintiff Jerold Friedman is a resident of Los Angeles County. Plaintiffs (collectively Viva) sued Adidas for engaging in an unlawful business practice by importing and selling athletic shoes made from kangaroo leather. (
Both sides sought summary judgment; the trial court denied Viva’s motion and granted Adidas’s motion. It agreed with Adidas that Penal Code
The Court of Appeal affirmed. While acknowledging the preеmption question was close, it agreed with the trial court that the “statute as applied to defendants in this case conflicts with federal law and with substantial federal objectives of persuading Australian federal and state governments to impose kangaroo population management programs, in exchange for allowing the importation of kangaroo products.”
We granted review to resolve this important preemption question.
Discussion
We begin by noting what we are not called upon to decide. The Commonwealth of Australia is free to manage its indigenous wildlife populations in any manner it sees fit, subject to international treaty obligations. Likewise, California is free to regulate within its own borders unless federal law or the United States Constitution requires otherwise. It is not our role to judge the wisdom of Australia’s wildlife management practices, which Adidas and amicus curiae the Government of the Commonwealth of Australia defend and Viva and amicus curiaе the Animal Legal Defense Fund criticize, nor the wisdom of California’s wildlife rules or the federal government’s statutes and regulations. The only question before us is whether California’s rules can coexist with federal law.
I. Preemption Principles
The supremacy clause of the United States Constitution establishes a constitutional choice-of-law rule, makes federal law paramount, and vests Congress with the power to preempt state law. (
First, express preemption arises when Congress “define[s] explicitly the extent to which its enactments pre-empt state law. [Citation.] Pre-emption fundamentally is a question of congressional intent, [citation], and when Congress has made its intent known through explicit statutory language, the courts’ task is an easy one.”
(English v. General Electric Co., supra,
496 U.S. at pp. 78-79; accord,
Jevne v. Superior Court, supra,
“ ‘[C]ourts are reluctant to infer preemption, and it is the burden of the party claiming that Congress intended to preempt state law to prove it.’ ” (Olszewski v. Scripps Health, supra,30 Cal.4th at p. 815 , quoting Elsworth v. Beech Aircraft Corp. (1984)37 Cal.3d 540 , 548 [208 Cal.Rptr. 874 ,691 P.2d 630 ]; accord, Bronco Wine Co. v. Jolly, supra, 33 Cal.4th at pp. 956-957.)
We consider in turn the state and federal law at issue.
II.
Penal Code
Penal Code
In the trial court and Court of Appeal, Adidas argued unsuccessfully that Penal Code
Penal Code
There is a presumption against federal preemption in those areas traditionally regulated by the states: “[W]e start with the assumption that the historic police powers of the States were not to be superseded by the Federal Act unless that was the clear and manifest purpose of Congress.”
(Rice v. Santa Fe Elevator Corp., supra,
However, Penal Code
In
Crosby v. National Foreign Trade Council, supra,
In
American Ins. Assn. v. Garamendi
(2003)
Taking the most conservative course, we read
Crosby v. National Foreign Trade Council, supra,
In every preemption analysis, congressional intent is the “ ‘ultimate touchstone’ ”
(Medtronic, Inc.
v.
Lohr
(1996)
III. The Endangered Species Act of 1973
Responding to rising national and international concern over the impact of humans on other species, Congress passed the Endangered Species Act of 1973 (
States were to play an essential role in species preservation. Congress declared that “encouraging the States . . . through Federal financial assistance and a system of incentives, to develop and maintain conservation programs which meet national and international standards is a key to meeting the Nation’s international commitments and to better safeguarding, for the benefit of all citizens, the Nation’s heritage in fish, wildlife, and plants.” (
The Act’s legislative history confirms this vision of a joint cooperative state-federal approach to wildlife preservation. “The Senate believed that a federal wildlife progrаm should not preempt similar state regulation. The committee responsible for the Senate bill reported that ‘[w]hile the Federal government should protect such species where States have failed to meet minimum Federal standards, it should not preempt efficient programs. Instead[,] it should encourage these, and aid in the extension or establishment of others, to facilitate management by granting regulatory authority and making available financial assistance to approved schemes.’ ”
(Cresenzi Bird Importers, Inc. v. State of N.Y., supra,
With that background in mind, we turn to the Act’s key provision for our purposes, sеction 6(f) of the Act, codified at
Various aspects of the express preemption clause and savings clause are significant. First, these provisions continue the cooperative framework
established elsewhere in the Act, under which federal and state regulation should be allowed to coexist to the extent practicable. Where Congress establishes a regime of dual state-federal regulation, “conflict-pre-emption analysis must be applied sensitively ... so as to prevent the diminution of the role Congress reserved to the States while at the same time preserving the federal role.”
