It’s not over: DFS officially files appeal in title insurance case

Agency says original court’s ruling “rested on multiple errors of law”

TRD New York /
Aug.August 06, 2018 06:05 PM

A courtroom and Maria Vullo (Credit: DFS)

The Department of Financial Services has officially appealed the New York State Supreme Court ruling that annulled its strict anti-marketing regulations on title insurance companies.

DFS filed its case with the Appellate Division of the New York State Supreme Court on Monday, arguing that Judge Eileen Rakower’s decision to overturn its regulations in July “rested on multiple errors of law.”

The state wrote that Rakower’s ruling misread New York’s ban on inducements to conclude that it only prohibits title insurers from giving real estate professionals economic benefits like rebates and commissions rather than anything of value.

This led the court “to the absurd conclusion that DFS has no authority to prevent title insurers and agents from giving real estate professionals plainly valuable benefits such as lavish gifts, meals, and entertainment,” the appeal reads.

DFS also argues that the court ignored the administrative record it had compiled to support its new restrictions and gave “no deference whatsoever” to the agency “despite DFS’s expertise in this complex field.” It maintains that the appellate court should reinstate its rules.

The New York State Land Title Association, Great American Title Agency and Venture Title Agency filed suit against DFS over its new title insurance regulations in February. Their attorney, Mylan Denerstein, did not immediately respond to a request for comment about the appeal.

Rakower sided with the title insurance industry in her ruling on the regulations’ legitimacy, writing that New York’s law was not meant to ban the companies from ordinary entertainment and marketing expenses. DFS Superintendent Maria Vullo said the agency planned to appeal her decision almost immediately after.


Related Articles

arrow_forward_ios
Columbia Property Trust CEO Nelson Mills and 245-249 West 17th Street (Photos via Columbia Property Trust; StreetEasy)

Columbia Property Trust collects 98% of its rent in Q3

Columbia Property Trust collects 98% of its rent in Q3
The Factory building at 30-30 47th Avenue with Square Mile Capital’s Craig Solomon and Invesco CEO Marty Flanagan (Photos via The Factory; Square Mile; Invesco)

Here’s what tenants are paying at the Factory in Long Island City

Here’s what tenants are paying at the Factory in Long Island City
Bob Sulentic (Getty, iStock)

CBRE income falls nearly 10%

CBRE income falls nearly 10%
From left: Paramount CEO Albert Behler, 1301 6th Avenue, 712 5th Avenue, 31 West 52nd Street (Getty; Google Maps)

Paramount Group back at work, but tenants waiting until 2021

Paramount Group back at work, but tenants waiting until 2021
Tony Malkin (Getty, iStock)

Empire State Realty Trust reports second consecutive quarterly loss

Empire State Realty Trust reports second consecutive quarterly loss
Michael Shvo and the Transamerica Building in San Francisco and  (Unsplash)

Shvo, Deutsche Finance close on Transamerica Pyramid for $650M

Shvo, Deutsche Finance close on Transamerica Pyramid for $650M
Amazon CEO Jeff Bezos with (top to bottom) 5 Warehouse Lane in Elmsford in Westchester County, 2300 Linden Boulevard in Brooklyn and 1502 Bassett Avenue in the Bronx (Getty; Google Maps)

Amazon inks three warehouse deals for delivery stations

Amazon inks three warehouse deals for delivery stations
New foreclosure filings are rising again as limits are lifted (iStock)

Foreclosure filings ramp up, especially in minority neighborhoods

Foreclosure filings ramp up, especially in minority neighborhoods
arrow_forward_ios

The Deal's newsletters give you the latest scoops, fresh headlines, marketing data, and things to know within the industry.

Loading...