Volkswagen of America, Inc. v. Smit

Summary

The Supreme Court of Virginia held that Code § 46.2-1569(7), governing equitable allocation of vehicles by motor vehicle manufacturers, was impermissibly vague as applied to Volkswagen of America, Inc. The Court concluded that Volkswagen lacked fair notice that the statute required delivery of at least one vehicle of each requested newly introduced model to a dealer under the circumstances presented. The Court reversed the judgment affirming the Commissioner’s violation finding, vacated the Court of Appeals’ Commerce Clause ruling, and entered final judgment for Volkswagen.

Holdings

1. Code § 46.2-1569(7) was impermissibly vague as applied because neither the statutory language nor any regulation or official guidance gave Volkswagen fair notice that it was prohibited from shipping zero newly introduced vehicles to Miller Auto under the circumstances identified by the Commissioner.
2. The court did not decide whether Code § 46.2-1569(7) was facially invalid or whether it violated the dormant Commerce Clause because the appeal could be resolved on the narrower as-applied due process ground.

Questions Presented

1. Whether Code § 46.2-1569(7), as applied to Volkswagen's failure to ship newly introduced Passats and New Beetles to Miller Auto, was impermissibly vague under the Due Process Clauses of the United States and Virginia Constitutions.
2. Whether the Court of Appeals' determination that Code § 46.2-1569(7) did not violate dormant Commerce Clause principles should stand.

Disposition

other