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2023-2024 Wis. L. Rev. Forward 1 (2023-2024)

handle is hein.journals/wlron2023 and id is 1 raw text is: RECENT U.S. SUPREME COURT DECISION SHOWS THAT THE DORMANT COMMERCE CLAUSE DOES NOT PRECLUDE WISCONSIN FAIR DEALERSHIP LAW DAMAGES FOR SALES BEYOND STATE BORDERS JEFFREY A. MANDELL & ISAAC S. BRODKEY* Introduction ...............................................................................................1 I. The Commerce Clause and State Dealership Laws ...............................2 A. Morley-Murphy Suggested a Limitation on the WFDL's Reach......4 B. The Third Circuit Found No Commerce Clause Violation in the Extraterritorial Reach of New Jersey's Franchise Law .........................5 C. Morley-Murphy Distinguished and Criticized Instructional Systems, but without Any Compelling Basis........................................................8 II. Recent Case Law Underscores that Morley-Murphy's Analysis Is Incorrect...................................................................................................10 A. Ross Clarifies that Antidiscrimination Is the Touchstone Inquiry under the Dormant Commerce Clause.................................................10 B. The Antidiscrimination Principle Makes Clear that the WFDL Can Apply to Wisconsin Dealerships Even Beyond Wisconsin's Borders.12 Conclusion...............................................................................................14 INTRODUCTION Twenty-five years ago, in Morley-Murphy Co. v. Zenith Electronics Corp., the Seventh Circuit warned that courts should not construe the Wisconsin Fair Dealership Law (WFDL) to authorize lost-profits damages arising from sales anticipated outside of Wisconsin, lest doing so raise constitutional concerns under the so-called dormant Commerce Clause.2 Some commentators and litigants have questioned the basis for this * Jeffrey A. Mandell is a partner at Stafford Rosenbaum LLP in Madison, Wisconsin, where he maintains a broad practice in appellate and trial litigation, with particular concentrations on democracy issues and dealership law. He is a current co-author of the definitive treatise on the Wisconsin Fair Dealership Law, which is published by the State Bar of Wisconsin. Isaac S. Brodkey is a senior associate in Stafford Rosenbaum LLP's Madison office; his practice focuses primarily on dealership and franchise issues. Stephen C. Goettsche assisted with researching and writing this article. 1. 142 F.3d 373 (7th Cir. 1998). 2. See id. at 379-81.