Consumers Union of U.S., Inc., Appellants-Respondents v. State of New York, Respondents-Appellants…

Summary

The New York Court of Appeals affirmed the Appellate Division’s order dismissing all of the plaintiffs’ claims and upheld Chapter 1 of the 2002 Laws, which authorizes Empire Blue Cross and Blue Shield’s conversion to a for‑profit corporation and supersedes fiduciary duties and other statutory requirements. The court also held that Chapter 1 does not violate the State Constitution’s Exclusive Privileges Clause. Two dissenting opinions argued that the statute effects an unconstitutional taking and improperly eliminates fiduciary duties.