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Sunrise Check Cashing v. Town of Hempstead

986 N.E.2d 898 (2013)

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Sunrise Check Cashing v. Town of Hempstead

New York Court of Appeals
986 N.E.2d 898 (2013)

  • Written by Tanya Munson, JD

Facts

The Town of Hempstead (defendant) adopted the Building Zone Ordinance (the ordinance), which contained the provision that check-cashing establishments were prohibited anywhere other than the light-manufacturing or industrial districts (the provision). The purpose of the provision, as laid out in one memorandum from a deputy town attorney, was to dissuade young and lower-income individuals from relying on cash and encourage them to open accounts at reputable banks instead. The memorandum stated that check-cashing establishments kept the neighborhood down, exploited the poor and African Americans, and were akin to pawnshops and strip clubs. Several check-cashing establishments (plaintiffs) brought suit against the town seeking a declaratory judgment that the provision was invalid and an injunction against its enforcement.

Rule of Law

Issue

Holding and Reasoning (Smith, J.)

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