Cite as: 509 U. S. 86 (1993)
O'Connor, J., dissenting
ernmental immunity was meant to protect—the Federal Government's—denying Davis retroactive application would not undermine the decision's purpose or effect.
3
The final factor under Chevron Oil is whether the decision " 'could produce substantial inequitable results if applied retroactively.' " Chevron Oil, supra, at 107 (quoting Cipriano v. City of Houma, 395 U. S., at 706). We repeatedly have declined to give our decisions retroactive effect where doing so would be unjust. In Arizona Governing Committee v. Norris, supra, for example, we declined to apply a Title VII decision retroactively, noting that the resulting "unanticipated financial burdens would come at a time when many States and local governments are struggling to meet substantial fiscal deficits." Id., at 1106-1107 (Powell, J., joined by Burger, C. J., Blackmun, Rehnquist, and O'Connor, JJ.). There was "no justification" for "impos[ing] this magnitude of burden retroactively on the public," we concluded. Id., at 1107. Accord, id., at 1107-1111 (O'Connor, J., concurring); see id., at 1075 (per curiam). Similarly, we declined to afford the plaintiff full retroactive relief in Los Angeles Dept. of Water and Power v. Manhart, 435 U. S. 702, 718-723 (1978) (Stevens, J.). There, too, we explained that "[r]etro-active liability could be devastating" and that "[t]he harm would fall in large part on innocent third parties." Id., at 722-723.
Those same considerations exist here. Retroactive application of rulings that invalidate state tax laws have the potential for producing "disruptive consequences for the State[s] and [their] citizens. A refund, if required by state or federal law, could deplete the state treasur[ies], thus threatening the State[s'] current operations and future plans." American Trucking Assns., Inc. v. Smith, 496 U. S., at 182 (plurality opinion). Retroactive application of Davis is no exception. "The fiscal implications of Davis for the
129
Page: Index Previous 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 NextLast modified: October 4, 2007