Brown & Williamson Tobacco Corp. v. Food & Drug Administration

153 F.3d 155
CourtCourt of Appeals for the Fourth Circuit
DecidedAugust 14, 1998
DocketNos. 97-1604, 97-1581, 97-1606, 97-1614 and 97-1605
StatusPublished
Cited by24 cases

This text of 153 F.3d 155 (Brown & Williamson Tobacco Corp. v. Food & Drug Administration) is published on Counsel Stack Legal Research, covering Court of Appeals for the Fourth Circuit primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Brown & Williamson Tobacco Corp. v. Food & Drug Administration, 153 F.3d 155 (4th Cir. 1998).

Opinions

Reversed by published opinion. Judge WIDENER wrote the opinion, in which Senior Judge MICHAEL joined. Senior Judge K.K. HALL wrote a dissenting opinion.

WIDENER, Circuit Judge:

On August 28, 1996, the Food and Drug Administration (FDA) published a final rule entitled “Regulations Restricting the Sale and Distribution of Cigarettes and Smokeless Tobacco to Protect Children and Adolescents.” 61 Fed.Reg. 44,396 (1996) (to be codified at 21 C.F.R. pt. 801, et al.). In general, this rule set out regulations restricting the sale and distribution of cigarettes and smokeless tobacco (collectively referred to as tobacco products) to minors and limiting the advertising and promotion of tobacco products. Plaintiffs (cigarette and smokeless tobacco manufacturers, convenience store retailers, and advertisers) filed these consolidated actions in federal district court, challenging the FDA’s jurisdiction over tobacco products and seeking declaratory and injunctive relief.1 Plaintiffs then filed a motion for summary judgment in the district court, alleging that, as a matter of law: (1) Congress has withheld from the FDA the jurisdiction to regulate tobacco products as marketed by plaintiffs; and (2) the Federal Food, Drug, and Cosmetic Act (Act) does not permit the FDA to regulate tobacco products either as drugs or as devices. In denying plaintiffs’ motion for summary judgment in part and granting the motion in part, the district court held that Congress did not “[intend] to withhold from FDA” the jurisdiction to regulate tobacco products. Coyne Beahm, Inc. v. FDA 966 F.Supp. 1374, 1388 (M.D.N.C.1997). The district court also concluded that the FDA had authority to regulate tobacco products under the device provision of the Act, but disapproved the FDA’s restrictions on advertising as inconsistent with its statutory authority. Coyne Beahm, 966 F.Supp. [160]*160at 1393-1400. Finally, the district court stayed implementation of the majority of the FDA’s regulations pending appeal.2 Coyne Beahm, 966 F.Supp. at 1400-01. The district court certified its order for immediate interlocutory appeal pursuant to 28 U.S.C. § 1292(b), Coyne Beahm, 966 F.Supp. at 1401, and by order dated May 13, 1997, this court granted the § 1292(b) petitions for immediate appeal filed by two of the plaintiff groups and the FDA. In addition, the FDA had filed its Notice of Appeal dated May 2, 1997 from the partial injunction granted by the district court. Jurisdiction over the consolidated appeals is proper in this court under 28 U.S.C. §§ 1292(a)(1) and 1292(b).

Because this case arises from a motion for summary judgment, we review the judgment of the district court de novo. Myers v. Finkle, 950 F.2d 165, 167 (4th Cir.1991). For purposes of these appeals, plaintiffs do not dispute the factual findings of the FDA. Based on our review of the record and the relevant legal authorities, we are of opinion that the FDA lacks jurisdiction to regulate tobacco products. For the reasons set forth below, all of the FDA’s August 28,' 1996 regulations of tobacco products are thus invalid. Accordingly, we reverse the judgment of the district court.

