The U.S. Supreme Court today refused to grant review of a lower court decision in favor of Ballard Spahr client Midwest Title Loans (Mills v. Midwest Title Loans, Inc., No. 09-1325). The denial is critical in light of the number of state regulators striving to expand the reach of their consumer protection and lending laws beyond their own borders.

In January 2010, the U.S. Court of Appeals for the Seventh Circuit unanimously affirmed a district court ruling that the Commerce Clause of the U.S. Constitution precludes Indiana from applying its Uniform Consumer Credit Code to loans made in person in Illinois to Indiana residents. 593 F.3d 660. Click here to read our February 2010 legal alert on the case; click here for our April 2009 legal alert.

Numerous states and consumer groups filed amici curiae briefs in support of the petition for a writ of certiorari in the Supreme Court, filed by the Indiana Department of Financial Institutions.

The Seventh Circuit held that legislation seeking to regulate interstate commerce occurring wholly outside the boundaries of the regulating state constitutes a per se violation of the Commerce Clause. According to the Court of Appeals, "the projection of one state regulatory regime into the jurisdiction of another State" is unconstitutional "however well intentioned and genuinely beneficial to the state imposing it."

Ballard Spahr's Consumer Financial Services Group is nationally recognized for its skill in consumer financial services litigation, its pioneering work in pre-dispute arbitration programs, its guidance in structuring and documentation of new consumer financial services products, and its experience with the full range of federal and state consumer credit laws throughout the country. For further information, please contact group Chair Alan S. Kaplinsky, 215.864.8544 or; Burt M. Rublin, 215.864.8116 or; or Vice Chair Jeremy T. Rosenblum, 215.864.8505 or

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This alert is a periodic publication of Ballard Spahr LLP and is intended to notify recipients of new developments in the law. It should not be construed as legal advice or legal opinion on any specific facts or circumstances. The contents are intended for general informational purposes only, and you are urged to consult your own attorney concerning your situation and specific legal questions you have.