Appeal Likely of NY LLC loophole Case Dismissal

It’s “very likely” that there will be an appeal of a court ruling on Mar. 16th that dismissed a case seeking to do away with the so-called “LLC loophole” in New York Election law.

According to Lawrence Norden, Deputy Director of the Brennan Center for Justice’s Democracy Program. The Brennan Center, which is part of New York University Law School, is the lead plaintiff in the case. “We still have to discuss it with our all clients, but we believe there is a good chance on appeal,” Norden said via phone.

Norden said that the Brennan Center and a law firm that’s also a party in the case, Emery, Celli and Brinckerhoff, are “raring to go.” Other supporting parties seeking to remove the LLC loophole include SUNY New Paltz Prof. Gerald Benjamin, and three New York City Democrats.

Those three lawmakers released a statement Thursday, promising to continue to pursue legal and legislative avenues.

“The LLC Loophole has repeatedly been at the center of some of Albany’s biggest scandals. It’s clear the Loophole contravenes New York’s campaign finance laws. And it’s clear it was wrongly created by the Board of Elections’ 1996 ruling,” said State Sens. Daniel Squadron and Liz Krueger and Assemblyman Brian Kavanagh.

It continues to be critical that closing the Loophole be a central part of the Albany agenda.

The justice who offered a sweeping rebuke of the LLC case yesterday, Lisa Fisher, is a recently elected Republican in Greene County, and one of the parties defending the LLC loophole was the State Republican Party.

She says any change to the LLC Loophole should be done by the Legislature.

The appeal would go to the Appellate Division of the Third Judicial District.

Gov. Andrew Cuomo and Assembly Democrats support closure of the LLC loophole, which allows huge campaign giving by real estate developers that control many limited liability companies, and others entities with multiple locations. By creating a LLC for each building they own, they increase their campaign donations, where other businesses can only contribute $5,000.

Senate Republicans remain staunchly opposed to close the loophole, which increases their fund raising value.











NYC Wins When Everyone Can Vote! Michael H. Drucker