Preemption
Federal preemption -- the concept that federal law trumps state and local law when Congress so intends or when conflicts or inconsistencies are present--is vitally important to companies doing business in multiple states because it allows them to operate under one set of rules rather than having to accommodate varying and perhaps even conflicting rules in each state. Uniform national rules foster economic growth by preventing a balkanization of markets and ensuring national and international markets for goods and services. When applied to requirements imposed by state tort law, preemption often brings the added benefit of limiting unwarranted liability and ensuring that safety decisions are made by regulators with a national perspective.
The U.S. Chamber Institute for Legal Reform is working to promote the use of federal regulatory authority to preempt state common law claims for damages that are inconsistent with legal reform, including in cases involving failure-to-warn and product safety or design defect challenges. Among its efforts, ILR:
– Works with various groups to explore preemption opportunities under federal agencies' existing authority, including on laws dealing with prescription drug labeling, pesticide labeling and transportation safety standards.
– Supports, through the National Chamber Litigation Center - the U.S. Chamber's public policy law firm - the filing of friend-of-the-court briefs in cases involving questions of federal preemption.
– Comments publicly on the issue such as in its article on the importance of federal preemption in the Harvard Journal of Law and Public Policy.
In January 2006, the U.S. Food and Drug Administration publicly announced its support for preemption, including language preempting state product liability laws in the preamble to the final rule on prescription drug labeling.
Several states have passed legislation recognizing federal preemption, most notably Michigan’s 1996 "FDA defense" law which limits product liability lawsuits over drugs approved by the FDA. In Indiana, Kansas, New Jersey, Ohio, Oregon, and Tennessee, punitive damages are limited for drug manufacturers who comply with FDA regulations.
The Institute for Legal Reform will continue to support federal preemption rules to help promote fair and consistent application of liability laws across the 50 states.
