SW Legal studies in Business

No Stay of Pending Regulation Unless Complaining Party May Win on Appeal
Description

Federal court held that it would not issue a temporary injunction against enforcement of a city ordinance requiring nutrition information to be put on restaurant menus pending an appeal of the legality of the ordinance.

Topic Administrative Law
Key Words

Stay of Enforcement; Likely Merits; Irreparable Injury

C A S E   S U M M A R Y
Facts

New York City imposed a new regulation on restaurants in the City that requires them to post the caloric value of all food items on their menus. The requirement was imposed under the City’s Health Code as part of an effort to combat obesity. The New York State Restaurant Association (NYSRA) sued the City in federal court to challenge the regulation, claiming it was preempted by the federal Nutrition Labeling and Education Act. The NYSRA moved for a stay of enforcement (an injunction) of the regulation pending its appeal of the City regulation.

Decision

Motion denied. A stay of enforcement of the City regulation was not warranted pending an appeal of the validity of the regulation. Even though some NYSRA members would suffer some injury in the event the regulation was found to be in violation of federal law, because they would have borne the cost of compliance, the NYSRA did not show a likelihood or substantial possibility of success on its claim that the regulation was in conflict with the Nutrition Labeling and Education Act. The City has a strong public interest in enforcing its regulatory scheme to address obesity, so there will be no temporary injunction against the regulation pending an appeal of its validity.

Citation

New York State Restaurant Assn. v. New York City Board of Health, ---F.Supp.2d--- (2008 WL 1777479, S.D.N.Y., 2008)

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