I. FDA’s Asserted Basis for Jurisdiction

The FDA3 has authority to regulate products only if they fall within one of the categories defined by Congress in the Act.4 In the jurisdictional determination attached to its August 28, 1996 regulations, the FDA asserted jurisdiction over tobacco products under the drug5 and device6 definitions in the Act. 61 Fed.Reg. at 44,628. According to the FDA, tobacco products fit within these definitions because they are “intended to affect the structure or any function of the body.” More specifically, the FDA concluded that tobacco products are “combination products consisting of nicotine, a drug that causes addiction and other significant pharmacological effects on the human body, and device components that deliver nicotine to the body.”7 61 Fed.Reg. at 44,628, 44,649-650. Based on its classification of tobacco products as combination products, the FDA claimed that it could exercise its discretion in deciding whether the drug provisions or device provisions of the Act should apply. 61 Fed. Reg. at 44,400. Although finding that tobacco products function primarily as drugs, 61 Fed.Reg. at 45,209-218, the FDA concluded that tobacco products are most properly regulated under the device provisions of the Act, in particular the restricted devices section, 21 [161]*161U.S.C. § 360j(e).8 61 Fed.Reg. at 44,400. The FDA’s jurisdictional determination encompasses over 600 pages in the Federal Register; however, its basic premise can be fairly summarized in one sentence. That is, the FDA asserted jurisdiction over tobacco products based on its conclusion that tobacco products fit within the literal definitions of drug and device as set forth in the Act. In short, the FDA’s inquiry began and ended with the definitions section of the Act.

We are of opinion that the FDA’s limited, mechanistic inquiry is insufficient to determine Congress’ intent. Therefore, as directed by Chevron U.S.A., Inc. v. Natural Resources Defense Council, Inc., 467 U.S. 837, 104 S.Ct. 2778, 81 L.Ed.2d 694 (1984), we employ the traditional tools of statutory construction to ascertain congressional intent regarding whether the FDA has authority to regulate tobacco products.

II. Jurisdictional Analysis

We begin with the basic proposition that agency power is “not the power to make law. Rather, it is ‘the power to adopt regulations to carry into effect the will of Congress as expressed by the statute.’” Ernst & Ernst v. Hochfelder, 425 U.S. 185, 213-14, 96 S.Ct. 1375, 47 L.Ed.2d 668 (1976) (quoting Manhattan Gen. Equip. Co. v. Commission, 297 U.S. 129, 134, 56 S.Ct. 397, 80 L.Ed. 528 (1936)). Thus, our initial inquiry is whether Congress intended to delegate to the FDA authority to regulate tobacco products as “customarily marketed.”9 The district court framed the issue as “whether Congress has evidenced its clear intent to withhold from FDA jurisdiction to regulate tobacco products as customarily marketed.” Coyne Beahm, 966 F.Supp. at 1380. However, we are of opinion that the issue is correctly framed as whether Congress intended to delegate such jurisdiction to the FDA. See Bowen v. Georgetown Univ. Hosp., 488 U.S. 204, 208, 109 S.Ct. 468, 102 L.Ed.2d 493 (1988) (stating that “[i]t is axiomatic that an administrative agency’s power to promulgate legislative regulations is limited to the authority delegated by Congress”); INS v. Chadha, 462 U.S. 919, 953 n. 16, 955 n. 19, 103 S.Ct.

