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Law exposes gun industry to civil lawsuits for violence

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Court says New York not preempted by 2005 federal law

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Gun industry exploring legal options

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New York attorney general hails 'massive victory'

(Recasts first paragraph; adds statements from trade group and

New York attorney general; details of law and some of its

supporters and opponents, paragraphs 1, 4, 8-13)

By Jonathan Stempel

NEW YORK, July 10 (Reuters) - A federal appeals court on

Thursday upheld a New York public nuisance law exposing the gun

industry to possible civil lawsuits when people use their

products in shootings and other crimes.

The 2nd U.S. Circuit Court of Appeals in Manhattan rejected

a challenge to the law by the National Shooting Sports

Foundation trade group and 14 members including Beretta, Glock,

Sig Sauer, Smith & Wesson and Sturm, Ruger ( RGR ).

Signed by Democratic Governor Andrew Cuomo in July 2021, the

law lets New York, local officials and the public sue

manufacturers, wholesalers and dealers for endangering people's

safety and health through sales of firearms and ammunition.

The law requires the gun industry to use reasonable controls

to make sure its products do not fall into the wrong hands.

Opponents argued that the law was unconstitutional on its face.

In a 3-0 decision, Circuit Judge Eunice Lee said New York's

law was not preempted by the Protection of Lawful Commerce in

Arms Act, a 2005 federal law shielding the firearms industry

from civil liability when its products are used in crimes.

Lee said Congress intended to preserve "at least some causes

of action" for knowing violations of state firearms sales and

marketing laws, and New York's law was not vague about how the

gun industry could comply.

She also said the law did not violate the U.S.

Constitution's dormant Commerce Clause by discriminating against

interstate commerce, citing the law's public health and safety

goals and absence of specifically identified economic burdens.

SCOURGE OF GUN VIOLENCE

Lawrence Keane, general counsel of the NSSF trade group,

said it is disappointed and exploring its legal options.

The 2005 federal law "codifies common law and

common-sense principles to prevent baseless litigation from

bankrupting an entire industry, especially one that provides the

necessary means for the lawful exercise of the Second

Amendment," he said.

New York Attorney General Letitia James, a Democrat

whose office defended the state law, welcomed the decision.

"This decision is a massive victory for public safety and

the rule of law and will help us continue to fight the scourge

of gun violence to keep our communities safe," James said.

The gun industry's appeal was supported in court papers

by 20 Republican state attorneys general and the National Rifle

Association.

New York was supported by Democratic attorneys general

of 17 states and Washington, D.C., plus gun control advocates

such as the Giffords Law Center to Prevent Gun Violence.

JUDGE GRUDGINGLY CONCURS

Circuit Judges Raymond Lohier and Dennis Jacobs joined

Lee's decision. Lee was appointed to the bench by Democratic

President Joe Biden, Lohier by Democratic President Barack

Obama, and Jacobs by Republican President George H.W. Bush.

In a grudging concurrence, Jacobs said "there is every

indication" New York intended to contravene federal law, but he

was "constrained to agree" the state law could be applied

legally.

He nonetheless said lawmakers "contrived a broad public

nuisance statute that applies solely to gun industry members and

is enforceable by a mob of public and private actors."

"The intent of Congress when it closes a door is not for

states to thus jimmy a window," Jacobs added.

Thursday's decision upheld a May 2022 ruling by U.S.

District Judge Mae D'Agostino in Albany, New York.

The case is National Shooting Sports Foundation Inc et al v

James, 2nd U.S. Circuit Court of Appeals, No. 22-1374.