The ACLU won an important victory in federal court in New York today.

U.S. District Judge Victor Marreo ruled in favor of the American Civil Liberties Union, which challenged the power the FBI has to demand confidential financial records from companies as part of terrorism investigations.

The ACLU sued the Department of Justice, arguing that part of the Patriot legislation violated the constitution because it authorizes the FBI to force disclosure of sensitive information without adequate safeguards. The judge agreed, stating that the provision "effectively bars or substantially deters any judicial challenge." Under the provision, the FBI did not have to show a judge a compelling need for the records and it did not have to specify any process that would allow a recipient to fight the demand for confidential information.

[hat tip to TL reader Mike S.]

Update: the ACLU's statement on the decision is here.