Jacoby & Meyers, LLP v. Presiding Justices of the First, Second, Third & Fourth Departments
This putative class action challenges New York laws prohibiting non-lawyer equity ownership in law firms, alleging violations of the First and Fourteenth Amendments and the dormant Commerce Clause. The case was remanded from the Court of Appeals after an initial dismissal for lack of standing. Plaintiffs Jacoby & Meyers, LLP and Jacoby & Meyers USA II PLLC argued these laws impede their ability to raise capital and expand legal services. However, the District Court concluded that the plaintiffs' constitutional challenges were without merit. The court found that the proposed activity constituted commercial conduct, not protected speech or association, and that the state laws were rationally related to New York's legitimate interest in regulating the legal profession. Consequently, the defendants' motion to dismiss the third amended complaint was granted.