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Monday, August 2, 2010

The federal district court has denied the motion to dismiss in the Virginia lawsuit challenging the Obamacare individual mandate.

Ilya Somin comments on the opinion, which I'm about to read. I'll have more soon.

ADDED: Half of the opinion is about the state's standing to bring the lawsuit. Judge Hudson wrote that the state was not suing on behalf of taxpayers but based on its own interests defending the Virginia Health Care Freedom Act from preemption by federal law. Under this theory, it doesn't matter that the state of Virginia won't have to pay the penalties the federal law imposes on those who don't buy health insurance. It's enough that Virginia's power to pass its own law has been impinged on by the allegedly unconstitutional federal law. That theory also avoids a problem with the Anti-Injunction Act. The judge also found the case satisfied the ripeness requirement because the issues are "fully framed" and "the underlying facts are well settled."

As for the question whether the individual mandate is supported by the Commerce Clause (with an assist from the Necessary and Proper Clause), the judge elaborates the "widely divergent and at times novel" arguments of the 2 sides and concludes inconclusively that he is not at this time ready to say that Virginia has failed to state a claim. Then there is the alternate power basis for the law, the taxing power. Again the judge lays out the arguments, recites the precedent, and declares the matter too uncertain to resolve as a matter of law on a motion to dismiss. Thus, the case continues.

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