• New York's Highest Court Decides Important Martin Act Preemption Question
  • January 27, 2012 | Authors: Robert W. Gaffey; Harold K. Gordon; Jayant W. Tambe
  • Law Firm: Jones Day - New York Office
  • At the end of 2011, the New York Court of Appeals handed down Assured Guaranty (UK) Ltd. v. J.P. Morgan Investment Management, Inc., an important decision that could have a broad impact on securities litigation in New York state and federal courts. The case presented New York’s highest court with an opportunity to resolve a significant and unsettled issue in New York securities law—whether the Martin Act, New York’s securities statute, preempts private common-law tort claims arising from securities transactions. On December 20, 2011, the Court of Appeals held that the Martin Act does not preempt common-law claims, contrary to numerous federal and state court decisions that had held such claims were precluded.