Opinion ID: 773254
Heading Depth: 3
Heading Rank: 2

Heading: Martin Act

Text: 53 Defendants argue for the first time on appeal that the Martin Act, N.Y. Gen. Bus. Law Art. 23-A, §§ 352 et seq., New York's blue sky law governing securities fraud, preempts common law negligent misrepresentation claims relating to the sale of securities. We generally will not address an issue first raised on appeal except to prevent obvious injustice or, in rare cases, when the issue is suitable for decision on the record, without additional factfinding. See Singleton v. Wulff, 428 U.S. 106, 120-21 (1976); Greene v. United States, 13 F.3d 577, 586 (2d Cir. 1994). 54 We do not reach the Martin Act question. The New York Court of Appeals has not yet addressed this issue, and the lower court cases cited by defendant do not explore the issue with the level of depth that would justify a ruling by us in the first instance. See Rego Park Gardens Owners, Inc. v. Rego Park Gardens Assocs., 191 A.D.2d 621, 622 (2d Dep't 1993) (relying on CPC Int'l Inc. v. McKesson Corp., 70 N.Y.2d 268, 276-77 (1987), which held that there is no implied private right of action under the Martin Act); Horn v. 440 E. 57th Co., 151 A.D.2d 112, 120 (1st Dep't 1989) (same). We are not immediately persuaded that the Court of Appeals would follow their lead, nor have the parties referred us to any apposite federal precedent. Accordingly, since no obvious injustice would befall the defendants, we leave the resolution of this issue in the first instance to the district court. Greene, 13 F.3d at 586.