Insights

On June 25, 2026, the U.S. Supreme Court issued its landmark decision in Monsanto Co. v. Durnell, No. 24-1068, resolving a circuit split over whether the Federal Insecticide, Fungicide, and Rodenticide Act (FIFRA) preempts state law failure-to-warn claims challenging EPA-approved pesticide labels. In a 7-2 opinion, the Court held that FIFRA expressly preempts state tort claims that would require a manufacturer to add or modify warnings on a pesticide label, at least where the U.S. Environmental Protection Agency (EPA) has evaluated the relevant risk and approved the label, whether with warnings reflecting the agency’s assessment or without a corresponding warning.

The U.S. Court of Appeals for the Seventh Circuit recently vacated the U.S. Tax Court’s decision in Hyatt Hotels v. Commissioner, a case concerning the taxation of loyalty programs. The Seventh Circuit remanded the case to the Tax Court for further review.

In its April 21, 2026, opinion, the U.S. Court of Appeals for the Tenth Circuit affirmed the lower court’s ruling in Liberty Global, holding that the codified economic substance doctrine applies even when a taxpayer mechanically utilizes the provisions of the Tax Code. The court also held that common mergers and acquisitions elements and basic business transactions are not categorically carved out from the economic substance doctrine. The court dismissed the taxpayer’s argument that a separate relevancy determination needs to be made before the economic substance doctrine can be applied.