Broughman v. Carver

• Decision Date: 15 November 2010
• Docket Number: No. 09-2095.,09-2095.
• Citation: 624 F.3d 670
• Parties: Allan BROUGHMAN, Plaintiff-Appellant, v. Larry S. CARVER, Industry Operations Investigator, Bureau of Alcohol, Tobacco, Firearms and Explosives, Defendant-Appellee.
• Court: U.S. Court of Appeals — Fourth Circuit

624 F.3d 670

Allan BROUGHMAN, Plaintiff-Appellant,

v.Larry S. CARVER, Industry Operations Investigator, Bureau of Alcohol, Tobacco, Firearms and Explosives, Defendant-Appellee.

No. 09-2095.

United States Court of Appeals,Fourth Circuit.

Argued: Sept. 23, 2010.

Decided: Nov. 15, 2010.

COPYRIGHT MATERIAL OMITTED.

ARGUED: Richard E. Gardiner, Fairfax, Virginia, for Appellant. Thomas Linn Eckert, Office of The United States Attorney, Roanoke, Virginia, for Appellee. ON BRIEF: Timothy J. Heaphy, United States Attorney, Roanoke, Virginia, for Appellee.

Before GREGORY and AGEE, Circuit Judges, and Richard L. VOORHEES, United States District Judge for the Western District of North Carolina, sitting by designation.

Affirmed by published opinion. Judge AGEE wrote the opinion, in which Judge GREGORY and Judge VOORHEES joined.

OPINION

AGEE, Circuit Judge:

Allan Broughman operated a gun shop pursuant to a dealer's license issued by the Bureau of Alcohol, Tobacco, Firearms and Explosives (“ATF”). After performing a routine inspection of Broughman's shop in 2006, ATF investigator Larry Carver issued a report of violations concluding, among other things, that in order to lawfully conduct his business Broughman needed to obtain a manufacturer's license from ATF. Although Broughman administratively challenged Carver's finding, it was upheld by Carver's supervisor.

Broughman subsequently filed suit in the United States District Court for the Western District of Virginia, seeking a declaratory ruling that he is a “dealer,” not a “manufacturer,” within the meaning of the Gun Control Act of 1968 (“GCA” or “the Act”). Concluding that Broughman met the GCA's definition of a firearms “manufacturer,” the district court granted summary judgment in favor of ATF. For the reasons set forth below, we affirm the judgment of the district court.

I.

We begin with a brief summary of the facts and procedural history of this case. Broughman operates a gun shop out of the basement of his home in Covington, Virginia. Rather than maintain an inventory of firearms, Broughman's business is typically comprised of both repairing firearms and marketing and selling custom order firearms that he constructs. As the district court noted, “[e]ven by his own words, Broughman ‘build[s] custom bolt action rifles' by assembling the component parts of a firearm.” Broughman v. Carver, No. 7:08-CV-0548, 2009 WL 2511949, at *2 (W.D.Va. Aug.14, 2009).

The parties agree that in constructing such firearms “Broughman purchases complete firearms actions (frames or receivers with internal parts) from other licensees, and purchases rifled barrels from other sources. He threads and chambers the barrels to fit the actions, blues the actions, and makes wooden stocks which he fits to the actions and barrels.” Joint Appendix (“J.A.”) at 6.

During his inspection of Broughman's shop, Carver observed Broughman assemble a barrel, receiver, and stock for a customer. Carver's subsequent conversation with Broughman confirmed that he “assembled ... firearms and sold them for several thousand dollars” a piece. Id. at 43. Subsequently, Carver issued a report of violations that charged Broughman with “manufacturing” firearms without a manufacturer's license. Broughman's counsel sent a letter to ATF requesting the violation be removed on the grounds that Broughman did “not manufacture firearms,” id. at 45, but Carver's supervisor declined this request because it was “ATF's long standing position that the business activities” in which Broughman engaged were “considered to be manufacturing activities, necessitating a manufacturer's license.” Id. at 47.

In order to continue operating his business, Broughman obtained a manufacturer's license from ATF. ¹ He then filed suit in federal district court seeking declaratory relief and judicial review under the Administrative Procedure Act. See 28 U.S.C. § 2201(a) & 5 U.S.C. § 702. Broughman's complaint requested the district court (1) declare that he is a “dealer,” not a “manufacturer” under the GCA, (2) set aside ATF's determination that his business activities required a manufacturer's license, and (3) award such other relief, including costs and attorney's fees, as the court deemed appropriate.

The parties subsequently filed competing motions for summary judgment. After considering the parties' submissions, the district court rejected the proposition that Broughman could not “be both a manufacturer of firearms and a dealer of firearms” under the GCA, turned to the “ordinary meaning” of the word “manufacturing,” and concluded that “assembling the component parts of a firearm” came within the ordinary meaning of that term. Broughman, 2009 WL 2511949, at *2. The district court accordingly held that Broughman's activities constitute firearms “manufacturing” and entered summary judgment in favor of ATF.