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Brown & Williamson Tobacco Corporation Lorillard Tobacco Company Philip Morris, Incorporated Rj Reynolds Tobacco Company, and Coyne Beahm, Incorporated Liggett Group, Incorporated v. Food & Drug Administration David A. Kessler, M.D., Commissioner of Food and Drugs, Attorneys General of the State of Minnesota State of Alaska State of Arizona State of Arkansas State of Colorado State of Connecticut State of Florida State of Hawaii State of Illinois State of Indiana State of Iowa State of Louisiana State of Kansas State of Maine State of Maryland State of Massachusetts State of Michigan State of Mississippi State of Missouri State of Montana State of Nevada State of New Hampshire State of New Jersey State of New Mexico State of New York State of North Dakota State of Ohio State of Oklahoma State of Oregon State of Pennsylvania State of Rhode Island State of South Dakota State of Texas State of Utah State of Vermont State of Washington State of West Virginia State of Wisconsin the City and County of San Francisco Public Citizen the American Academy of Pediatrics American Cancer Society American College of Preventive Medicine American Heart Association American Lung Association American Medical Association American Medical Women's Association American Public Health Association American Society of Addiction Medicine the Hmo Group National Association of Elementary School Principals National Association of Secondary School Principals National Center for Tobacco-Free Kids State of Kentucky Washington Legal Foundation ("Wlf") Mario Andretti Don Garlits Al Unser Rusty Wallace Cale Yarborough Richard Burr, Cass Ballenger, Howard Coble, United States Representatives, Lauch Faircloth, United States Senator, Amici Curiae. Coyne Beahm, Incorporated Brown & Williamson Tobacco Corporation Philip Morris, Incorporated Rj Reynolds Tobacco Company National Association of Convenience Stores Acme Retail, Incorporated United States Tobacco Company Conwood Company, Lp National Tobacco Company, Lp Pinkerton Tobacco Company Swisher International, Incorporated Central Carolina Grocers, Incorporated J.T. Davenport, Incorporated North Carolina Tobacco Distributors Committee, Incorporated the American Advertising Federation American Association of Advertising Agencies Association of National Advertisers, Incorporated Magazine Publishers of America the Outdoor Advertising Association of America, Incorporated Point of Purchase Advertising Institute Lorillard Tobacco Company, and Liggett Group, Incorporated v. Food & Drug Administration David A. Kessler, M.D., Commissioner of Food and Drugs, Attorneys General of the State of Minnesota State of Alaska State of Arizona State of Arkansas State of Colorado State of Connecticut State of Florida State of Hawaii State of Illinois State of Indiana State of Iowa State of Louisiana State of Kansas State of Maine State of Maryland State of Massachusetts State of Michigan State of Mississippi State of Missouri State of Montana State of Nevada State of New Hampshire State of New Jersey State of New Mexico State of New York State of North Dakota State of Ohio State of Oklahoma State of Oregon State of Pennsylvania State of Rhode Island State of South Dakota State of Texas State of Utah State of Vermont State of Washington State of West Virginia State of Wisconsin City and County of San Francisco Public Citizen the American Academy of Pediatrics American Cancer Society American College of Preventive Medicine American Heart Association American Lung Association American Medical Association American Medical Women's Association American Public Health Association American Society of Addiction Medicine the Hmo Group National Association of Elementary School Principals National Association of Secondary School Principals National Center for Tobacco-Free Kids State of Kentucky Washington Legal Foundation ("Wlf") Mario Andretti Don Garlits Al Unser Rusty Wallace Cale Yarborough Richard Burr, Cass Ballenger, Howard Coble, United States Representatives, Lauch Faircloth, United States Senator, Amici Curiae. Coyne Beahm, Incorporated Brown & Williamson Tobacco Corporation Lorillard Tobacco Company Philip Morris, Incorporated Rj Reynolds Tobacco Company United States Tobacco Company Conwood Company, Lp National Tobacco Company, Lp Pinkerton Tobacco Company Swisher International, Incorporated Central Carolina Grocers, Incorporated J.T. Davenport, Incorporated North Carolina Tobacco Distributors Committee, Incorporated the American Advertising Federation American Association of Advertising Agencies Association of National Advertisers, Incorporated Magazine Publishers of America the Outdoor Advertising Association of America, Incorporated Point of Purchase Advertising Institute National Association of Convenience Stores Acme Retail, Incorporated, and Liggett Group, Incorporated v. Food & Drug Administration David A. Kessler, M.D., Commissioner of Food and Drugs, Attorneys General of the State of Minnesota State of Alaska State of Arizona State of Arkansas State