US Supreme Court sheds light on Compact debate

In Tarrant Regional Water District v. Herrmann, 2013 WL 2631063 (2013), the US Supreme Court upheld the principle that interstate compacts are contracts construed under contract law principles and may pre-empt state statute. A compact’s express terms are the best indication of the parties’ intent.  If the express terms of the compact are ambiguous, other interpretive tools may be used to shed light on the intent of the Compact’s drafters.

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