ASSURED GUAR. v. J.P. MORGAN

No. 227

18 N.Y.3d 341 (2011)

2011 NY Slip Op 9162

ASSURED GUARANTY (UK) LTD., in the Right of Itself and of ORKNEY RE II PLC, Respondent, v. J.P. MORGAN INVESTMENT MANAGEMENT INC., Appellant.

Court of Appeals of New York.

Decided December 20, 2011.


Attorney(s) appearing for the Case

Paul, Weiss, Rifkind, Wharton & Garrison LLP, New York City ( Walter Rieman , Richard A. Rosen , John F. Baughman , Farrah R. Berse , and Jennifer K. Vakiener , of counsel), for appellant.

Wollmuth Maher & Deutsch LLP, New York City ( William A. Maher , Vincent T. Chang , Randall R. Rainer , Michael P. Burke , and John E. Lazar , of counsel), for respondent.

Eric T. Schneiderman , Attorney General, New York City ( Richard Dearing , Barbara D. Underwood , and Alison J. Nathan , of counsel), for Attorney General of the State of New York, amicus curiae.

Lisa A. Catalano , Securities Arbitration Clinic, St. John's University School of Law, Jamaica and Law Offices of Timothy J. O'Connor, Albany ( Timothy J. O'Connor , of counsel), for Public Investors Arbitration Bar Association, amicus curiae.

William A. Jacobson , Cornell Securites Law Clinic, Ithaca, for Cornell Securities Law Clinic, amicus curiae.

Milberg LLP, New York City ( Robert A. Wallner , and Jennifer L. Young , of counsel), for New York State AFL-CIO and others, amici curiae.

Wilmer Cutler Pickering Hale and Dorr, LLP, New York City ( Lori A. Martin , of counsel), and Wilmer Cutler Pickering Hale and Dorr LLP, Washington, D.C. ( Paul R.Q. Wolfson , and Daniel S. Volchok , of counsel), for Securities Industry and Financial Markets Association and others, amici curiae.

Lowey Dannenberg Cohen & Hart, P.C., White Plains ( Barbara J. Hart , Thomas M. Skelton , and Jeanne D.'Esposito , of counsel), for New York State Common Retirement Fund and others, amici curiae.

Chief Judge LIPPMAN and Judges CIPARICK, READ, PIGOTT and JONES concur; Judge SMITH taking no part.


OPINION OF THE COURT

GRAFFEO, J.

At issue on this appeal is whether the Martin Act (General Business Law art 23-A) preempts plaintiff's common-law causes of action for breach of fiduciary duty and gross negligence. For the reasons that follow, we conclude that plaintiff's common-law claims are not preempted.

Plaintiff Assured Guaranty (UK) Ltd. commenced this action against defendant J.P. Morgan Investment...

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