Broughman noted a timely appeal over which we have jurisdiction under 28 U.S.C. § 1291.

II.

On appeal, Broughman contends that he meets the GCA's definition of a firearms “dealer” contained in 18 U.S.C. § 921(a)(11)(B), i.e., that he is a person “engaged in the business of ... making or fitting special barrels, stocks, or trigger mechanisms to firearms.” This specific definition of a “dealer,” in Broughman's view, renders the GCA's firearms “manufacturer” provision inapplicable because the GCA does not define a firearms “manufacturer.” See 18 U.S.C. § 921(a)(10) (referring merely to those “engaged in the business of manufacturing firearms or ammunition for purposes of sale or distribution”).

Because the GCA's terms regarding a firearms “dealer” are more precise, Broughman maintains the canon of statutory construction stating “the specific governs the general” should apply. Under this rule of construction, “[s]pecific terms prevail over the general in the same or another statute which otherwise might be controlling.” Opening Brief at 6-7 (quoting Fourco Glass Co. v. Transmirra Corp., 353 U.S. 222, 228-29, 77 S.Ct. 787, 1 L.Ed.2d 786 (1957)). Broughman suggests that, in light of this rule, “however inclusive may be the definition of ‘manufacturer’ [under § 921(a)(1) ], that definition cannot be held to apply to a person whose activities meet [§ 921(a)(11)(B)'s] definition of ‘dealer.’ ” Id. at 7.

ATF responds that “Broughman's argument is premised on the false assumption th [at] he [cannot] be both a firearms ‘manufacturer’ under § 921(a)(10) and a firearms ‘dealer’ under § 921(a)(11).” Response Brief at 7. “[T]he GCA and the regulatory framework promulgated by ATF for implementation of the GCA,” in ATF's view, “compel the conclusion that Congress recognized that a person could be both a firearms ‘dealer’ and a ‘manufacturer.’ ” Id. As such, ATF would have us apply the ordinary meaning of the term “manufacturing” and conclude, based on “Broughman's admissions to Carver, Carver's observations of what Broughman was doing in his gun shop[,] and Broughman's own description of his acts in his amended complaint,” that Broughman is engaged in the business of “manufacturing” firearms and must obtain a manufacturer's license. Id. at 8.

III.

Whether Broughman is a firearms “manufacturer” within the meaning of the GCA is “a question of statutory interpretation, a quintessential question of law, which we review de novo.” United States v. Joshua, 607 F.3d 379, 382 (4th Cir.2010) (quotation omitted). Our objective in all cases of statutory interpretation is “to ascertain and implement the intent of Congress.”

Scott v. United States, 328 F.3d 132, 138 (4th Cir.2003). Because Congress' intent “can most easily be seen in the text of the Acts it promulgates,” we begin with an examination of the statute's “plain text.” United States v. Wills, 234 F.3d 174, 178 (4th Cir.2000).

The GCA's licensing requirement states: “No person shall engage in the business of importing, manufacturing, or dealing in firearms, or importing or manufacturing ammunition, until he has filed an application with and received a license to do so from the Attorney General.” 18 U.S.C. § 923(a); see also 27 C.F.R. § 478.41. In this case, the parties do not dispute that Broughman's bolt-action rifles meet the GCA's definition of a “firearm,” or that Broughman satisfies the statute's “engaged in the business” requirement. See 18 U.S.C. §§ 921(a)(3) & 921(a)(21)(A). Their disagreement solely concerns the GCA's distinction between “manufacturing” and “dealing” firearms.

Under the GCA, a firearms “manufacturer” is defined as “any person engaged in the business of manufacturing firearms or ammunition for purposes of sale or distribution.” Id. § 921(a)(10). The statute does not further define the term “manufacturing firearms.” In contrast, the GCA defines a firearms “dealer” in three distinct ways. ² See id. § 921(a)(11). The pertinent part of the statutory definition at issue here states that a “dealer” is “any person engaged in the business of repairing firearms or of making or fitting special barrels, stocks, or trigger mechanisms to firearms.” Id. § 921(a)(11)(B).

“Absent explicit legislative intent to the contrary,” we give the words of a statute their “plain and ordinary meaning.” Carbon Fuel Co. v. USX Corp., 100 F.3d 1124, 1133 (4th Cir.1996). The plain and ordinary meaning of the word “manufacture” is “to make into a product suitable for use.” Merriam-Webster Online Dictionary (2010); see also id. (listing as related words “assemble, build, construct ... refashion, [and] remake”). We therefore conclude that manufacturing firearms under § 923(a) entails assembling a firearm's individual components so as to render the firearm “suitable for use.” ³ The manner in which Broughman conducts his gun business; i.e., “build[ing] custom bolt action rifles” by threading and chambering barrels to fit firearms actions, bluing the actions, and making and fitting stocks to the actions and barrels; undoubtedly places him within the statutory category of a firearms “manufacturer.”

To circumvent...