(Northwest Cent. Pipeline v. Kan. Corp. Comm’n
(1989)
Second, section 6(f) demonstrates a congressional intent to preempt only narrowly.
(Man Hing Ivory and Imports, Inc. v. Deukmejian
(9th Cir. 1983)
Third, with respect to unlisted species, section 6(f) leaves undisturbed the states’ broad traditional regulatory authority. The text of the section’s savings clause preserves state power to enact more stringent regulations even with respect to threatened and endangered species, those species for which federal concern is greatest. Neither section 6(f)’s preemption clause nor its savings clause mentions any impact on state power over unlisted species; by inference, that power is at least as
The legislative history confirms as much. Discussing the effect of section 6(f), the House Committee on Merchant Marine and Fisheries explained: “Existing state endangered species programs would, for examplе, be in a position to include species which were not on the Federal list. . . . [L]aws already passed in States such as New York, California and Hawaii, which list additional species or prohibit such activities as sales within their jurisdiction[,] would be unaffected.” (H.R.Rep. No. 93-412, 1st Sess., supra, p. 14, italics added; id. at p. 8 [with one exception, “the State powers to regulate in a more restrictive fashion or to include additional species remain unimpaired” (italics added)].)
The federal courts that have interpreted the Act agree. Thus, in
H.J. Justin & Sons, Inc.
v.
Deukmejian
(9th Cir. 1983)
The only exception to this preservation of state power is for activities specifically authorized by a federal exemption or permit. (§ 6(f) [state may not “prohibit what is authorized pursuant to an exemption or permit”]; H.R.Rep. No. 93-412, 1st Sess.,
supra,
p. 14 [“The only exception to [unfettered state power over unlisted species] is contained in the language which expressly prohibits the state from voiding actions specifically permitted by Federal agencies”];
Man Hing Ivory and Imports, Inc. v. Deukmejian, supra,
Section 6(f) does not expressly preempt Penal Code
IV. Obstacle Preemption
A. The Role of an Express Preemption Provision in Implied Preemption Analysis
We begin with a point overlooked by the Court of Appeal: the central role of the Act’s express preemption provision even in implied preemption analysis.
A majority of the United States Supreme Court once suggested that where Congress had enacted an express preemption provision, that provision was the exclusive and final statement of congressional preemptive intent and thus obviated
any
consideration of implied preemption doctrines.
(Cipollone v. Liggett Group, Inc., supra,
A slightly more tempered view of the force of express preemption provisions has since prevailed. In
Freightliner Corp. v. Myrick
(1995)
The Freightliner inference applies here. Congress has expressly identified the scope of the state law it intends to preempt; hence, we infer Congress intended to preempt no more than that absent sound contrary evidence. Neither Freightliner nor any subsequent case has spelled out precisely what force to accord this inference, and we need not do so here. As we shall discuss, Adidas’s evidence is insufficient to contradict the inference under any standard. 9
Here, Adidas asserts preemption by nonregulation. In the absence of any positive statutory provision or regulation governing kangaroos, Adidas relies on the history of the federal govеrnment’s involvement with Australian kangaroo management practices.
The United States Supreme Court has recognized that even the absence of federal regulation may give rise to implied preemption.
(Sprietsma
v.
