Attorney General Patrick Morrisey this week joined a multi-state lawsuit challenging a federal bankruptcy law, and has filed a "friend of the court" brief in a U.S. Supreme Court case challenging the constitutionality of a New York gun law.
Morrisey announced Thursday that West Virginia would join seven other states in a lawsuit challenging the Dodd-Frank Act, signed into law by President Barack Obama in 2010.
A section of that law allows the federal government to decide, with minimal judicial review, which of a bankrupt company's creditors to bail out.
The provision allows the government to decide how much money investors will receive when a company fails. Although two states might have invested the same amount of money, one could receive a payout while the other might not.
"The Orderly Liquidation Authority allows unelected Washington bureaucrats to pick winners and losers among affected creditors, entirely abandoning the rule of law," Morrisey said in a statement.
"The Orderly Liquidation Authority disadvantages the small community banks that compose the overwhelming majority of banks in West Virginia," he said. "The survival of those community banks is critical to the ability of West Virginians to borrow money to buy a home, pay for college or start a business."
Morrisey said joining the lawsuit also is important for the state because it holds investments in many institutions that could be covered by the Orderly Liquidation Authority.
Also Thursday, Morrisey announced West Virginia would join 19 other states to file a "friend of the court" brief in a U.S. Supreme Court case that challenges the constitutionality of a New York law that requires residents to show a particular need before they can obtain a concealed weapons permit.