CONSUMERS UNION v. STATE


5 N.Y.3d 327 (2005)

840 N.E.2d 68

806 N.Y.S.2d 99

CONSUMERS UNION OF U.S., INC., et al., Appellants-Respondents, v. STATE OF NEW YORK et al., Respondents-Appellants, and THE CHARITABLE ASSET FOUNDATION, Appellant, et al., Respondents.

Court of Appeals of the State of New York.

Decided June 20, 2005.


Attorney(s) appearing for the Case

Law Office of Mark Scherzer, New York City (Mark Scherzer and A. Christopher Wieber of counsel), for appellants-respondents.

Eliot Spitzer, Attorney General, New York City (Robert H. Easton and Caitlin J. Halligan of counsel), for State of New York and others, respondents-appellants.

Weil, Gotshal & Manges LLP, New York City (Steven Alan Reiss, Janet L. Horn and Adam K. Grant of counsel), and Hinman Straub P.C., Albany (Bartley J. Costello, III and Kimberly C. Lawrence of counsel), for Empire HealthChoice, Inc., respondent-appellant.

Proskauer Rose LLP, New York City (Steven E. Obus and Edward S. Kornreich of counsel), for appellant.

Before: Judges CIPARICK, ROSENBLATT and GRAFFEO concur with Judge READ; Judge G.B. SMITH dissents in part in a separate opinion; Judge R.S. SMITH dissents in part in another opinion in which Judge G.B. SMITH concurs; Chief Judge KAYE taking no part.


OPINION OF THE COURT

READ, J.

The issue in these appeals is whether plaintiffs have stated a viable cause of action to challenge the legislation authorizing the conversion of defendant Empire HealthChoice, Inc., doing business as Empire Blue Cross and Blue Shield (Empire) from a not-for-profit to a for-profit corporation, and directing that certain of Empire's assets be used for various public health and charitable purposes. For the reasons that follow,...

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