Mercury Marine, supra,
Congress certainly has not done so. Instead, Adidas argues, and the Court of Appeal agreed, that the United States Fish and Wildlife Service’s (Fish and Wildlife) historical treatment of red, eastern grey, and western grey kangaroos demonstrates an affirmative intent to create, with respect to these three speсies, a zone free from state regulation. According to Adidas, that history shows Fish and Wildlife has adopted a “carrot and stick” approach, offering the threat of a ban on imports as a stick and access to United States markets as a carrot to induce Australian state and federal governments to conserve kangaroos. Thus, Adidas reasons, Penal Code
We examine the regulatory history mindful of the fact this is an area where Congress expressly contemplated a cooperative system of state and federal regulation, and where preemption analysis must remain sensitive to preserving the respective state and federal roles.
(Northwest Cent. Pipeline
v.
Kan. Corp. Comm’n, supra,
489 U.S. at pp. 514-515.) As well, we are especially reluctant to infer obstacle preemption based on agency actions as opposed to statute.
(Bronco Wine Co. v. Jolly, supra,
C. Federal Regulation—and Deregulation—of Kangaroos
The parties do not dispute the outline of Fish and Wildlife’s treatment of kangaroos
In the 20th century, a commercial market developed in Australia for kangaroo hides and meat. By the early 1970’s, the kangaroo population had dropped to the point that the Australian state and federal governments instituted protective measures such as a ban on exports and species-specific quotas on the killing of kangaroos for commercial use. (39 Fed.Reg. 11903 (Apr. 1, 1974); 45 Fed.Reg. 40958-40959 (June 16, 1980).)
In April 1974, Fish and Wildlife proposed listing the red, eastern grey, and western grey kangaroo as endangered species under the Act.
10
(39 Fed.Reg. 11903 (Apr. 1, 1974); 45 Fed.Reg. 40958 (June 16, 1980).) In December 1974, after recеiving public input and further considering the Act’s criteria, Fish and Wildlife instead listed these three species as threatened.*
11
(39 Fed.Reg. 44990 (Dec. 30, 1974); 45 Fed.Reg. 40959 (June 16, 1980).) Such a listing carries with it a prohibition on importation of the species, subject to exemptions or permits issued under the Act. (
In 1979, consistent with a provision of the Act requiring periodic reappraisal (
In 1983, Fish and Wildlife reviewed the situation and elected to continue allowing
In December 1989, Greenpeace USA, with support from other groups, petitioned Fish and Wildlife to reinstate the ban on importing the three kangaroo species and their body parts and products. The petitioners argued that Australia’s kangaroo management “was inherently flawed and that Australian States did not have adequate and effective conservation programs that ensured the protection of the threatened species.” (60 Fed.Reg. 12887, 12888 (Mar. 9, 1995).) In response, Fish and Wildlife sent representatives to Australia to evaluate both population levels and the Australian states’ implementation of their management programs and to prepare а report (the Nichols report). (60 Fed.Reg. 12887, 12888 (Mar. 9, 1995).)
Fish and Wildlife thereafter published a notice announcing receipt of Greenpeace USA’s petition and the availability of the Nichols report and seeking public comment. The Wildlife Legislative Fund of America (Fund) petitioned Fish and Wildlife to remove the three kangaroo species from the Act’s list of threatened species. Relying on the Nichols report, the Fund stressed two grounds to delist the species: (1) by “conservative estimates” the population of the three species totaled almost 14 million; and (2) “kangaroo conservation programs exist within individual range states .. ..” (60 Fed.Reg. 12887, 12888 (Mar. 9, 1995).)
After soliciting further comment, Fish and Wildlife published a proposed rule delisting the three kangaroo species. (58 Fed.Reg. 5341 (Jan. 21, 1993).) Fish and Wildlife found the four Australian states “had developed and implemented adequate and effective conservation programs that ensured the protection of these species[,] . . . kangaroo populations were high[,] ... the three species were protected by appropriate legislation, [they] had their populations regularly monitored by direct and indirect procedures, and [they] were managed by a complex licensing system which regulated the extent of the legal harvest.” (60 Fed.Reg. 12887, 12888 (Mar. 9, 1995).)
