Otoe-Missouria Tribe v. New York State Dept. of Financial Services

Second Circuit Affirms Otoe-Missouria Tribe v. New York Dept. of Financial Regulation

October 1, 2014Matthew L.M. Fletcher

Here is the opinion:

From the court’s syllabus:

Plaintiffs‐appellants (“plaintiffs”) appeal from the denial of a preliminary injunction by the United States District Court for the Southern District of New York (Richard J. Sullivan, Judge). Plaintiffs are two Native American tribes, tribal regulatory agencies, and companies owned by the tribes that offered high interest, short‐term loans over the internet. The interest rates on the loans exceeded caps imposed by New York State law. When the New York State Department of Financial Services sought to bar out‐of‐state lenders from extending such loans to New York residents, the plaintiffs sued for a preliminary injunction, claiming that New York’s ban violated the Indian Commerce Clause. But plaintiffs bore the burden of proving that the challenged transactions fell within their regulatory domain, and the District Court held that they failed to establish a sufficient factual basis to find in their favor. Because this conclusion was a reasonable one, the District Court did not abuse its discretion in denying the injunction.

Briefs here. Lower court materials here.

Complete Second Circuit Briefing in Otoe-Missouria Tribe v. New York Dept. of Financial Regulation

November 15, 2013Matthew L.M. Fletcher1 Comment

Here:

Otoe-Missouria Opening Brief

NY Brief

Center for Responsible Lending Amicus Brief

Consumer Financial Protection Bureau Amicus Brief

Nine Advocacy Organizations Amicus Brief

Otoe-Missouria Reply Brief

Lower court materials here.

Opening Second Circuit Brief in Otoe-Missouria v. NY Dept. of Financial Regulation

October 31, 2013Matthew L.M. Fletcher

Here:

Otoe-Missouria Opening Brief

Lower court materials here.

Federal Court Denies Injunction in Otoe-Missouria Tribe v. New York State Dept. of Financial Services

October 1, 2013Matthew L.M. Fletcher3 Comments

Here:

NY Order Denying PI Relief

Materials are here.

NYTs Coverage of Tribal Payday Lender Suit against New York

September 11, 2013Matthew L.M. Fletcher

Here.

An excerpt:

Online lending has become a popular venture for Indian tribes over the last several years as states have cracked down on payday loans. The tribes say that in many cases, e-commerce activities have become a vital source of revenue, especially because their remote locations inhibit their ability to operate casinos. For the Otoe Missouria Tribe, lending revenue accounts for roughly half of the tribe’s nonfederal budget, according to a court filing.

“Every Indian tribe worth its salt has to provide health care, public safety, education and a panoply of essential services to its members,” said Matthew Fletcher, a law professor at Michigan State University and an authority on Indian law. “These tribes must reach off the reservation to conduct business because there is a desperate need for revenue.”