New York Court of Appeals
In the Matter of the People of the State of New York, by Eliot Spitzer, as Attorney General v. Applied Card Systems…
June 26, 200811 N.Y.3d 105
Summary
The New York Court of Appeals affirmed the Appellate Division, holding that the federal Truth‑in‑Lending Act does not preempt the Attorney General’s claims under the Executive Law and Consumer Protection Act, and that res judicata bars the Attorney General from seeking restitution for claims already resolved in a prior nationwide class‑action settlement. The Court based the preemption holding on a textual construction of 15 U.S.C. § 1610(e) and the presumption against preemption, and applied New York res judicata principles to find privity with the class‑action members. Justice Read dissented, arguing that the statutory language and regulatory interpretation require a broader preemption of the state claims.