The U.S. Supreme Court last week ruled in favor of Ohio Attorney General Richard Cordray last week when it said in a unanimous ruling that federal courts must defer to state courts on challenges to state law.

The court sided with Cordray by dismissing a federal lawsuit that challenged Ohio’s tax standards for natural gas suppliers. The ruling stems from Levin v. Commerce Energy Inc., in which the natural gas supplier sued the Ohio Tax Commissioner in federal court, saying  the state violated the U.S. Constitution by applying different tax standards to different gas suppliers. Commerce Energy Inc. argued it was discriminated against by having to pay taxes while local suppliers are given tax exemptions. 

Subscribe Now

Independent and authoritative analysis and perspective for the bond buying industry.

14-Day Free Trial

No credit card required. Complete access to articles, breaking news and industry data.