City of New York v. Smokes-Spirits.Com, Inc.

Summary

The New York Court of Appeals answered two certified questions from the Second Circuit in the negative. It held that New York City lacked standing under General Business Law § 349(h) to recover lost cigarette-tax revenue because its alleged injury was derivative of consumer injuries. The court also held that Public Health Law § 1399-ll did not authorize the City's common-law public nuisance claims based primarily on alleged cigarette-tax evasion.

Holdings

1. The City lacks standing to bring its General Business Law § 349(h) claim because its alleged lost tax revenue is an indirect or derivative injury arising from injuries allegedly suffered by consumers.
2. The City may not assert a common-law public nuisance claim predicated on Public Health Law § 1399-ll for conduct primarily involving alleged cigarette-tax evasion.

Questions Presented

1. Whether the City has standing to assert a claim under General Business Law § 349(h) for lost cigarette-tax revenue allegedly resulting from deceptive Internet cigarette sales.
2. Whether the City may assert a common-law public nuisance claim predicated on Public Health Law § 1399-ll where the alleged injury primarily involves cigarette-tax evasion.

Disposition

other