Barnett Bank of Marion County, N.A. v. Bill Nelson, Florida Insurance Commissioner
United States Supreme Court
517 U.S. 25 (1996)
Relevant factsFree
A 1916 federal statute let banks sell insurance in small towns, while a 1974 Florida statute banned banks from selling insurance altogether. When Barnett Bank (plaintiff) bought a Florida insurance agency and began selling insurance under the federal statute's authorization, Florida's Insurance Commissioner (defendant) ordered it to stop under the state ban. Barnett Bank sued for declaratory and injunctive relief; the district court and court of appeals both ruled for the Commissioner.
IssueFree
Whether a federal statute preempts a state statute even when the two statutes are not in direct conflict, if the state statute acts as an impediment to the purpose of the federal statute.