In March 1995, Fish and Wildlife removed the three kangaroo species from the Act’s list of endangered or threatened species. (60 Fed.Reg. 12887, 12888 (Mar. 9, 1995).) It “delistfed] these three species of kangaroos on the basis of
their successful recovery because the best scientific and commercial information available indicates the species are now not likely to become an endangered species in the foreseeable future throughout all or a significant part of [their] range.” (60 Fed.Reg. 12887, 12904 (Mar. 9, 1995); see
Today, the Australian government permits the commercial use of kangaroos and the exportation of kangaroo leather and meat, subject to quotas and other government regulation. According to amicus curiae the Government of the Commonwealth of Australia, the 2005 population of red, eastern grey, and western grey kangaroos was just under 25 million. The Australian government still considers some species threatened or endangered, but nоt the species at issue here. 12
The parties agree that since the three species have been delisted under the Act, their importation into the United States is not prohibited by federal law. (See
D. Analysis
This history does not establish any “authoritative” policy against state regulation. Fish and Wildlife listed the red, eastern grey, and western grey kangaroo in 1974 based solely on the ecological considerations contained in the Act. (39 Fed.Reg. 44990 (Dec. 30, 1974); 45 Fed.Reg. 40958-40959 (June 16, 1980); see
Nor is there authoritative evidence that there exists
today
a federal kangaroo policy implemented by Fish and Wildlife to which Penal Code
The Court of Appeal found significant Fish and Wildlife’s 1974 imposition of an import ban on kangaroo products, subject to development of Australian species management plans, and its 1981 decision to lift the import ban, as reflective of a then extant policy to persuade the Australian federal and state governments to change their kangaroo management practices. Fish and Wildlife’s actions may well have reflected such a policy (see
Defenders of Wildlife, Inc.
v.
Watt
(D.D.C. 1981) 1981 U.S.Dist. Lexis 18548, at pp. *6-*9 [discussing purported reasons behind Fish and Wildlife’s actions]), and were we presented with this preemption question 20 years ago, we might have found these actions similarly significant.
15
Today, however, they have no relevance. Species management plans have been adopted; the three species have recovered; the special rule allowing imports has been rescinded; the species are no longer the subject of ongoing federal regulation; and the Government of the Commonwealth of Australia professes to have, and Fish and Wildlife believes it sincerely has, an independent, strong, ongoing interest in species conservation and in preservation of a national symbol. (60 Fed.Reg. 12887, 12889 (Mar. 9, 1995) [Fish and Wildlife “believes that the Commonwealth and State governments in Australia have a sincere interest in the preservation of their native wildlife species and act in a professional manner to manage these kangaroo species so they will occur in abundance into perpetuity. [Fish and Wildlife] has no reason to believe that market pressures will one day insidiously drive conservation activities in Australia, and notes that the United States and the
The Court of Appeal also found it significant that after delisting, Fish and Wildlife would continue to monitor the three kangaroo species’ status and could invoke emergency listing procedures if necessary. However, these are simply inherent features of the Act; monitoring is mandatory for all delisted species, and the emergency listing procedures apply to all unlisted species, period. (See
In the end, Adidas’s preemption argument rests on the assertion that Penal Code
This case is analogous to
Bronco Wine Co.
v.
Jolly, supra,
Disposition
The Court of Appeal’s judgment is reversed, and this case is remanded to allow the Court of Appeal to address Adidas’s remaining claims.
George, C. J., Kennard, J., Baxter, J., Chin, J., Moreno, J., and Corrigan, J., concurred.
Notes
“Kangaroo” is the common name for the indigenous Australian animal of the scientific superfamily Macropodoidea (or macropods). There are at least 69 species of macropods.
We note some controversy over the true source of Congress’s power to preempt state regulation. (Compare
Gade
v.
National Solid Wastes Management Assn.