of Colorado State of Connecticut State of Florida State of Hawaii State of Illinois State of Indiana State of Iowa State of Louisiana State of Kansas State of Maine State of Maryland State of Massachusetts State of Michigan State of Mississippi State of Missouri State of Montana State of Nevada State of New Hampshire State of New Jersey State of New Mexico State of New York State of North Dakota State of Ohio State of Oklahoma State of Oregon State of Pennsylvania State of Rhode Island State of South Dakota State of Texas State of Utah State of Vermont State of Washington State of West Virginia State of Wisconsin City and County of San Francisco Public Citizen the American Academy of Pediatrics American Cancer Society American College of Preventive Medicine American Heart Association American Lung Association American Medical Association American Medical Women's Association American Public Health Association American Society of Addiction Medicine the Hmo Group National Association of Elementary School Principals National Association of Secondary School Principals National Center for Tobacco-Free Kids State of Kentucky Washington Legal Foundation ("Wlf") Mario Andretti Don Garlits Al Unser Rusty Wallace Cale Yarborough Richard Burr, Cass Ballenger, Howard Coble, United States Representatives, Lauch Faircloth, United States Senator, Amici Curiae. National Association of Convenience Stores Acme Retail, Incorporated v. David A. Kessler, Commissioner of the Food & Drug Administration Food & Drug Administration, Attorneys General of the State of Minnesota State of Alaska State of Arizona State of Arkansas State of Colorado State of Connecticut State of Florida State of Hawaii State of Illinois State of Indiana State of Iowa State of Louisiana State of Kansas State of Maine State of Maryland State of Massachusetts State of Michigan State of Mississippi State of Missouri State of Montana State of Nevada State of New Hampshire State of New Jersey State of New Mexico State of New York State of North Dakota State of Ohio State of Oklahoma State of Oregon State of Rhode Island State of South Dakota State of Texas State of Utah State of Vermont State of Washington State of Wisconsin State of West Virginia City and County of San Francisco Public Citizen the American Academy of Pediatrics American Cancer Society American College of Preventive Medicine American Cancer Society American Lung Association American Medical Association American Medical Women's Association American Public Health Association American Society of Addiction Medicine the Hmo Group National Association of Elementary School Principals National Association of Secondary School Principals National Center for Tobacco-Free Kids State of Kentucky Washington Legal Foundation, ("Wlf") Mario Andretti, Don Garlits Al Unser Rusty Wallace Cale Yarborough Richard Burr, Cass Ballenger, Howard Coble, United States Representatives, Lauch Faircloth, United States Senator, Amici Curiae. United States Tobacco Company Brown & Williamson Tobacco Corporation Conwood Company, Lp National Tobacco Company, Lp Pinkerton Tobacco Company Swisher International, Incorporated Central Carolina Grocers, Incorporated J.T. Davenport, Incorporated North Carolina Tobacco Distributors Committee, Incorporated v. Food & Drug Administration David A. Kessler, M.D., Commissioner of Food and Drugs, Attorneys General of the State of Minnesota State of Alaska State of Arizona State of Arkansas State of Colorado State of Connecticut State of Florida State of Hawaii State of Illinois State of Indiana State of Iowa State of Louisiana State of Kansas State of Maine State of Maryland State of Massachusetts State of Michigan State of Mississippi State of Missouri State of Montana State of Nevada State of New Hampshire State of New Jersey State of New Mexico State of New York State of North Dakota State of Ohio State of Oklahoma State of Oregon State of Pennsylvania State of Rhode Island State of South Dakota State of Texas State of Utah State of Vermont State of Washington State of Wisconsin State of West Virginia City and County of San Francisco Public Citizen the American Academy of Pediatrics American Cancer Society American College of Preventive Medicine American Heart Association American Lung Association American Medical Association American Medical Women's Association American Public Health Association American Society of Addiction Medicine the Hmo Group National Association of Elementary School Principals National Association of Secondary School Principals National Center for Tobacco-Free Kids State of Kentucky Washington Legal Foundation, ("Wlf") Mario Andretti, Don Garlits Al Unser Rusty Wallace Cale Yarborough Richard Burr, Cass Ballenger, Howard Coble, United States Representatives, Lauch Faircloth, United States Senator, Amici Curiae
153 F.3d 155 (Second Circuit, 1998)

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Bluebook (online)
153 F.3d 155, Counsel Stack Legal Research, https://law.counselstack.com/opinion/brown-williamson-tobacco-corp-v-food-drug-administration-ca4-1998.