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Re:      New Jersey’s Stored Value Card legislation has been temporarily enjoined

            (AMERICAN EXPRESS, et al v. SIDAMON-ERISTOFF, et al)

Well, what did New Jersey expect? I mean, really? The state – in the Judge’s words – attempted to “usurp” the claim of a retailer’s state of domicile. This attempt was, of course, in blatant violation of the TEXAS v. NEW JERSEY rules. The same rules the rest of us are forced to live by!

Rest assured, New Jersey has benefitted from those same priority rules. How would they have felt in Pennsylvania had tried the “deemed address” maneuver?

If New Jersey is ultimately successful, could you imagine the “copycat” legislation that will ensue?  Retailers would have a heck of a time trying to determine which state it was obligated to report to and when! The Judge foresaw that possibility too. My favorite line in her 92 Page Opinion is on page 80:

“It [the proposed priority rule] would permit New Jersey to fabricate an interest where it otherwise does not have one…”

What a slap in the face! New Jersey, you have been SERVED!

Regards,

Brooke