NY-Led Coalition's Amicus Brief in CFPB Case Urges SCOTUS to Preserve State Powers
New York and the other states support the arguments of court-appointed amici but also spend much of the brief strongly arguing for preserving the powers given to the states under Title X of the Dodd-Frank Act.
January 24, 2020 at 04:41 PM
4 minute read
State Attorney General Letitia James is leading a 24-state coalition that has filed an amicus brief to the U.S. Supreme Court arguing for preserving the Consumer Financial Protection Bureau's existence and, perhaps as importantly, argues the coalition, keeping in place state powers under the Dodd-Frank Act even if the protection bureau is found to be unconstitutional.
In a 33-page amicus brief lodged with the Supreme Court and signed by James and state Solicitor General Barbara Underwood, the states coalition weighs in on a years-long legal fight that is pending at the high court: Seila Law, a California law firm facing an investigation by the protection bureau, has argued that the bureau itself is unconstitutional, as created and structured under the Dodd-Frank Act, because the for-cause-only termination of its director violates the Constitution's separation of powers clause while also impinging on the U.S. president's executive power, according to James' news release about the amicus filing and court documents.
In their brief, New York state and the others joining it say they support the arguments of court-appointed amici for the constitutionality of the for-cause agency director removal provision. But the states coalition also emphasizes and spends much of its brief strongly arguing for preserving the powers given to the states under Title X of the Dodd-Frank Act, even if the court were to find that the for-cause removal clause is constitutionally invalid.
James and the other state attorneys general who signed onto the brief frame as a question presented whether the statute creating the protection bureau can be severed from the rest of the Dodd-Frank Wall Street Reform and Consumer Protection Act, and they argue that such severance should occur.
"Severability is supported not only by the the Dodd-Frank Act's express severability clause, but also by Congress' strongly expressed intent to create a more robust consumer-protection regime to avert another financial crisis," the coalition's brief states. It adds, "There is no indication that Congress would have abandoned this important policy objective if it had understood that the CFPB's Director would be removable at will."
In a news release issued by James' office Thursday, shortly after the coalition's amicus brief was filed, James said, "Following the Great Recession, the Consumer Financial Protection Bureau was created as an independent enforcer of consumer protection laws to ensure that consumers could never again be so egregiously defrauded, deceived, or misled by private companies. Opponents are now asking the Supreme Court to undo years of financial and consumer protections that have saved Americans hundreds of millions of dollars and remedied countless abusive and fraudulent practices."
Then the New York attorney general added, "Our coalition will continue fighting to ensure the existence of the CFPB and, more importantly, the continuation of the protections that help the states ensure the financial protection of the American people."
The news release also explains that the amicus brief, among other things, "highlights the various provisions of Title X that are unrelated to the CFPB, but nonetheless give the states powerful tools to combat fraud and abusive practices."
"These provisions provide important support to the states' efforts to protect consumers and are independent of the CFPB," the release also says, adding, "The brief concludes by arguing that these new state powers should survive even if the for-cause removal provision or the CFPB itself is unconstitutional."
An email to Seila Law, the California law firm plaintiff in Seila Law v. CFPB, seeking comment on the states coalition's brief was not returned.
The Supreme Court is set to hear argument in the case in March.
This content has been archived. It is available through our partners, LexisNexis® and Bloomberg Law.
To view this content, please continue to their sites.
Not a Lexis Subscriber?
Subscribe Now
Not a Bloomberg Law Subscriber?
Subscribe Now
NOT FOR REPRINT
© 2024 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.
You Might Like
View AllCourt System Names New Administrative Judges for New York City Courts in Leadership Shakeup
3 minute readRetired Judge Susan Cacace Elected Westchester DA in Win for Democrats
In Eric Adams Case and Other Corruption Matters, Prosecutors Seem Bent on Pushing Boundaries of Their Already Awesome Power
5 minute readTrending Stories
- 1Remembering Am Law 100 Firm Founder and 'Force of Nature' Stephen Cozen
- 2Attorneys 'On the Move': Structured Finance Attorney Joins Hunton Andrews Kurth; Foley Adds IP Partner
- 3Suspended NY Judge Who Threatened to Shoot Black Party Crashers Says She Won't Fight Removal
- 4Kelly Hart Secures $27M Trade Secrets Misappropriation Final Judgment in Fort Worth Trial
- 5How Legal Research And Analytics Changed in 2024
Who Got The Work
Michael G. Bongiorno, Andrew Scott Dulberg and Elizabeth E. Driscoll from Wilmer Cutler Pickering Hale and Dorr have stepped in to represent Symbotic Inc., an A.I.-enabled technology platform that focuses on increasing supply chain efficiency, and other defendants in a pending shareholder derivative lawsuit. The case, filed Oct. 2 in Massachusetts District Court by the Brown Law Firm on behalf of Stephen Austen, accuses certain officers and directors of misleading investors in regard to Symbotic's potential for margin growth by failing to disclose that the company was not equipped to timely deploy its systems or manage expenses through project delays. The case, assigned to U.S. District Judge Nathaniel M. Gorton, is 1:24-cv-12522, Austen v. Cohen et al.
Who Got The Work
Edmund Polubinski and Marie Killmond of Davis Polk & Wardwell have entered appearances for data platform software development company MongoDB and other defendants in a pending shareholder derivative lawsuit. The action, filed Oct. 7 in New York Southern District Court by the Brown Law Firm, accuses the company's directors and/or officers of falsely expressing confidence in the company’s restructuring of its sales incentive plan and downplaying the severity of decreases in its upfront commitments. The case is 1:24-cv-07594, Roy v. Ittycheria et al.
Who Got The Work
Amy O. Bruchs and Kurt F. Ellison of Michael Best & Friedrich have entered appearances for Epic Systems Corp. in a pending employment discrimination lawsuit. The suit was filed Sept. 7 in Wisconsin Western District Court by Levine Eisberner LLC and Siri & Glimstad on behalf of a project manager who claims that he was wrongfully terminated after applying for a religious exemption to the defendant's COVID-19 vaccine mandate. The case, assigned to U.S. Magistrate Judge Anita Marie Boor, is 3:24-cv-00630, Secker, Nathan v. Epic Systems Corporation.
Who Got The Work
David X. Sullivan, Thomas J. Finn and Gregory A. Hall from McCarter & English have entered appearances for Sunrun Installation Services in a pending civil rights lawsuit. The complaint was filed Sept. 4 in Connecticut District Court by attorney Robert M. Berke on behalf of former employee George Edward Steins, who was arrested and charged with employing an unregistered home improvement salesperson. The complaint alleges that had Sunrun informed the Connecticut Department of Consumer Protection that the plaintiff's employment had ended in 2017 and that he no longer held Sunrun's home improvement contractor license, he would not have been hit with charges, which were dismissed in May 2024. The case, assigned to U.S. District Judge Jeffrey A. Meyer, is 3:24-cv-01423, Steins v. Sunrun, Inc. et al.
Who Got The Work
Greenberg Traurig shareholder Joshua L. Raskin has entered an appearance for boohoo.com UK Ltd. in a pending patent infringement lawsuit. The suit, filed Sept. 3 in Texas Eastern District Court by Rozier Hardt McDonough on behalf of Alto Dynamics, asserts five patents related to an online shopping platform. The case, assigned to U.S. District Judge Rodney Gilstrap, is 2:24-cv-00719, Alto Dynamics, LLC v. boohoo.com UK Limited.
Featured Firms
Law Offices of Gary Martin Hays & Associates, P.C.
(470) 294-1674
Law Offices of Mark E. Salomone
(857) 444-6468
Smith & Hassler
(713) 739-1250