People of the State of New York, by Andrew M. Cuomo, Attorney General of the State of New York v. First American Corporation et al.

Summary

The New York Court of Appeals held that federal law did not preempt the New York Attorney General’s claims against First American Corporation and eAppraiseIT concerning allegedly fraudulent and deceptive real estate appraisal practices. The court concluded that FIRREA contemplated cooperative federal and state regulation of appraisal standards and that the state-law claims only incidentally affected federal savings-association lending operations. The court also held that the Attorney General adequately pleaded a claim under General Business Law § 349 and had standing to pursue it.

Holdings

1. HOLA, FIRREA, and related federal regulations did not preempt the Attorney General from pursuing common-law and statutory New York claims against First American and eAppraiseIT for allegedly deceptive appraisal practices and violations of appraisal-independence standards.
2. The Attorney General adequately pleaded a cause of action under General Business Law § 349.
3. The Attorney General had standing to pursue the General Business Law § 349 claim.

Questions Presented

1. Whether HOLA, FIRREA, and related federal regulations field-preempted the Attorney General's New York statutory and common-law claims challenging allegedly fraudulent and nonindependent real estate appraisal practices.
2. Whether the Attorney General adequately pleaded a cause of action under General Business Law § 349.
3. Whether the Attorney General had standing to pursue the General Business Law § 349 claim.

Disposition

affirmed