Defining The Scope Of Federal Preemption: State Farm, Exclusive Agents, And Other Emerging Issues

摘要

The cases discussed here illustrate that, although federal law broadly preempts state laws for national banks and federal savings associations, third-party agents of these institutions cannot assume that they will enjoy the same broad benefits of preemption. When determining whether federal law preempts a state law claim against an agent of a federally chartered institution, a court will examine the specific relationship between the bank and the third party and consider factors such as the level of institutional control, which entity receives the financial benefit, and the federal powers being exercised by the federally chartered bank. Banks are also likely to face more challenges under general state laws such as unfair and deceptive trade practice laws, as courts define the limits of federal preemption analysis in regard to state law claims.