US Supreme Court to rule on Hawai'i gas law

[Quetzal]

Supreme Court to rule on Hawai'i gas law

The U.S. Supreme Court said today it would decide whether Hawai'i went too far to keep gasoline affordable for residents when it imposed rent caps on dealer-run stations.

Lower courts said the 1997 law, intended to protect independent dealers, promote competition and lower gasoline prices, was unconstitutional. The state Attorney General petitioned the Supreme Court to review the case in July, primarily on grounds the courts should give more deference to the state Legislature on economic and social policy matters.

"This case raises questions of profound importance concerning the proper relationship between the courts and institutions of democratic governance," Attorney General Mark Bennett said in a written statement. "The state is pleased the Supreme Court agreed to resolve this important question."

Regardless of how the Supreme Court rules a decision on the legality of rent caps would come too late for former Shell dealer Warren Higa. One-year ago Higa closed Makiki Shell following a tripling of the station's monthly rent by Shell Oil Co. to $19,000 over a three-year period.

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Supreme Court to rule on Hawai'i gas law