ITALIAN COLORS RESTAURANT v. BECERRA

No. 15-15873.

878 F.3d 1165 (2018)

ITALIAN COLORS RESTAURANT, a California Business Entity; Alan Carlson, Owner, Italian Colors Restaurant; Laurelwood Cleaners, LLC, DBA Laurelwood Cleaners and Laundry, DBA Milo's Cleaners and Laundry, a California Limited Liability Company; Jonathan Ebrahimian, Owner, Laurelwood Cleaners, LLC; Family Life Corporation, DBA Family Graphics, a California Corporation; Toshio Chino, Owner, Family Life Corporation; Stonecrest Gas & Wash, a California Business Entity; Salam Razuki, Co-owner, Stonecrest Gas & Wash; Leon's Transmission Service, Inc., a California Corporation; Vincent Archer, Administrator/Controller, Leon's Transmission Service, Inc., Plaintiffs-Appellees, v. Xavier BECERRA, Attorney General, State of California, Defendant-Appellant.

United States Court of Appeals, Ninth Circuit.

Filed January 3, 2018.


Attorney(s) appearing for the Case

John W. Killeen (argued) and Anthony R. Hakl , Deputy Attorneys General; Stepan A. Haytayan , Supervising Deputy Attorney General; Douglas J. Woods and Thomas S. Patterson , Senior Assistant Attorneys General; Xavier Becerra , Attorney General; Office of the Attorney General, Sacramento, California; for Defendant-Appellant.

Deepak Gupta (argued) and Jonathan E. Taylor , Gupta Wessler PLLC, Washington, D.C.; Mark Wendorf , Reinhardt Wendorf & Blanchfield, St. Paul, Minnesota; Kevin K. Eng , Markun Zusman Freniere & Compton LLP, San Francisco, California; for Plaintiffs-Appellees.

Michael E. Chase , Boutin Jones Inc., Sacramento, California, for Amicus Curiae Credit Union National Association.

Richard A. Arnold , William J. Blechman , and James T. Almon , Kenny Nachwalter PA, Miami, Florida, for Amici Curiae Safeway Inc., The Kroger Co., Walgreen Co., Albertson's LLC, and Hy-Vee Inc.

Thomas S. Knox , Knox Lemmon & Anapolsky LLP, Sacramento, California, for Amicus Curiae California Retailers Association.

Dale A. Stern , Downey Brand LLP, Sacramento, California, for Amicus Curiae California Grocers Association.

Eric L. Bloom , Hangley Aronchick Segal Pudlin & Schiller, Harrisburg, Pennsylvania, for Amicus Curiae Rite Aid Corporation.

John J. McDermott , General Counsel, Arlington, Virginia, as and for Amicus Curiae National Apartment Association.

Before: Diarmuid F. O'Scannlain and Johnnie B. Rawlinson, Circuit Judges, and Sarah S. Vance, District Judge.


OPINION

Plaintiffs challenge the constitutionality of California Civil Code Section 1748.1(a). This statute prohibits retailers from imposing a surcharge on customers who make payments with credit cards, but permits discounts for payments by cash or other means. The district court granted summary judgment in favor...

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