(1992)
“[T]he categories of preemption are not ‘rigidly distinct.’ ”
(Crosby
v.
National Foreign Trade Council
(2000)
See
Kleppe v. New Mexico
(1976)
We need not, and do not, formally decide whether this is so. Even if some form of a presumption against preemption survives these cases in situations touching on foreign affairs, it does not affect the outcome here because, as we shall discuss, even without an antipreemption presumption, we find no basis for preemption.
Where a statute “contains an express pre-emption clаuse, our ‘task of statutory construction must in the first instance focus on the plain wording of the clause, which necessarily contains the best evidence of Congress’ pre-emptive intent.’ ”
(Sprietsma v. Mercury Marine, supra,
537 U.S. at pp. 62-63, quoting
CSX Transp., Inc. v. Easterwood
(1993)
Adidas dismisses
H.J. Justin & Sons, Inc. v. Deukmejian, supra,
As well, states may not purport to authorize what federal law forbids, but this exception is not implicated here.
We note as well that “Congress has the power to preclude conflict [and obstacle] preemption, allowing states to enforce laws even if those laws are in direct conflict with federal law or frustrate the purpose of federal law”
(Dowhal v. SmithKline Beecham Consumer Healthcare, supra,
An endangered species is one “in danger of extinction throughout all or a significant portion of its range.” (
A threatened species is one “likely to become an endangered species within the foreseeable future throughout all or a significant portion of its range.” (
At oral argument, Adidas noted that one subspecies of eastern grey kangaroo located only on Tasmania, the forester kangaroo
(Macropus giganteus tasmaniensis),
remains endangered. (See
As amicus curiae the Government of the Commonwealth of Australia confirms, the “Australian Government has not received any approach from the United States Government that would suggest that the United States considers non-CITES listed kangaroos to be endangered or at risk of becoming endangered.” The three species at issue here are not listed as endangered under CITES, the Convention on International Trade in Endangered Species of Wild Fauna and Flora, March 3, 1973 (27 U.S.T. 1087, T.I.A.S. No. 8249).
Fish and Wildlife explained as much at the time of delisting. A commentаtor arguing for continued listing asserted: “The ‘threatened’ listing was valuable because it allowed [Fish and Wildlife] to act as an international watchdog on the kangaroo industry.” Fish and Wildlife replied: “[Fish and Wildlife] promotes the international conservation of species and the international enhancement of biodiversity. [Fish and Wildlife] is obligated to properly classify these species based on the criteria stipulated in the Act.” (60 Fed.Reg. 12887, 12890 (Mar. 9, 1995); see also
id.
at p. 12889 [Fish and Wildlife “disagrees that threatened status should be retained for these abundant and sufficiently managed species, at this time, to ensure that a primary industry behaves or because one day the threatened status may somehow be useful in the management of kangaroos. [Fish and Wildlife] believes the lists of endangered and threatened species should only include those animals and plants whose current status fit the definitions of the Act”].) In other words, Fish and Wildlife could not use its power to list or delist as a tool of international leverage; it was constrained to obey the terms of the Act, which confined listing criteria to specified ecological considerations. Nowhere in the delisting decision did Fish and Wildlife express any intent that states be excluded from regulating on a going-forward basis. (See
Bronco Wine Co. v. Jolly, supra,
Or not. Even in 1983, when Fish and Wildlife extended the lifting of the import ban, it recognized “[t]he U.S. market has been small (less than 5 percent of total exported), and has had no effect on kangaroo populations or kill quotas.” (48 Fed.Reg. 34757 (Aug. 1, 1983).) Thus, even then one state’s import ban may have posed no obstacle to Fish and Wildlife’s overall conservation goals.
Monitoring in this context primarily involves the passive receipt and review of reports from the Australian government. (60 Fed.Reg. 12887, 12904-12905 (Mar. 9, 1995).)
States may not “prohibit what is authorized pursuant to an exemption or permit provided for in this chapter or in any regulation which implements this chapter.” (§ 6(f).)